Question

Topic 11b: Corporate Social Responsibility

Kang, Germann, and Grewal (2016) researched existing literature to determine why companies engage in CSR activities. Their research revealed four mechanisms: · Companies engage in CSR because they are performing well financially and have slack resources · Companies engage in CSR because it improves financial performance · Companies engage in CSR as a penance for past irresponsible actions · Companies engage in CSR as a goodwill insurance policy in case things go wrong Which of these mechanisms best describe corporate social responsibility efforts in your organization? Explain your selection(s) and describe how your organization’s CSR activities impact, either positively or negatively, project performance.

Project Management

Answer 1

As per my organization practices, I agree with "Companies engage in CSR as a penance for past irresponsible actions". I have seen in my organization, the policies are contradictory to each other and acts differently at the time of practical situations.

Just take an example of current COVID-19 situations. The company is asking employees to go on unpaid leaves which is against to government announcement and not suits to it’s policy for society. As per their policy they are committed for the social development by means of happy and heathy Organizational living health policies. They also do not want to keep any record. So, penance can be done based on documents if legal inquiry happens, they can correct their past. And will develop show the improvement to run the business.

ISO 26000 clarifies what social responsibility is and helps organizations translate CSR principles into practical actions and company has been certified in this. But practically, acting differently.

Another example, companies are certified in OSHAS but not having proper employee evacuation plan for uncertain and emergency situations. Their kind of things may lead to damaging other properties (public/private).

Please comment to me if my answer is not making sense.