Corporate Social Responsibility Initiatives Primarily

Question: Discuss about the Corporate Social Responsibility Initiatives Primarily. Answer: Introduction: It has been a norm globally for organizations to engage in corporate social responsibility. Corporate social responsibility refers to an organization, institution or foundations giving back to the society for philanthropic purposes or giving in kind (Horrigan, 2010). This paper will be examining the motive behind organizations investing highly on corporate social responsibility, the paper will ask questions; like are the institution involved in corporate social responsibility in aid of the society in which their businesses are premised or are they giving in kind as selfless or altruistic acts and values. For proper illustration and justification, the paper will examine some of the internationally accredited and established business and their motive behind CSR. The aspect of organizations undertaking CSR in kind or altruistic value is raises a question, while the organizations might want to impact the society that they operate in positively, the communities or societies being supported by the businesses may consider the act of kind giving, as an opportunity for business in competitive advantage, or businesses giving to operate within their clauses, especially businesses that have a value of positive transformation of societies. CSR has even been used by political parties while campaigning, for instance in UK, the conservative party has advocated for responsible business across UK. Companies in the UK under influence of the conservative party will be seen giving for altruistic reason, though the motive behind is to be in terms with the ruling political parties (Horrigan, 2010). The society interprets CSR in good kind especially in most of the developing countries, organizations like the Coca-Cola, have invested in painting schools in Africa and maintenance of roundabouts on major roads, though societies and communities where Coca-Cola has presence will translate the kindness of the company to their society, Coca-Cola is giving for reputation management. Coca -cola is valued at 96% intangibly, the leader in soft drink business has managed to use its CSR activities to build its reputation, to be the most desired brand in soft drink, the organization giving in kind will be considered a selfless or altruistic motive though its giving to build its image and reputation in the market (Mullerat, 2010). Coca-Cola which thrives on the soft drink industry to thrive, discovered that its competitive strategies arent enough, it had to come up with other models that can support the strategies in place, thus the need to employ corporate social responsibility model.Corporate social responsibility involves companies, giving services or money in kind, supporting certain causes in the society where their business operates in. Coca-Cola supporting causes like donating football uniforms in primary schools where it has a business footprint, the uniforms are branded with coca cola logo. Coca-Cola also support digging of boreholes, especially in African communities, where piped water is very scarce The corporate social responsibility increases shareholder value, the aspect of giving uniforms to football clubs and supporting causes in the society, enables the society to interact more with the Coca-Cola brand. Most investors tend to partner or invest with companies that have certain principles, Corpo rate social responsibility gives Coca-Cola an advantage to woo investors. (Mullerat and Brennan, 2005). Most of the international organizations, tend to give back to the societies to be at cordial relationship with governments, companies that are seen supporting the local activities are normally perceived to be doing business and investing the same on the placement of their businesses other than channeling all their profits to the mother countries, or where the businesses are headquartered. The organizations are normally given tax incentives by the governments, where their businesses are premised, there is an open and free market and they are not subjected to corruption for their businesses policy and framework to be embraced in the societies. (Lacy and Salazar, 2006). In this context it will be wrong to interpret that an organization is only giving for the purpose of altruistic value. At times for the fear of losing customers, organization are obliged to engage in CSR activities, some of the clients to businesses might be large stakeholders or people who purchase goods and services in large volumes, their exit from business will have an implication on financial structure of an organization., some of the clients will prefer to invest their money in a business with good ethics, businesses seen to be taking care of the environment in operation. Customers tend to be loyal in purchasing from organizations that positively impact their surroundings. An organization will highly invest in CSR for the purpose of meeting the expectation of the customer and main stakeholders in the market. The society will perceive an altruistic value in the environment though blindly, the society is impressed at a cost. Customers will buy from the same organization and it is the profit as a result of their investment which will lead to CSR activities by organizations (Idowu and Leal Filho, 2 009). Institutions engaged in corporate social responsibility have a great share value in stock exchange, a cartel of businesses analyst tend to advise investors to boycott in buying shares from companies that arent giving in kind, this result to fall of share value in the market and a decline curve in profits is expected to a company not practicing such values of altruism, in the long run, an organization will be forced to engage in acts of giving alms or selflessness as perceived by the society though this is primarily for the purpose of safe guarding the share price in the market and avoidance of lose in stock value and market boycott from the investors and financial analysts (Hawkins, 2006) It has been observed globally; companies that engage in CSR activities increase employee loyalty, there is an increase too in motivation by the employees especially when the senior managers are seen actively participating in the CSR activities, the employees perceive the organization as one that is caring and they are proud to be supporters of the cause undertaken by the organization.( Mermod and Idowu, 2013 ).For instance, Avon has increased pride in its employees, to represent it to women, since the company donates to breast cancer research (Hemat and Yuksel, 2013). For this reason, companies will engage in corporate social responsibility, primarily to motivate its employees in objective execution of the company, employees will participate in representing their organizations though the employers have an expectation from them, this argument depicts the motive behind CSR in organizations. A top executive in any organization, will not abandon his or her busy schedule to engage in a Csr activity without an expected payback. Societies are improved when organizations invest on the corporate social responsibility roles, though a great analysis will reveal organizations roles and acts are not in kind but a desired objective in the market. The fruits to the organizations might not be physical at the particular moments the top executives, avail the CSR plans in the market, though fruits will be harvested in the long run. Most organizations donate in kind and also the merchandise donated are left with their corporate logo, for instance if its sports uniform, whenever the teams play, the spectator will not only enjoy football but they will be seeing advertisements running in the field, it will affect sales of the donating company positively and greater revenues will be experienced. Organizations will claim they are carrying out CSR activities for altruistic purposes though at some instances its a selfish motive. Some organization want to have a global presence, they do so by beginning Corporate social responsibility activities like funding education in Africa, later the organizations will partner with companies with good reputation and with some global presence, what follows the partnership in sponsorship of the CSR activities like aiding education, this enables the company seeking funds to have some presence globally. During the ground breaking ceremonies towards the CSR activities, both companies receive attention from the international media and thus they use the selfless act of corporate social responsibility to acquire some global market attention. Companies undertake the CSR to improve relations globally and at the same time have some global media coverage. (Spence, 2010). Organizations have departments that are in charge of the CSR activities, it doesnt happen in a vacuum, they strategically develop ways and plans toward execution of the activities. In comparison to advertising, CSR can be cheaper and the rate of believability is higher, a community will see an advert in between news bulletin and switch to the next station where there are less advertisements. People will always watch documentaries with information about a company giving back to the society, irrespective of how customers will tend to disagree on product pricing and services; they will agree highly agree on activities of an organization. Organizations cut on the cost of advertising either to the customers on the relevance of their business, or their employees, reasons why they should stick longer with the company even though their pay might not match up with the competitors (Lundstrom et al, 2013). It has been noted that most organization will tend to support CSR activities either in line of the business or in line with the evils that they are causing in the society, where the businesses are operated. Cement manufacturing firms are highly likely to engage in CSR activities like planting trees and conservation of the environment. Companies will cause evils in the society and respond to their ills on how they care about the environment which they have been polluting through carbon emissions and exposure of flora and fauna as they mine to produce cement, in this context the organizations are giving not for an altruistic reason, but to soothe and blind fold the society not question their business operations (Handford et al, 2011). Organizations that sell antiseptics and soaps will engage in CSR activities like washing hands in schools, they are advocating for cleanliness in the society at the same time they end up selling more soaps and antiseptics to the community, more pieces of soaps are sold than ones that were donated during the CSR activities. The society and schools see an altruistic value, but the company perceive an opportunity to advertise while cutting costs. There are organizations which give freely for altruistic values, churches and religious institutions, engage the community by availing them with commodities such as food, shelter and clothing, they will give to meet their religion values for instance in Christianity like giving alms to the poor is considered lending unto God (Barker et al,1985). Organizations with such doctrines will give freely and in acts of selflessness in the society. The organizations even depend on funding from their followers, they will not subject who gets the donations or the major beneficiaries of their donation but they will give in support or recognition to the values that they strongly believe in or support. Organizations like world food program, Hunger safety net program, support citizens in some of countries in Africa like southern Sudan and northern Kenya where people are hunger striven, they do all this for an altruistic purpose and they expect nothing in return from the beneficiaries or even under their strategies. They have an objective to feed people globally and others have an obligation to treat the sick, organizing medical camps and they will never receive any attention or gain anything its out of selflessness (Day and Lvheim, 2016). Conclusion The paper begins by defining corporate social responsibility as an act of giving back to the society for philanthropic purposes or giving in kind. Whether organizations give primarily for altruistic act in the society has been greatly discussed, the paper has analyzed the Coca-Cola company which has greatly given in kind, it has been noted that as a result of giving the organizations has market value and an asset value of 95% which is intangible derived from corporate social responsibility. Organizations are giving to woo customers, to retain employees and also to maintain relationships either with governments regulatory bodies or other organizations. On the other hand, organizations that are found on religious doctrines are giving for altruistic value, they endeavor to change livelihoods based on their beliefs. Whether institutions give primarily for altruistic purposes is a question with a two sided answer, for the community they are likely to believe in the organizations acts. The organizations are having an objective with their altruism. 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