Importance of Corporate Social Responsibility (CSR)

Corporate Social Responsibility can be defined as the duty of the organization towards the wellbeing of the society in which it operates in. It means that the company needs to engage in the wellbeing of the other parties both in legal and economic sense (Suliman, Al-Khatib and Thomas 2016). There exist different types of CSR activities which exist in the organization like the follows;

Environmental based CSR: In this kind of a CSR activity the organization focuses on the eco-issue challenges which are faced like the climate change and the world temperature.

Community based CSR: The different business enterprises in the given scenario work towards the welfare of the Community and tend to improve the life of the people living in the particular place.

HR Based CSR: This CSR Activity concentrates on the wellbeing of the Staff which works for the chosen organization.

Philanthropy: Through this activity the business donates money to a good cause through an intermediary charity partner or any other related means (Crane, Matten and Spence 2013). The given framework can help in understanding the framework which can be used effectively to identify the different issues which exist with respect to the Corporate Social Responsibility of a business organization.

If the company, TAKIMAKI engages in a CSR Activity in China, it will benefit in the following manner;

Satisfied employees: When programs related to employee welfare are conducted by the organization take place, the employees working in the company feel engaged and respected. This perception tends to go a long way in assisting the organization to achieve higher degrees of production as motivated and happy employees contribute in a better manner to the organization (Cheng, Ionone and Serafeim 2014).

Satisfied customers: The CSR activities also tend to make the different customer satisfied. This is because the customers are a part of the society and if the TAKIMAKI Company engages in activities which make these society members happy, the customers would like to willingly purchase from the organization.

Positive Brand Image: A company which engages in a good share of CSR activities tends to have a positive image in the eyes of the different consumers and this tends to go a long way in building a positive image of the organization.  When the different consumers feel that the different companies tend to engage in the CSR activities then they want to purchase the goods as provided by the company

More business opportunities: The Company like TAKIMAKI will be prone to more new opportunities if they contribute well and engage in more socially responsible activities (McWilliams2015). This is because a contribution to this kind of activity will have an impact on the long term wellbeing of the organization.

Cost reductions: Very often the government organizations also tend to provide subsidies and reductions to the company which helps in reducing the costs of the organizations

The scenario of the China with respect to the Corporate Social Responsibility is very risky and although the organizations contribute well towards to the society, they need to ensure that the activities of the company are in good faith and in line with the activities of the organization. The different Corporate Social Responsibilities related to CSR in the chosen country in the China are as follows:

1. Donation to disaster relief

CSR activities for TAKIMAKI in China

These days different countries are prone to various activities which tend to hamper the environment and pose a threat to the wellbeing of the people (Taiand Chuang2014). Hence, when different hazards like a volcano, earthquake or a tsunami tend to take place, then the lives of thousands of employees are impacted. Hence, the company can greatly contribute towards these relief methods which are present in lieu of the disaster.

1. Protection of Human Rights

The Human Rights in China is a questionable issue. There are several Non-governmental organizations and certain other companies which are greatly involved in such activities and tend to help the rights of the people. Hence, in this context even the company TAKIMAKI can contribute towards the wellbeing of the different people who are being denied their basic human rights. This sphere covers human slavery and trafficking which is prevalent tin certain parts of the country.

1. Safeguarding the wellbeing of the different consumers

This can be done by ensuring that the products as provided to the consumers are based on ethical concepts. In this reference, the company can contribute towards the wellbeing of the different people as well by providing them with products which may last long, are made after considering ethical standards, will not harm their life in an manner and by providing them with external assistance.

1. Elimination of corruption

Corruption is a key issue which exists in various countries including China. Hence, when TAKIMAKI expands to china it needs to ensure that it is able to fight against the internal corruption which tends to take place in an organization (Schwartz2017). It needs to ensure that all the employees are paid well and the different sanctions which are made are allocated to the right activities.

1. Open Public Day

The Open Public Day concept is a popular in China and hence, adopted by various Chinese companies. Following this even the company TAKIMAKI should conduct these sessions regularly whereby stakeholders and the general public tend to visit the organization and get to provide their opinion on the different concerns and the operational suggestions.

Support by the Government

The government of China highly supports the CSR legislations whereby the different companies are highly supported in their path towards CSR success.

Question: 2

Introduction

            Automotive industry can be considered as one of the potential market for the electronic product manufacturers such as TAKIMAKI. This is due to the reason that there are number of electronic products required in the automobile industry and with time, this is increasing rapidly. This is due to the reason that in the current time, contemporary cars are having the more extensive use of electronic parts and products ranging from microprocessors to car entertainment systems.

On the other hand, it is also important to consider that automobile industry is huge in terms of revenue and size and thus the market potentiality will also be more for TAKIMAKI. Furthermore, automobile industry is going through a transformation change in the recent time by means of electrification. Electric vehicles are taking the place of conventional gasoline powered vehicles. These electric vehicles are more superior compared to the conventional vehicles in terms of use of electronic parts and technologies (Nykvist and Nilsson 2015). Thus TAKIMAKI is having huge opportunity in foraying in the automotive sector.

Benefits of engaging in CSR for TAKIMAKI in China

Impact of automotive market on the sales of TAKIMAKI

            Currently, TAKIMAKI is only operating in the electronic appliance sector with having a few products in their portfolio. Thus, it is not a viable option for TAKIMAKI in entering in the global market or in a particular market with this limited product portfolio. It is also important for TAKIMAKI to come up with new products for new markets in order to cover more diverse range of customers in the global market. According to the Ansoff matrix, this strategy is termed as diversification.

Initiation of the diversification strategy will help TAKIMAKI to have their presence in different market segment and having products that will be different from their existing product line. It will enable TAKIMAKI to have more diverse product portfolio to target diverse range of customers and will also enable them to enhance their brand value and exposure (Penrose 2017). On the other hand, automotive market is way bigger than that of electronic appliance market and thus the market potentiality for TAKIMAKI will also get increased.

Recommended products for TAKIMAKI to develop

            In the current automotive industrial scenario, electronic products are being used in mainly two forms, hardware and software. For instance, LED screens of Samsung are being used as car entertainment system in the automotive industry. While on the other hand, software such as car play system from Apple and Android for the cars (Fleming 2015). However, in this case, it should be considered that some of the electronic products are being sold in business to business format while some can be sold in business to customer format. Majority of the software products such as car play system and the microprocessors are being sold to the carmakers and not to the end customers. While on the other hand, hardware products such as the entertainment systems are being sold both to the carmakers as well as to the end customers.

            Thus, it is recommended that TAKIMAKI should target the hardware market over the software sector. This is due to the reason that huge investment and expertise is required n developing the software products. In addition, the existing players in this market are already established and there is very less chance of penetrating in this market by TAKIMAKI. Hence, it is recommended that TAKIMAKI should come up with latest car entertainment system such as LED screens, sound systems and Bluetooth connectivity device. Operating in this sector will help TAKIMAKI to sell their products to both the end customers and the carmakers. Thus, the market size and potentiality will get increased.

Consideration of different issues

            There are number of factors should be considered in marketing the recommended products in the global market. One of the major factors is the sustainability. This is important due to the reason that in the modern business scenario, business organizations should be sustainable enough in order to have long term potentiality along with having fewer impacts on the environment and surrounding community (Gao and Bansal 2013).

It is suggested that TAKIMAKI should initiate the social marketing strategies in order to have both social and commercial aspects. Initiation of the social marketing strategies such as offering cheaper hardware in low cost possible for the affordable cars will help them to meet the social expectation as well as meeting the business objectives (Burchell, Rettie and Patel 2013). CSR activities should be initiated in line of their business due to the reason that new products should get publicized through their CSR activities. For instance, offering of entertainment devices to the schools. This will help in meeting the social responsibilities along with making the potential customers aware about the products.

            It is also suggested that social innovation and CSR activities should be initiated in accordance to the local market requirement of the target country. This is due to the reason that social requirement will be different in different countries and activities should be initiated in such a way that it will meet the local requirement of the target country.

Conclusion

            Thus, it can be concluded that TAKIMAKI should come up with car entertainment devices in order to enter in a new market. This paper discussed about the potential benefits to be gained by TAKIMAKI by entering in the automotive market. It is concluded that offering entertainment devices for automobiles will help TAKIMAKI to enhance their market share and revenue. In addition, the factors that should be considered by TAKIMAKI in marketing their products in the new markets are also being discussed.

Reference

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