Importance of CSR in an organization

Corporate social responsibility is the concept that focuses on completing the responsibility of the organization towards the society. In the recent scenario, corporate social responsibility is considered as one of the essential parts of the organization.  Every business gives focus on earning profits so that goals and objectives can be accomplished in a proper manner. The organization operates activities so that the needs and wants of the customers can be satisfied.  The responsibility of every business is to consider the requirements of the society so that activities can be conducted smoothly.

Sustainable development means the activities that are conducted by the organization on a continuous basis so that it does not give any negative effect on the society and on the natural resources. Sustainability is practiced by various organizations so that for future the safe environment can be created to survive. A theory of CSR is triple bottom line theory and it is related to the activities of the organization.  This theory is related to the moral community and also plays a role of social responsibility in a proper manner.  Triple bottom theory deals with the sustainability and also take into consideration the activities of the companies on the basis of three types of sustainability like economic, social and environmental sustainability (Cordeiro and Tewari, 2015).

The group of stakeholders consists of shareholders, employees, customers, suppliers and interest groups.  These terms focus on the problems that are related to the value of organizational accountability of the stakeholders and also the society at large. Stakeholder theory focuses that not only shareholders are interested but also there are many agents who are interested in the actions and decisions of the organization.  The theory highlights the requirement of the managers to be accountable to the stakeholders (Phillips, 2014).

 Stakeholders are individuals or groups which were harmed by the advantages of the company and also not giving focus on the rights. It is evaluated that organizations have various stakeholders that compete with the organizational resources and also evaluate the strategies for controlling and managing the stakeholders. The stakeholders who are engaged consider the control strategy that gives direct impact on the organization corporate strategy (Dam and Scholtens, 2015). By considering business it is evaluated that from their point of view the theory related to stakeholders covers three premises like: The companies have stakeholders that give direct impact on the activities; the interaction made gives direct impact on the stakeholders and the company; the stakeholders also impact the viability of the strategic option of the company.  

The Triple Bottom Line Theory and sustainability

So, it is important to consider proper strategies to deal with the primary stakeholders. There are also many companies who are unable to satisfy the need of the stakeholders. So, effective strategies should be considered by the organizations to survive in the competitive environment (Freeman and Ginena, 2015).

The relationship between the CSR and business is evaluated by many concepts of corporate social performance. Corporate social performance is related to the top management who takes into consideration strategic choices and decisions so that organizational development can be attained.  It is evaluated that organizational development is essential so that the growth can be achieved (Piazza and Castellucci, 2014).  It is analyzed that top management is important internal determinants of a company that considers CSP.  The social performance outcome of the company is essential for top management team and CEOs.  It is the responsibility of the top managers to consider and evaluate the issues and give proper solution to the issues (Hörisch et al., 2014). 

The organization is built by the individuals who are citizens themselves and have proper rights, duties, and responsibilities.  CSR cannot be considered if the individual does not behave in a proper manner and also act in a responsible way.  The organization gives training so that the development can be considered for future competencies.  Training is important so that the employees can gain proper knowledge about the products and services (Christensen et al., 2014).

The company takes into consideration many CSR programs like:

• Nestle healthy Kids programs: The Company created this program to give emphasis on the nutrition and health awareness of the school-age children.  The main objective of this is to raise awareness related to good nutrition and cooking practices and also to promote physical fitness.  In this, the children are involved in interactive sessions in which they receive nutrition and health knowledge and are encouraged to play on the regular basis.  This program enhances the image of the company and also gives an increase in the overall sales. It is evaluated that the sustainability can be maintained if the company considers proper programs in an effective way (Shafritz et al., 2015).
• Clean Drinking Water Projects and Water Awareness Programs: To enhance the access to safe drinking water, the company began constructing clean drinking water facilities in schools. The company conducts periodic water quality checks so that to ensure access to safe drinking water. This program also assists the company to enhance the image in the market and also to maintain a sustainable environment. It is seen that if clean drinking water is offered to the individuals then they live safe and happy life. The employees who are working in the organization are also offered safe water so that they can live safe and happy life (Geisler and Wickramasinghe, 2015).
• Sanitation facilities:  The Company ensures the basic availability of the sanitation facilities. Alos the company has sponsored in the construction of the sanitation facilities for girl students in village schools in the factory locations. The company has also set up over 234 facilities that offer benefit to more than 80,000 girl students. The sustainability can be maintained if proper services and care are given to the girl students.  The techniques used by the organization give direct impact on the stakeholder interest. If there is proper sustainable practice considered then it will give positive outcome (Hill et al., 2014).
• Water conservation in Agriculture: Nestle also launched a water stewardship initiative. The company conducts the activities with AgSRI so that the rice intensification and sustainable sugarcane can be initiated. The main emphasis is to set up train farmers on the ecologically sustainable practice to minimize the agricultural water at the time of enhancing the agricultural productivity.   It helps to maintain proper sustainability and also the ecological balance in the environment so that the activities can be conducted smoothly.

The company is inspiring and enabling many people to live a sustainable life by giving products that enhance the satisfaction level. The products that are offered to the customers save money also and help to consume good quality products.  The company gives emphasis by offering the products at low cost and reduces wastage of the food (Mansell, 2015).

Participating in creating a good life for the individuals and community can assist to support the development of good places to work throughout Nestle group. The company also focuses on supporting the rights of the human and to live more sustainable life. It is evaluated that a better life consists of living thee life in a more sustainable manner.  The company is working towards the goals for many years and also attained many benefits.  The company should also consider legal responsibility so that the rules and regulations can adhere.

 If the company is not working or conducting the activities according to legal rules and regulations then the positive image cannot be attained. It is essential to consider all the laws related to the business and conduct the activities according to that only so that overall objective can be achieved in an effective manner. If the organization is not able to accomplish the goals and objectives then to survive in the competitive environment is difficult. So, proper strategies and cooperation should also be maintained between the employees and management. If cooperation is maintained then activities can be conducted in a smooth manner. Employee involvement is also important to conduct the practices of CSR.  If CSR practices are considered then the image of the company is also increased in a proper manner (Meyers and van Woerkom, 2014).

Stakeholder theory and its implications

Conclusion

By evaluating all the points is evaluated that company should take into consideration corporate social responsibility so that goals and objectives can be attained in an effective manner.  Nestle take into consideration activities like sanitation facilities, Water conservation in Agriculture, Nestle healthy Kids programs, Clean Drinking Water Projects and Water Awareness Programs. This gives direct impact on the overall image and profitability of the company and helps to sustain for a long time in the competitive environment. These activities help to develop in a sustainable manner where there is no negative impact on the society and also on the natural resources.

It is seen that the company can only retain the customers and the employees if proper sustainability is maintained in the organization. Nestle also train the employees of the organization, so that the CSR practices can be attained and conducted in a proper way. It is essential to conduct the activities in such a way that it enhances the satisfaction level of the stakeholders and customers. 

References

Christensen, L.J., Mackey, A. and Whetten, D., 2014. Taking responsibility for corporate social responsibility: The role of leaders in creating, implementing, sustaining, or avoiding socially responsible firm behaviors. The Academy of Management Perspectives, 28(2), pp.164-178.

Cordeiro, J.J. and Tewari, M., 2015. Firm characteristics, industry context, and investor reactions to environmental CSR: A stakeholder theory approach. Journal of Business Ethics, 130(4), pp.833-849.

Dam, L. and Scholtens, B., 2015. Toward a theory of responsible investing: On the economic foundations of corporate social responsibility. Resource and Energy Economics, 41, pp.103-121.

Freeman, R.E. and Ginena, K., 2015. Rethinking the purpose of the corporation: Challenges from stakeholder theory. Notizie di Politeia, 31(117), pp.9-18.

Geisler, E. and Wickramasinghe, N., 2015. Principles of knowledge management: Theory, practice, and cases. Routledge.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Hörisch, J., Freeman, R.E. and Schaltegger, S., 2014. Applying stakeholder theory in sustainability management: Links, similarities, dissimilarities, and a conceptual framework. Organization & Environment, 27(4), pp.328-346.

Mansell, S., 2015. Book Review: Rejoinder to Veldman’s review of Capitalism, Corporations and the Social Contract: A Critique of Stakeholder Theory (Vol. 22, No. 2, pp. 271-275). Sage UK: London, England: Sage Publications.

Meyers, M.C. and van Woerkom, M., 2014. The influence of underlying philosophies on talent management: Theory, implications for practice, and research agenda. Journal of World Business, 49(2), pp.192-203.

Phillips, N., 2014. Corporate Social Responsibility Reporting–Nestlé Company. City.

Piazza, A. and Castellucci, F., 2014. Status in organization and management theory. Journal of Management, 40(1), pp.287-315.

Shafritz, J.M., Ott, J.S. and Jang, Y.S., 2015. Classics of organization theory. Cengage Learning.