Key Principles of Corporate Social Responsibility and Sustainability

Sustainability plays a vital role to protect environment and further, CSR also helps in fulfilling the expectations and desires of the stakeholders. Therefore, the paper provides brief information about CSR practices and CSR. CSR is not only just a suitable public relations technique; it is a significant element for growing and survival in today’s global world. On the other hand, sustainability is also a fundamental component of the company to flourish the business internationally. Nokia has been chosen in the task to discuss the key principles of sustainability and corporate social responsibility. Apart from this, here is the discussion about the CSR and sustainability practices that are exercised by the company worldwide. More detail of the task has been discussed below.

Nokia is a Finnish multinational telecommunications company which is incorporated in 1865. There are approx 102,000 people are working who operates business activities and operations in more than 100 countries (Nokia, 2018). It is the 415^th biggest corporation measured by revenue in 2016 (Nokia, 2018). The company is further shaping the technologies and resources at the heart of connected world to convert the human experience in the competitive market. The main vision of the firm is to create the technology to connect the entire world. In today’s era, Nokia is maximizing its operating income and revenue by rendering innovative products to the customers across the world. The organization has found success and growth in various sectors over the years such as mobile devices, cable, paper products, rubber boots, telecommunication infrastructure equipment and tires. It shall be noted that Nokia sites uses personal experience and cookies to grow and expand the business internationally. The sites might also include cookies from third parties. The company has a great and dynamic leadership team that is accountable for the operative and administrative management of Nokia. The members and chair of the group are selected by the board. They also take care about the CSR practices and sustainability to make a attractive goodwill in the market (Nokia, 2018).

It is stated by Grigore (2011), CSR is a commerce process that contributes to sustainable progress and expansion by rendering social, economic, and environmental advantages for all stakeholders. CSR is an effective and dynamic concept with various practices and definitions. In other words, corporate social responsibility is a self regulating business model or tool that helps a firm be socially and economically responsible to itself, its stakeholders and the public. CSR is also known as corporate citizenship, responsible business, corporate responsibility and sustainable responsible business. CSR has become a popular research topic in today’s modern world. As per Schwartz (2017), CSR is stated that how the organizations handle the business processes and procedures to create and show an overall favorable impact on the environment and society as well. It is defined by Werther Jr and Chandler (2010), CSR is a voluntary commitment of businesses to include in their corporate activities and practices such as social, economic, and environmental actions and criteria that are beyond and above legislative needs and related to a broader range of stakeholders. CSR is an essential factor in increasing prosperity especially in present dynamic and unique business environment. Furthermore, it contributes in increasing and enhancing profits through various ways. It is essential for the companies engaging in CSR actions and practices to attain customer loyalty and trust in the competitive market (Belz and Peattie, 2012). It has been analyzed that companies that engage in CSR practices and activities, particularly on issues and concerns affecting their labor force, have a better option to attract and retain maximum qualified personnel. Robbins (2011) argues that, corporate social responsibility also promotes and encourages profitability and outcomes through its linkage with sustainability. It is noted that the main social responsibility of company is enhancement and maximization of profit that is attained through undertaking commerce in a free and open competition without any fraud (Brundiers, Wiek and Redman, 2010).

CSR and Sustainability Practices of Nokia

On the other hand, sustainability also plays an empirical role to meet the long term needs and requirements of the business. Sustainability focuses on meeting the needs, wants and necessities of the current without adjusting the capability of future generations to convene their desires and needs. According to Leipziger (2017), business sustainability may be defined as handling and managing the triple bottom line process or procedure by which the firm manages their community, monetary and environmental risks, challenges, opportunities and commitments (Blackburn, 2012). These three effects are also referred to as citizens, planet and income. Moreover, sustainability helps in securing long term financial performance and productivity by ignoring short term collectively detrimental and environmental wasteful behavior and action. Sustainability is a process of communication between a residents and the carrying potential and capacity of its environment such that the population builds to articulate its full potential and capability without producing irreparable, negative impacts on the carrying capability of the situation upon which it depends (Visser and Tolhurst, 2017).

The key principles of sustainability and corporate social responsibility also play an empirical role to conduct business actions and operations in a hassle free manner. Some of the key CSR principles have been discussed below.

Purpose: It plays a fundamental role to accomplish the long term objectives and goals. The company pursues opportunities while handling risk taking the social impact of the business operations and actions into consideration.

Our basic CSR principles: Respect for human rights, contributing to sustainability, diversity, dialogue and integrity are included in the basic principles of CSR.

From principles to practice: It entails reporting, insight and information, anticipating concerns, social impact evaluation, society venture and partly owned organizations and other business relationships (Nokia, 2009).

Roles and responsibility: It is the responsibility of the employees to follow all the rules and responsibilities effectively and efficiently. The specific responsibility for implementation is assigned to line management, business units and corporate CSR staff.

No rights created: This corporative directive is a statement of specific fundamental policies, principles, and processes that govern the firm. It does not generate any rights in any supplier, shareholder, customer, competitor and any other entity (Hydro, 2018).

There are five principles of sustainability that have been discussed below.

• Contain entropy and must ensure that the flow of resources within and through the economy is allowed by physical laws.
• The company adopts a suitable accounting system to direct the market, and fully associated with the planet’s ecological procedures and inclusive biospheric pricing.
• Ensure that all the forms of diversity in life is maintained properly (Bhamra and Lofthouse, 2016).
• Increase degrees of possible self realization and sovereignty of all humans without any group or individual negatively affecting others.
• Distinguish the seamless and maximize degrees of potential (Eli, 2018).

It is stated that scope of sustainability and corporate social responsibility are much wider as it also affect the growth rate of the company positively. Sustainability is a transformation and expansion of the company and it also creates long term value in the competitive market (Epstein, 2018).

Findings and Recommendations

It is stated that corporate social responsibility and sustainability also play a vital role in Nokia. The company creates the technology to connect the world in a hassle free manner. The firm further works to bring around a more sustainable and socially responsible world (Kumar and Christodoulopoulou, 2014). The organization designs technologies to drive environmental, social and economic progress and the firm also can seek to harness the various opportunities of connectivity for people and planet as well. It is analyzed that every organization’s circumstances and attributes are quite different and it may affect how the firm initiating and explaining social responsibility (Idowu et al, 2013). Therefore, there is no way for pursuing a CSR approach and practice as well. It is noted that Mobile communications play a big and fundamental role in people’s lives.  It is analyzed that Nokia is already considered a biggest player in the mobile telephone industry (Ikerd, 2012). The CSR practices that are being operated by the company have been discussed below.

Environmental protection: The main aim of Nokia is to be a leader in environmental performance. The company is focusing and identifying four major issues such as energy efficiency, substance management, and take-back and recycling and encouraging sustainability through software and services. For example, the company is reducing the average charger’s no lead power consumption from 2006 level by 50% by the end of 2010 (Nokia, 2009).

Labor security: It has been analyzed that Nokia conducts wide range of training programs, sessions and campaigns to increase awareness about safety and health issues. Nokia’s global injury and illness rate was 0.49 in 2009 and further there were no deadly injuries (Nokia, 2009).

Human rights: It has been stated that Nokia protects the rights and interest of the employees and community as well. There is no discrimination among the people on the basis of caste and religious. The firm conducts labor condition assessment programs every second year at all production sites (Kopnina and Blewitt, 2018).

Community development: Employees are considered the important part of the organization. It is noted that various workers give their efforts and time to improve the conditions of the society (Nokia, 2009).

Business standards: After the various studies, it is analyzed that Nokia follows all the rules, regulations and business standards to gain competitive advantages in the global market.

Employee wellbeing: It is the liability of top management and leaders to protect the life of the workers. Thus, they work for wellbeing and survival of the employees. Furthermore, managers provide support to the workers for maintaining life balance (Nokia, 2009).

List of Referenced Material Consulted

Supply chain: The Company also fulfills needs, expectations and requirements of the suppliers to provide satisfaction to them. The firm has developed and built a inclusive set of worldwide Nokia supplier requirements (Dahl, 2012).

Education and leadership development: It is stated that variety of training opportunities being provided to the employees by the company to develop and enhance their skills and talents globally. It is noted that the company spent 25 million euro on training and development coaching for the workers (Nokia, 2009).

Human disaster relief: Nokia is trying to respond to disaster relief. Various policies and strategies have been made by the company to reduce human disaster in an effective manner. All these CSR practices are being carried by the company while conducting business activities and operations widely (Nokia, 2009).

Nokia can have the wider impact on sustainable development and expansion and help to attain the UN sustainable development objectives and goals through the technology solutions and innovations that the company produce to connect things and people (Robertson, 2014). Nokia uses unique and innovative technology and natural resources to build dynamic image in the minds of the customers (Nokia, 2009). The sustainability practices that are being exercised by the company have been elaborated below.

• Nokia is improving the people’s lives with technology to connect with things and people. The company’s sustainability related services and products will help people thrive and live healthier and better lives on a cleaner planet (Bask and Kuula, 2011).
• The company is working to protect the environment. It helps the customers to minimize energy use and emissions. Furthermore, it increases product energy efficiency and builds product eco-design and handles materials. The company also reduces various environmental impacts of operations such as waste, resources and emissions (Bask and Kuula, 2011).
• Nokia conducts various business activities and operations with integrity and effectiveness. It upholds the greatest principles of corporate governance and business ethics. The firm also tackles issues or concerns related to data security, privacy, and potential technology misuse (Bask and Kuula, 2011).
• Further, it also ensures suppliers and vendors meet high labor, ethical and environmental standards that have been set by the company.
• Nokia also respect people to make a strong reputation and goodwill in the marketplace. The company also provides fair labor conditions in own activities and operations. It also maintains health and safety standards and norms to provide employee satisfaction, development and engagement.
• Nokia engages actively with stakeholders to contribute to global efforts towards a more ethically and socially responsible world (Dresner, 2012).

It is true that the company is working towards improvement of CSR activities and sustainability more. The company has got enormous recognitions and awards for effective work in sustainability (Nokia, 2018). This identification simply show the hard work of the workers which they do every day to drive sustainable expansion and development with and for business, stakeholders and customers. The company is also listed in the European and world DJSI indices. The success and growth in DJSI (Dow Jones sustainability indices), one of the growing and leading sustainability ratings, which is great recognitions for the work. The decision related to contribution in DJSI in 2019 will be done by the end of 2018 (Nokia, 2018). Aside this, the company continues to push forward sustainability work and actions in the workplace. In March 2018, Nokia is proud to be honored by the Ethisphere institute as one of the biggest and effective ethical companies owing to past achievements and bold vision for the future. The company set approx 46 long term as well as short term targets in sustainable business in 2017. 10 targets were accomplished and 3 were not attained at the end of 2017. 1 target for 2018 was achieved ahead of schedule in 2017. 32 long term and short term targets were ongoing and the firm further sets 10 new targets for 2018 in terms of sustainability (Nokia, 2018). In today’s modern era, the firm is using attractive and surprising Smartphone strategy to cope up with rivalries in the global market. In addition, the firm announced a road map that places specific emphasis on consumer Smartphone’s, high speed wireless and professional grade virtual reality equipment. It is noted that Xiomi has contracted Nokia to develop and improve a high speed fiber optic network that will help in interconnect the Chinese organization’s data network (Nokia, 2018).

The main competitors of the company include Samsung group, LG group and Motorola Inc. These competitors affect the success and growth of Nokia adversely. All the competitors produce same products as well Nokia such as mobile communication products, wires and TV sets. Nokia is one of growing leader in mobile industry (Nokia, 2018). It produces good quality and durable mobile phones to attract and retain maximum customers globally. Nokia is making effective and dynamic strategies, policies and plans to keep an eye on the business activities and operations of the competitors. Along with this, the firm also uses accurate pricing strategy to capture the entire market worldwide (Spense, 2017). The organization focuses on the culture and diversity to cope up with rivalries in the marketplace. They maintain dynamic and favorable culture to build good relationship with customers and suppliers as well (Nokia, 2018).

1. Some of the suggestions on how Nokia could enhance their practices and activities of sustainability and corporate social responsibility in the workplace.

• The company should focus on the strategies and policies of competitors to strive with them effectively and further, it will also help to conduct business actions and activities in a hassle free manner.
• The company should make unique and effective purchasing decisions in the workplace while operating business globally.
• Improving and enhancing corporate social responsibility means adopting a dual mindset and apart from this making unique decisions that have direct and global impact on the business (Nokia, 2018).
• Nokia should always seek for opportunities to contribute in society events. Aside this, the firm should also provide support to the local communities and companies to carry out CSR activities and sustainability.
• Nokia must work actively to generate an environment that supports and promotes employees to put ideas about how to improve and enhance corporate social responsibility.
• Effective leadership styles must be used by the company to enhance and improve the practices of sustainability and corporate social responsibility. In this way, the company has been able to attain desired goals and objectives efficiently.

1. Suggestions for further research have been discussed below.

• To attain long term advantages, Nokia should align CSR communications with business strategy and vice versa. It will help the firm to explore and expand the business operations widely.
• The corporation should engage with investors on CSR and sustainability topics in their language.
• The organization should focus on the wastage and emission to improve the sustainability and CSR. Effective waste management is a significant element in reducing environmental impact and encouraging sustainability.
• Nokia should make agreement with sustainable organizations and further, the company should invest money in green technologies and development.
• Eco-friendly improvements shall start within the organization itself. Apart from this, the firm shall conduct sustainability initiative feedback analysis to analyze the outcomes and results.
• Nokia should also consider the stakeholders rights and interests to maximize and improve the value and worth in the competitive market.

All these initiatives shall be done by Nokia to enhance and improve corporate social responsibility and sustainability practices.

Conclusion

On the above mentioned analysis, it is concluded that sustainability and corporate social responsibility are essential part of each and every company. A brief literature review on key values and role of sustainability and corporate social responsibility has been explained in the task. The above analysis shows that how Nokia operates business activities and operations by exercising CSR practices and sustainability. Innovative plans and policies have been made by Nokia to overcome the rivalries in the international market. Along with this, the company also is also making dynamic plans and policies to enhance their practices of corporate social responsibility and sustainability. At the end, some recommendations or suggestions have been given to enhance and improve the CSR activities and sustainability. It is further recommended that the company should focus on the effective and attractive advertisement and promotional strategies and approaches to build a dynamic network across the world.

References

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Belz, F.M. and Peattie, K., 2012. Sustainability marketing: A global perspective.

Bhamra, T. and Lofthouse, V., 2016. Design for sustainability: a practical approach. Routledge.

Blackburn, W.R., 2012. The sustainability handbook: The complete management guide to achieving social, economic and environmental responsibility. Routledge.

Brundiers, K., Wiek, A. and Redman, C.L., 2010. Real-world learning opportunities in sustainability: from classroom into the real world. International Journal of Sustainability in Higher Education, 11(4), pp.308-324.

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Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.

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Ikerd, J.E., 2012. The essentials of economic sustainability. Bloomfield, CT: Kumarian Press.

Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.

Kumar, V. and Christodoulopoulou, A., 2014. Sustainability and branding: An integrated perspective. Industrial Marketing Management, 43(1), pp.6-15.

Leipziger, D., 2017. The corporate responsibility code book. Routledge.

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Robertson, M., 2014. Sustainability principles and practice. Routledge.

Schwartz, M.S., 2017. Corporate social responsibility. Routledge.

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Visser, W. and Tolhurst, N., 2017. The world guide to CSR: A country-by-country analysis of corporate sustainability and responsibility. Routledge.

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