Sustainable Operation — write a brief synopsis of the article that I have selected
Corporate social responsibility is an important aspect for most of the organizations. To most organizations, it is about giving back to the society. Questions have always emerged about the ability of corporate social responsibility to create value and competitive advantage for an organization. Some of the managers feel that corporate social responsibility does not offer businesses any competitive advantage (Husted & Allen, 2007). The paper is thus a synopsis of a research that was carried out on corporate social responsibility.
During the research, the data was collected from 110 firms in Spain through the use of surveys. The firms that were involved in the survey were drawn from a database of Spanish firms. The firms were operating in different industries in Spain. Data was analyzed by the use of quantitative method that involved statistical calculations (Husted & Allen, 2007).
Results of the research
The results indicate that the heavy manufacturing and chemical firms had marginal significance. This was attributed to the nature of activities that the firms were involved in and the environmental problems faced. It was found that most of the firms were engaged in corporate social responsibility in order to improve on their reputation. The managers were of the opinion that an improved reputation would impact positively on the growth and development of their organizations. The research also found that some of the business managers do not fully understand what corporate social responsibility is. Some managers think that it is part of the regulation. Most of the companies in France are also dependant on non-voluntary activities in terms of Corporate Social Responsibility. Projects that are visible to the public have the ability of generating more values and economic benefits to the organization. The government in Spain is widely involved in the Corporate Social Responsibility which has made it almost mandatory for all the organization. This has further complicated how the managers perceive corporate social responsibility. In Spain most of the organizations do not know how to re-orient the projects in order to create value. This is despite the knowledge that it has the potential of promoting innovations and creating competitive advantages for the firms (Husted & Allen, 2007).
Relevance to the industries
Corporate social responsibility has benefits to the organizations if it is well implemented. However, it may have more benefits to some industries as compared to others. The telecommunication industry can obtain more benefits as the brand image of the companies is promoted among the local people. Their results are also likely to be more visible among the customers. In the manufacturing industry, it may not have much benefit. This is because such companies have environmental problems which are difficult to control. The problems are also visible to the members of the public which impacts negatively on the reputation of the companies despite the presence of a corporate social responsibility program. The reputation for the companies in the financial sector is also improved through the social corporate responsibility strategies. A proper understanding of corporate social responsibility is however required of the managers (Husted & Allen, 2007).
In conclusion, the article puts more emphasis on the need for managers to understand the concepts of social corporate responsibility. Depending on how it is rolled out, it may or may not create competitive advantage to an organization.
Husted, B. W., & Allen, D. B. 2007. Strategic Corporate Social Responsibility and Value Creation among Large Firms: Lessons from the Spanish Experience. Long Range Planning 40, 594-610.