Good Example Of Learning Points Report

Corporate Social Responsibility is an attitude whereby organization should give back to the society where it operates and not only focus on maximizing its profits. In this regard, the organization should take into consideration the interest of all stakeholders such as customers, employees, shareholders, community and also the environment. The major aim of CSR is to influence the society positively.
CSR Development; in the words of Pfeffer, the performance of a person’s actions are inappropriate in assessing his or effectiveness. However, the key issue is the motivation or intention of such individuals to solve the problems. Therefore, effective way to evaluate the effectiveness of an individual is his or her ability to manage and control resources that links him to others. In an organization, most important thing is interrelationship among the employees. In a attempt to create ethical business practices and create organization image, organization should focus on social ties.
The major drivers of CSR therefore include; the conscience of the top management and its employees, social needs or unrests, government requirements, pressure from human rights, organizations, and technological changes among other external factors. To achieve the best CSR, inter-organizational relationship is vital in gaining support and building ally or social network. Through inter-organizational support, the organization is able to build power within the community where it operates and therefore have control of its resources and support from the social networking.
One of the questions revolving around CSR is; could ally-building lead to power creation outside the organization? And could this lead to ordinary employee acts like managers to meet socially responsible wishes of the organization? The get answers to this a thorough analysis of origin of power connected to the effectiveness of personal motives for various conclusions in an intra-organizational environment may be linked to organizational objective taking into consideration organizations good mission.
Advantages of CSR; what builds the good relationship between the organization and society is the interpersonal relationship and loyalty towards each other. As a result it enables an organization to balance its corporate powers with responsibility. CSR discourages government regulations since it could be satisfied with the organizations acts. Additionally, the CSR could be very profitable to the organization. This is well explained by its ability or power to access resources due to its social ties/networking. As a result, it is therefore helps to create and enhance stakeholder’s relationship.
Drawbacks of CSR; As a result of the obvious reasons, CSR has some disadvantages such increased costs resulting to decrease in economic efficiency and profits. The cost incurred in CSR programs are passed on to the stakeholders. The employees within the organization may also lack expertise required in the CSR programs. Additionally, the cost of incurred in CSR programs may not be the same between competitors and lastly CSR rests obligations on business instead of individuals.
CSR also enhances organization reputation. For instance, Starbucks has created a source of power by creating good relations within the society in which it operates. Through its code of ethics and sustainability of the environment and its support to coffee farmers, it has built a good image and reputation. For instance, according to Schultz 2005, the organization believes that their success is as result of its high commitment to meet its customers’ needs through high quality coffee and unique customer expertise. Additionally, the organization carries out all its operations in a way that it socially, environmentally and economically beneficial to the society.
While evaluating the effectiveness of the Starbuck and that of its employees, Schultz believes that it is important to consider both economical and non-economical ally-building sources of power.
The major source of ally-building powers is the society within which Starbuck operates and is achieved as a result of its stakeholders such as employees and customers. One of the CSR programs that Starbuck is involved in is “Make Your Mark.”The company has injected a lot funds into this program. For instance, it donates $10 for each volunteered hours. Starbuck has built a link to coffee farmers through their alliances and buys coffee from these alliances. The amount of purchases from the alliances was about 14.5% of its purchases from 2003 to 2004.
Starbuck success is further linked to inter-organizational ties build on mergers, joint ventures, integrated board of directors among other transactional interdependencies.