Economic Model of Corporate Social Responsibility-Free-Samples

Question: What we shall call the economic model of corporate social responsibility has its roots in free market, or neoclassical, economic theory. Answer: The economic model of corporate social responsibility emphasizes upon profit maximization of a firm while reducing the negative environmental and social impacts of the business activities. The model emphasizes upon achieving monopolistic power while considering the impact of the business activities on the environment and the society. The model states that the society is benefitted when the businesses are allowed to produce and sell profitable products that are needed by the society (Epstein Buhovac, 2014). It equally lays emphasis upon the business profits and the impact of the business decisions on the society. On the other hand, the moral minimum model states that an organization must first meet certain moral obligations and then attempt to generate profits. The model emphasizes upon the ethical responsibility of the organizations so that the business activities do not cause any harm. It states that the businesses must at first attempt to prevent any harm or do any good while carr ying its business activities. The stakeholder model of corporate social responsibility believes that any decision taken by an organization affects a large number of people associated with it such as the shareholders, suppliers, customers, employees, creditors, investors, business partners, owners, government and several others (Khan, Muttakin Siddiqui, 2013). The model states that the stakeholders must be involved in the important decision- making processes of the organization in order to ensure that they are benefitted from any decision taken by the organization. Any decision taken by an organization largely affects the stakeholders associated with the organizations. Therefore, it is necessary to involve the stakeholders in the important decision- making processes. The model states that the organizations must emphasize more upon satisfying the stakeholders and then emphasize upon generating profits. On the other hand, the sustainability model of corporate social responsibility emphasizes upon the legal, ethical, moral and social responsibilities of an organization along with emphasizing upon corporate governance. The sustainability model of corporate social responsibility involves all the above mentioned models of corporate social responsibility. It states that the ethical goals of an organization must be the basic part of the corporate mission of the organizations (Saeidi et al., 2015). Canadian Tires is a retail public company based in Canada, which was founded by Alfred J. Billes and J. William Billes in the year 1922. The company is located in more than 500 locations across Canada and produces automotive, sports and leisure and home products. The company provides employment to more than 58000 individuals ("Canadian Tire | English | Canadian Tire", 2017). The company also sells toys and food products in some of its stores. The company offers a wide variety of bicycles, eco- friendly house hold cleaners, CFL bulbs and several other sustainable and eco- friendly products. The model chosen for the company is sustainability model of corporate social responsibility as the model best suits the organization. The company has been successful in satisfying its stakeholders and has successfully fulfilled its moral and ethical obligations. According to Suliman, Al-Khatib Thomas (2016), Canadian Tire has emphasized upon three factors namely environmental, social and financial performance that have driven the sustainable practices of the company and has helped the company to grow its business. The sustainable practices of the company have enhanced the brand value of the organization and have helped the organization to minimize its cost and adverse impacts on the environment. The sustainability model of the company focuses upon reducing energy and wastes while improving its operations and ensuring that the organizations products meet the demands and expectations of the customers. On the other hand, according to Lynch Yerashotis (2017), the company has laid huge emphasis upon reducing the negative environmental impacts of the organizational activities. The company has been successful in saving $2.7 million in annual cost avoidance. The sustainable practices of the organization have helped in the reduction of 1.14 tonnes of wastes and 6386 tonnes of green house gases. The company has successfully launched several employee programs in order to improve the performance of the employees while improving the environmental quality. The company has been successful in implementing sustainable practices within the workplace. The employees have been encouraged to share their thoughts and ideas within their teams using mobile applications and have been successful in tracking the progress of the employee activities. On the contrary, according to Karakowsky Guriel (2015), the company has failed in achieving cent percent sustainability. The company has been able to curb the green house gases to some extent but the business activities of the company still emit green house gases. The company has strived to become more energy efficient by using lesser resources and generating lesser wastes but the wastes generated by the business activities of the organization still harm the environment. However, the company is required to emphasize more upon limiting the emission of harmful pollutants from its business activities. According to de Bakker (2016), the company has been successful in promoting healthy living and building safer communities. The company has been continuously investing in several social causes and has implemented honesty, integrity and respect in its business activities. The company has been committed to being a good neighbor, which helps the people enjoy their lives in Canada. The company believes sustainability more than a marketing initiative and aligns the business strategies with the benefits t the customers, environment and the society. The company has been successful in optimizing its productivity by initiating value chain improvements. The company has laid equal emphasis upon developing innovation in order to invent more sustainable processes and products. In order to enhance the brand, the company has tried to enhance its corporate reputation. The company has successfully engaged its employees by integrating sustainable practices into the daily business operations. However, according to Saeidi et al., (2015), there remains much scope for the company to enhance its sustainability model and further improve its sustainable business activities. The company is required to share its sustainable practices and success with its stakeholders and involve them in the process. The company must accept thoughts and ideas from the stakeholders on how to further improve the business sustainability while ensuring the business profitability. References: Canadian Tire | English | Canadian Tire. (2017). Canadiantire.ca. Retrieved 15 December 2017, from https://www.canadiantire.ca/en.html de Bakker, F. (2016).Managing corporate social responsibility in action: talking, doing and measuring. CRC Press. Epstein, M. J., Buhovac, A. R. (2014).Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Berrett-Koehler Publishers. Karakowsky, L., Guriel, N. (2015).The Context of Business: Understanding the Canadian Business Environment. Pearson. Khan, A., Muttakin, M. B., Siddiqui, J. (2013). Corporate governance and corporate social responsibility disclosures: Evidence from an emerging economy.Journal of business ethics,114(2), 207-223. Lynch, M., Yerashotis, G. (2017). Sporting chancers: Three Canadian corporations representations of sport-for-youth-development.International Review for the Sociology of Sport, 1012690217734543. Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction.Journal of Business Research,68(2), 341-350. Suliman, A. M., Al-Khatib, H. T., Thomas, S. E. (2016). Corporate Social Responsibility.Corporate Social Performance: Reflecting on the Past and Investing in the Future, 15.