Corporate Social Responsibility

Detailed Analysis of issues/Challenges. Why CSR is important?

The shrinking role of government

Of late governments have depended on legislation and regulation to convey societal and environmental goals in the business sector (Ajmal and Lodhi 2015).  Depleting public resources, tied with mistrust of control has contributed to the examination of a voluntary and non-regulatory process initiated.

Demands for greater disclosure

There is an increasing demand for corporate revelation from the stakeholders, including suppliers, customers communities, investors and employees, and activist organization (Ajmal and Lodhi 2015).

Increased customer interest

There is confirmation that moral conducts of an organization wield a growing effect on the purchasing resolution by the customers. In the recent research by Ajmal and Lodhi (2015) at least one in five customers reported that they had have either incentive or castigated corporation based on their apparent social performance.

Growing investor pressure

Investors have altered the way they evaluate the organization’s performance and are making a decision depending on the approach that involves ethical concerns. Coles, Fenclova, and Dinan (2014) reported that there is over $2 trillion value of assets which are invested in the portfolios which utilized screen associated with the environment as well as social responsibility separate research by Patwardhan and Bardhan (2014) found out that more than a quarter of the shares possessed by the Americans considered ethical concerns while buying and selling the company.'

Competitive labor markets

Employers are continuing to cast their eyes beyond paychecks and benefits and need managers who have philosophies as well as practices that equal their principles (Ajmal and Lodhi 2015). In order to employ and maintain skilled workers, organizations are forced to develop better working conditions.

Supplier Relations

With the increase of stakeholders’ interest in business issues, a lot of companies are taking initiatives to regulate the manner in which their competitors carry out their activities in a socially responsible way (Patwardhan and Bardhan 2014). Some stakeholders have come up with the code of conducts to those who supply them with production inputs to see to it that other organizations do not taint their reputation.

Triple bottom line

The bottom line accounting frame model uses three dimensions of presentation which is social, environment and financial. It is not similar to conventional since it composes of environmental and social mitigation measures which are easy to assign correct means of dimensions (Patwardhan and Bardhan 2014). 

The concept behind this theory is that organizations are accountable to their stakeholders and is inclusive of every individual who is involved in the activities of their company directly or indirectly. Thus, this theory considers stakeholders as part of their group (Patwardhan and Bardhan 2014). Companies are critically relying on success by hiring, training and motivating good employees.

The bottom line accounting frame model uses three dimensions of presentation which is social, environment and financial. It is not similar to conventional since it composes of environmental and social mitigation measures which are easy to assign correct means of dimensions (Patwardhan and Bardhan 2014).

Konica Minolta threw a major surprise at drop in 2016; disclose that it is creating the KM-, aB1 kind of format sheet of UV digital press which was aiming at the commercial prints as well as the packaging segments making the program to be the first printing system to be developed by Konica Minolta (Barney).

The company has tried to use the theory to break down the consumer pressure challenge into areas in which business can create strategies to solve such. First is the business model – causing impact strategy in which the goal is an intrinsic part of the consumers in which their satisfaction is put in the first line of consideration (Barney).  The second is involving stakeholders in finding the solution concerning the consumer challenge and finally, the company comes up with value chain optimization whereby the impacts of such solution will be to the environment.  For instance, they came up with a proposition that in case one wants to buy packaging which involves a lot of environmental waste, he should look at the bigger picture to find out if there are other means to leverage the process of production to be less wasteful.

Resource based view (Creating sustainable competitive advantage) in relation to CSR

The resource base view is an approach of viewing an organization in terms of approaching strategy.  Basically, this approach formulates the company to be a collection of resources hence it is these inputs and the manner in which they are put together which differentiate a firm from others (Coles, Fenclova, and Dinan 2014). The resource-based view approach to enable managers to weigh the variations in qualitative and quantitative factors with regards to customers’ preferences.  The company did this by asking the customer, employees, and community what they want and hence relate them with their available resources and the Millennium Development Goals requirements. When a company is using a rare resource in its production process to deliver exclusive strategies to attain competitive advantage besides, for example, Konica Minolta developed 3D printing which other companies do not much.