The benefits of Corporate Social Responsibility

The benefits of Corporate Social Responsibility

 

REPORT REQUIREMENTS
The report requires students to analyze key trends in sustainability among corporations through
corporate social responsibility. Thus, the report develops students’ business knowledge by requiring the
students to understand the concept of corporate social responsibility and how it benefits the various
communities’ corporations operate in.
This project develops students’ oral presentation skills. In addition, the project develops students’
written communication skills by requiring students to prepare concise written reports in order to defend
their analyses and conclusions.

REQUIRED:
1. Choose a corporation that has a corporate social responsibility program and drafts an annual
corporate social responsibility / sustainability report to its stakeholders.
2. Introduction of the company profile and what business they do.
3. Analyze the benefits of corporate social responsibility in general. Choose 3. Justify your answer
using the corporation you choose.
4. Analyze the limitations of corporate social responsibility in general. Choose 3. Justify your
answer using the corporation you choose.
5. Analyze the various corporate social responsibility activities that the corporation does (at least
3). Discuss whether you agree or disagree with the activities that your company appears to be
doing.
6. Conclusion
Note:
1. You must submit the entire corporate sustainability report (or the relevant sections) for each
company being discussed.
2. Your analysis must include page references to relevant portions of the annual reports, and the
relevant portions of the annual reports must be highlighted. Your report must also contain appropriate
quotation marks for quoted material and appropriate citations for material taken from sources outside
the financial statements.
3. THERE MUST BE AT LEAST 5 REFERENCES (AT LEAST 3 OF THEM ACADEMIC REFERENCES) EXCLUDING
THE TEXTBOOK
4. Your analysis is around 6 pages and must be typed, double-spaced, and have at least a 11 or 12-point
font.
5. The assignment is due on the date specified in the syllabus, i.e. November 26!

 

Solution

Introduction
Apple is one of the leading technologies in the world and over the years it has established
its branches in different parts of the world. Apple was founded in the year 1976 by Steve Jobs,
Ronald Wayne and Steve Wozniak, the company is well known for selling mobile phones,
laptops, and iPads. The company has grown developed over the years in terms of profit and
market share. The company generates more than $200 billion annually and has opened over 500
retail stores worldwide (Apple Inc 38). Recently, it expanded its stores into Saudi Arabia and has
managed to incorporate its Corporate Social Responsibilities in the country. Cooperate Social
Responsibility (CSR) is an approach that allows businesses to focus on sustainability by ensuring
that stakeholders benefit economically, socially and environmentally (Melo and Galan 2). Apple
Inc has incorporated CSR in its operations and the same case is mirrored in the KSA where it has
opened its retail stores.
The benefits of Corporate Social Responsibility
CSR positively impacts the society by providing sustainable strategies that investigate the
environmental conservation and social well-being by conducting operations ethically. Recently,
most of the organizations focus on environmental conservation to curb global warming.
Furthermore, they act ethically by conserving the environment and reducing the amount of waste
it releases into the atmosphere. Businesses tend to support public value outcome where they
manufacture products that add value to the customers bring a positive impact on society (Melo
and Galan 4). Moreover, some of the companies support public outcome by involving in some of
the activities, for example, philanthropy and volunteering. The companies also try to support

Corporate Social Responsibility 4
their employees by providing training, positive working condition and flexibility at the
workplace. CSR allows companies to develop training programs that encourage the development
and growth of employee in terms of knowledge and skills (Chan 2). CSR allows companies to
develop a positive relationship with customers at times by offering pro-bono services, for
example, forming a partnership with a non-profitable organization that brings positive outcome
in society.
Justification
As mentioned before, Apple Inc has incorporated CSR over the years to ensure that it
benefits all its stakeholders. The company increased its branches by opening new retail stores in
the KSA; however, it is imperative to acknowledge that Apple Inc incorporates CSR in its
operation. Firstly, it targeted to bring positive outcome in the society by promoting
environmental conservation. Currently, Saudi Arabia has a high capacity of carbon footprint and
over the years the country has formulated strategies to reduce its carbon release into the
atmosphere. Therefore, targeting environmental conservation is a bold move by Apple and it
further enhances its reputation when it comes to implementing CSR (Soojin et al 94). The KSA
has tried to draft some of the policies that ensure a company integrates its CSR strategies and
goals with some of the county’s agenda, for example, reduction of carbon footprint and
environmental conservation. Apple has followed this by manufacturing products that produce
less carbon. Apple Inc has strived over the years to reduce carbon emission. The company has
made this possible by producing products that are low in carbon emission. This is favorable for
KSA which is trying to achieve a green economy by reducing its carbon footprint. Apple
advocates for recycling of its products to reduce the generation of solid waste. The reduction of

Corporate Social Responsibility 5
solid waste through recycling works well with some of the KSA policies that require companies
to conserve the environment.
Apple made a bold move by negotiating with KSA government to allow the incorporation
of more women into its workforce. The company is focusing in promoting gender equality in
Corporate Social Responsibility that has seen more women benefit in KSA through employment.
Employing women is a form of women empowerment and it is also considered as empowering of
employees since most of the workers undergo training (Lauren 605). The training is offered to all
workers hence increasing the chance of women in KSA to benefit from some of Apple programs.
The company’s ability to provide training to its employees allows it to benefit the stakeholders
economically and socially.
Apple provides a volunteer program and donation which involves both the retail and
corporate employees. The involvement of employees in volunteering and donation through its
retail stores in the KSA impacts the community positively. Apple rolled out a volunteer program
worldwide which started in the United States and expanded into other regions. Furthermore, the
company encourages its employees to contribute positively to the growth and development of
society hence benefiting the community socially. The company has incorporated CSR over the
years hence winning a positive feedback from the government of Saudi Arabia and society in
general.
The limitation of CSR
The Corporate Social Responsibility requires capital hence making the companies operation
expensive. The use of capital tends to reduce the profit share for companies, especially when the
budgeting for CSR keeps increasing due to demands from the government or the need to increase

Corporate Social Responsibility 6
sales. Furthermore, it is important to acknowledge that CSR is also a marketing tool since some
of the customers are attracted to a company charitable activity. In case the company shifts its
focus from charity and focus on environmental issues it can lose customers. Therefore, the
company is forced to combine the two activities to gain more customers. This requires an
increase in budgeting to promote CSR which cuts the profit margin.
The Corporate Social Responsibility requires a strategy which may at times fail to
produce a positive result. A company can organize to hold a clean-up session in one of the
regions or countries to show its care for the environment in society. This activity may earn more
customers in one region and lose customers in another region who believe they deserved the
visit. Therefore, the CSR has no clear-cut strategies to promote a company’s volunteer programs
since one segment of the market may feel left out and start avoiding the product hence resulting
in the reduction of profit margin (Edward and Bridwell 144). CSR requires critical research
regarding society or community that the company is based to reduce withdrawal of customers.
Public scrutiny by society or community afterannouncing its CSR plan can become
detrimental to a company, especially when a company fails to meet its demand. Some of the
companies give press release that the public might misinterpret. This may impact the company
negatively because of customers avoiding an organization’s products since they think it did not
commit to its promises. Some of the members of the society may develop distrust or dislike to
some of the CSR programs provided by a company (Melo and Galan 7). The distrust may affect
the company negatively due to customers avoiding its product due to the development of a
negative mentality that the company wants to benefit from them.
Justification

Corporate Social Responsibility 7
Some of the initiatives provided by Apple have not reached some of the countries in the
world hence reducing the consumers trust the company. As mentioned earlier, CSR is a form of
marketing strategy which may fail due to customer perception about the program. Some of the
company’s CSR activities are more advanced in counties like the United States than in KSA.
This may result in consumers formulating a negative perception about the company’s CSR hence
avoiding Apple products since they seem to value one region than the other. There is no clear-cut
approach to follow when it comes to volunteer and donation program. Currently, Apple Inc
volunteer program is more advanced in western countries than in Saudi Arabia hence increasing
the chances of people developing a negative attitude towards the company.
On the other hand, the company has used million of dollars to incorporate CSR in its
operation (Apple Inc 36). This reduces the profit margin for the company; the same case is
mirrored by Apple Inc where it spends a huge amount of capital on CSR either by initiating
volunteering or donation programs. Despite Apple Inc contribution towards CSR it manages to
make profit, however, this profit would have been more without the initiative.
Public scrutiny is another negative effect of CSR that Apple Inc is facing, some members
of the community in Saudi Arabia may make follow up concerning Apple’s Corporate Social
Responsibility. The follow up may make some of the members develop a negative perception
towards apple hence discouraging other people in KSA from using Apple Inc products. In
addition, some members may dislike how Apple handles its operations in Saudi Arabia hence
discourage some of the members of the society from purchasing Apple products.
Agreeing with Corporate Social Responsibilities held by Apple Inc

Corporate Social Responsibility 8
The CSR held by Apple is one of the most advanced in the world since it focuses on
impacting stakeholders positively either economically or socially. One of the major steps that
Apple Inc has done is incorporating gender equality in its CSR; the company employs and
empowers women. This is fundamental for the growth and development of society. The company
provides training to all its employees regardless of gender hence empowering women in the
process. The other issue is environmental sustainability, Apple ensures it incorporates strategies
that promote environmental conservation, for example, manufacturing product that releases less
carbon into the atmosphere and the use of recycling to reduce solid waste in the environment.
The company also looks at promoting the well-being of the employees by providing a positive
working environment and work flexibility. The company further takes care of its employees
health by providing a training program that ensures worker master safety requirements hence
preventing injuries.
Conclusion
In conclusion, the employees CSR is one of the strategies that companies have adopted to
ensure that all stakeholders benefit. The CSR involves different activities that benefit the society
and employees among others, for example, the conservation of environment and training of
employees. Despite the success of CSR, it experiences some challenges, for example, reduction
in profit margin on the side of the company and a company market share may reduce due to
negative publicity from the community.

Corporate Social Responsibility 9

Work cited

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McCarthy, Lauren. “Empowering Women Through Corporate Social Responsibility: A Feminist
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Melo, Tiago, and Jose Ignacio Galan. "Effects of corporate social responsibility on brand value."
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Corporate Social Responsibility 10
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