Corporate Social Responsibility of Abc Company

Introduction

        Before the objective of organization is focus on increase performance of company to maximize the shareholder wealth. Organization currently is not only maximized the shareholder wealth and they also pursuing Corporate Social Responsibility (CSR) and sustainability. Due to globalization, consumer have stronger purchasing power because organization cannot force consumer to purchase their product and currently that are so much company are provide same types of product or service in the global market and caused them can east compare similar product provide by different company before buy the product. Consumer now also not only focus on price of product, they also seek high quality of product or service with the acceptable price, So, when the organization are well implement Corporate Social Responsibility and sustainability can help them generate competitive advantage in global market because that can provide good confidence on performance of company to shareholder, investor and good quality of product provide to customer. Corporate Social Responsibility become more mainstream ad expected thinking companies based implementation of the main of their business operations to generate market share and sustainability not just important for people and the planet, but also is vital for business success.

1. i. Corporate Social Responsibility and sustainability

        CSR is known as to company operation which will create impact on the social and environment to accomplish sustainability. CSR activity is mean to create policies that involve responsible practices into day-to-day organization operating and to providing on progress made toward executing these practices.

        In the past, CSR have conducted these four sort of social responsibilities that consider philanthropic, moral, legitimate and economic. Quality of good corporate citizen must conduct these 4 components and they are portrayed as the vase of a pyramid in the aggregate CSR. CSR organization have to hold these 4 elements to attempt to increase profit, follow law, be moral, and also become a good corporate citizen. (Carroll 1991).

        Combine the business strategy with good CSR can help the organization conduct proper “social responsibility” of business, and it can expected to change a social issues to become an economic benefit and opportunity, high pay occupations, human skills, productive capacity, and turn into the profit.(Drucker 1984).

        The packaging of of Absolute Beauty Company plc (ABC) products does not use expensive forms which it believes are largely unnecessary and where possible, it uses recyclable resources. It considers CSR practice because uses recyclable resources can help to reduce waste and ensure sources uses by ABC that not injure the environment to reduce the environmental impacts of ABC’s product.

        ABC also provides a naturally-based, ethically-sourced beauty care product which provide high quality and healthy of product to customer. Chief Executive of ABC also well known by his charitable work promoting healthcare in developing countries and ABC makes regular donations to a variety of human rights and social causes. It can provide good impact to social which to solve social problem makes social responsibility.

Sustainable enterprise are term currently utilized by company who are coordinating sustainable business hones into their corporate and brand strategy while looking to solve both shareholder and stakeholder interests by using these strategy. Corporate sustainability will increase the company’s profit but require long time of period to return on investment when initial investment is being made. Company has to spend cost before the profit are being made and generate profit in future. Organizations are make investment in socially ethical can attract skill-full worker, customer believe their product, goodwill and increase profit.

        Investor will look for good value of company before making decision. It is because investor will evaluate life cycle analysis and long term environment of a product before invest and this is why sustainability is importance for the organization. When the company have too large footprint, investor will not invest in these kind of company because they can seek other company in similar sector. Sustainability provide good confidence to investor which can earn income by higher employee productivity, well long term public following and good image.

        ABC has taken steps to become more energy efficient in its manufacturing processes and to reduce waste that is generated as by-product of production. ABC also cutting out intermediaries which raw materials is sourced directly from individual suppliers or community co-operative. Both can help ABC reduce the waste; cost and also can ensure quality of raw materials to help business and communities get better prices for their goods.

1. ii. Risk for ABC of pursuing social responsibility and sustainability

There is a broad conviction that CSR is a method for overseeing and lessening risk. CSR also creates risk even through people only commended possible advantages. There are many risk involved with and created by CSR. CSR also possible makes negative impact for a corporation in range of reputation, financial, organization, rule and regulation, operational, opportunity cost or administration. Related types of CSR for instance corporate sustainability may also conduct the risk.

        In a world of risk mindfulness, the risk of CSR is the most unknown, underestimate and politically incorrect risk. The organization who vested interests in CSR will block the presence of risk of CSR. It is uncommon for business and economic policies to have only an upside, with no trade-offs or risk. Obviously, CSR is one of method apply by company and always only state the many benefits of their CSR programs. They evidently offer only positive result for the organization and win-win situations for society also. It has been long suppressed because risk of CSR is largely internally generated.

         Absolute Beauty Company plc (ABC) is very conscious of the social and environment impact of its working practices and takes Corporate Social Responsibility very seriously and spent a lot of resources on pursuing social responsibility. It will reduce the opportunities of ABC to expend their business because the resources spent on CSR are consider opportunities cost and ABC could use these resources to spent on profitable opportunities for example hire more employees, enhance development in research and technology and it can improve their effective and efficiency of operations to increase profit of company.