CSR Sustainability Business Report Assignment Sample
Executive summary
The report sheds its light on sustainability business to reduce cost and improve business areas through satisfying different customers. CSR in modern day strikes a balance between social interest and business through creating a sustainable global economy and cohesive society. Core characteristics of CSR include managing external operations, voluntary activities and stakeholder management with aligning social and financial values. The study further elaborates several theories for understanding the stakeholder management within an organization to create sustainability. Strategic approaches of International organization and recommendations are further depicted in this report. Ecological responsibility, enhancing social warfare and enhancement of CSR strategy arte presented to improve business performance in this global market. Sustainability business approaches are a significant area to create brand awareness and reduce environmental impact through cost reduction.
1. Introduction
The report is based on the sustainability and social responsibility of organisations in the construction industry. This report provides an overview of CSR and the proper way to maintain this CSR for the improvement of the ecological environment of MayKa organisation. Nowadays, international organisations are more focused on this matter as it helps to improve their business. Organisations are using several processes and theories to improve their performance in this industry and try to maintain their social responsibilities to maintain their customer base. The aim of this report is to know about CSR in the construction industry and possible strategies to improve their business opportunities.
2. CSR in modern-day
Figure 1: CSR in the construction industry
(Source: Statista.com, 2017)
Corporate Social Responsibilities (CSR) is a process that has to be accepted by every construction organisation. CSR provides organisations to do their social responsibilities and it helps to gain ethical consideration. It helps to enhance the performance of their employees. CSR is a company’s commitment to managing economic effects and the social environment. A company is trying to perform its operations to fulfil the expectations of the public. This helps to improve the trust of their customers towards the organisation and it also improves the sustainability of an organisation. This process helps organisational employees to know their social responsibilities and understand the mindset of their customers. CSR helps to improve the sustainability and investment process for an organisation. This help to increase the value of the organisation people is more into providing social to that organisation that arrange health care functions, child care programme and all. In 2015, there is the highest amount of investment have been spine by the construction industry in this CSR cases.
The investment went to 21022 million Euros to improve the ecological responsibilities. According to some research process, it came to know that, the investment from 2013-2017 the investment, in this case, is going to 13 million euros. This depicts that the value of CSR in the modern days and construction industry is mostly focused on this thing as it improves the situation of having more social support from the people and it improves the employee performance by improving their skills and there are more reliable on having customer engagement (Statista.com, 2017). Employees are able to know the demand of their customers and the organisation provides the customer support and service to fulfil them.
3. Core characteristics of CSR
CSR is one of the important tasks that have to be performed by all organisations and this provides an opportunity to show the social responsibility of organisations towards the environment. This helps to build sustainability of an organisation and it helps to make goodwill in people’s mindset. There is some core characteristics of CSR mentioned below –
Voluntary activities
This CSR helps to develop the ecological environment and in this task, the organisation has to include all of their employees and workers to do their responsibilities. MayKa is an organisation that focuses on this part to improve its employee management process. Company is able to reset most of the customers and maintain their customer base through performing their social responsibilities. Therefore, these prices also help employees to act as a volunteer and it helps to know the demand of their customers and people. It also improves their customer engagement skills. This is the reason why MayKa is focused on such types of social work. This organisation is performing their voluntary activities in community investment.
Stakeholder management
There are several external factors that have been found in construction that an organisation has to take care of maintaining the workflow of the organisation as well as the work efficiency of employees. In this, stakeholders play an important role and organisations have to maintain them to get initial support for the development of the organisation. the organisation has to maintain a good relationship with suppliers and investors who are providing proper raw materials and equipment and financial backing to an organisation. Mayka is able to maintain a good relationship with their stakeholders and this helps them to get proper quality raw material and equipment in the meantime and investors provide support for which organisations never face financial risk. The organisation has revenue of £136.0 billion in 2019 and on the other hand, there are approx 28000 employees working for the organisation (case study).
Managing external factors (Developing society)
External factors help an organisation have social support that improves the overall performance of the organisation. In this construction industry, social support is one of the key supports that help organisations to maintain their customer base. In this case, Mayka is focusing on the development of society that increases the goodwill of organisations. These social activities help organisations to maintain their employee performance and their social activities are able to maintain their managing social factors of organisations. MayKa takes proper precautions to perform its task and maintain the ecological environment of the organisation.
Social and economic alignment (Inclusion)
A construction organisation has to focus on their organisational social activities as well as their organisational economy. The balance between both of these helps an organisation to make goodwill and also improve their company economy. MayKa analyses their economical situation before performing their social activity and tries to get social values that help organisations to maintain both of these. Social activities help organisations to maintain their customer base and as a result, it improves the income percentage of a company. An organisation may face issues if they do not have economic support and organisation is unable to perform their social responsibilities without having a proper financial backup. MayKa maintains proper rule and regulation for every employee that provides an opportunity to have equal access and other opportunities that helps them to get rid of intolerance.
Practices and values (Diversity)
In the case of corporate social responsibility, practice and values play an important role to improve the performance of an organisation. MayKa has to provide a training session to their employees to perform these social activities properly and understand the demand of their customers. On other hand, companies analyse their ethical values and provide training sessions to their employees. MayKa is a company that focuses on the diversity of its employees. That is why there are approx 28000 employees working for the organisation and there are no such internal issues that have happened in the organisation. MayKa is able to maintain diversity in their company to improve the mindset of their stakeholders.
Beyond philanthropy
Philanthropy is the process of providing initial support to their employees in both financial and social ways. MayKa is an organisation that arranges charitable functions to provide support to their employees by whom they are able to focus on their work and improve their organisational performance. It also improves the ethical values of an organisation and this ability to improve the overall performance of an organisation.
4. Theoretical Analysis
Caroll’s Pyramid of CSR theory
This theory helps an organisation to know the process and reason for taking social responsibilities. Therein this pyramid model there is different kinds of responsibilities that have been mentioned that should be performed by an organisation to perform their social responsibilities. MayKa can use this theory to help organisations to provide an overview of processes that can be applied to improve their social responsibilities and the reason for performing this. Other than this, organisations have to maintain their economic responsibilities, legal responsibilities, ethical responsibilities and philanthropic responsibilities. These responsibilities help to maintain both internal members and external members of MayKa.
Other than this, it helps to maintain diversity between employees and provide them support to improve tier organisational performance. In this scenario, MayKa has to look into their economy apart and maintain a proper balance between their social factors and the economy of the company. This improves the performance of companies in social responsibility (Huo et al. 2021). Other than this, organisations have to maintain the law of the nation and run their business and other social responsibilities. As there is a pandemic situation going on all over the world, there are restrictions in social gathering and organisations have to maintain this. Therefore, employees should treat their customers to help increase the goodwill percentage of their company. This theory also helps organisations to maintain financial support to organisational people that boost their motivation and work efficiency.
Five Capitals Model
In the construction industry, there are multiple types of capital that have to be maintained to improve business procedures and maintain the annual income rate of an organisation. Other than this, organisations have to develop proper strategies to maintain their working infrastructure and maintain their social responsibilities. In this theory, there are five types of capital that have been mentioned such as natural capital, human capital, social capital, manufactured capital and financial capital. MayKa has to maintain this capital to maintain their several departments. Natural capital helps organisations to take natural resources and have environmental services that help to perform organisational tasks (Guidoni et al. 2021). Therefore, there is human capital which is for employee’s salaries and related to their increments. This works as a motivation factor for employees to boost their productivity.
Other than this, there is social capital that is related to expenses that have been done for performing social responsibility. This helps the organisation to maintain its ecological activities to gain more customer support and have more customer engagement. There is manufactured capital that is based on the arrangement cost of producing customer service as well as developing their projects and or tasks. Apart from this, there is financial capital. This helps MayKa to invest their capital in shares and other things that help to increase the annual income of the organisation and the company is able to use those values in their problematic situation. MayKa has to maintain these five capitals properly to expand their business and improve their organisational performance and social responsibilities.
This theory is based on three aspects and an organisation has to maintain this to get an overview of CSR and improve ecological responsibilities. Organisations have to maintain the planet, profit and people to improve quality of work and improve their business workflow. In this scenario, MayKa has to identify the goals of the organisation and the reason for running its business in the construction industry. This provides a particular goal to organisational employees to improve their individual skills and performance. Therefore, there is a planet that helps to identify the most important objectives of an organisation. MayKa is able to have its objectives and develop possible strategies on the basis of those objectives (Hammer & Pivo, 2017). Therefore, there is a people line that helps organisations to expand their business in a proper area and it also helps to get advantages to arrange social work and it improves the customer base of the organisation. The organisation is able to maintain these aspects to improve its performance in the construction industry.
4.1 Analysis of stakeholder theory
This theory is based on capitalism that stresses the relation between an organisation and its stakeholders. In an organisation, there are internal and external stakeholders that provide economical support and working support to improve business procedures. This theory implies that an organisation should look for development and create values for their stakeholders instead of the company’s shareholders. These stakeholders provide service, raw materials, equipment and financial support for the development of organisations. MayKa has to maintain a proper relationship with their suppliers, shareholders, customers, creditors and social people that provide them with external support and help to improve business performance in the meantime (Tangestan et al. 2020). On the other hand, organisations also provide support to their employees to maintain manager-employee realisation and boost the morale of their employees. Employees are key to maintaining the workflow of an organisation. Other than this, organisations have to resolve employees related to issues to maintain workflow for organisations. An organisation has to look into society and social responsibilities that improve the goodwill of the organisation.
5. Strategic approaches used by international organisations
There are several issues and challenges that have been found in the construction industry in the case of managing CSR. This is why organisations are improving their strategies to overcome such issues and maintain their ethical values and social responsibilities for the development of their business procedure. Strategies are as follows –
Environmental strategies
In the case of maintaining corporate social responsibilities, MayKa has to maintain the internal and external environment of the organisation. Maintaining an internal environment means the company should have proper rules and regulations for employees and the management team should try to resolve their employee-related issues so the organisation is able to maintain diversity in their organisation. Engagement teams are able to improve the performance of their organisation by providing them mental support. MayKa has to maintain its terms and policies properly that provide equal rights to employees and it impacts on managing stakeholders of the organisation. Therefore, organisations have to maintain a proper relationship with their suppliers, investors as well as customers to help to maintain the external environment of the company and through social responsibilities; MayKa will be able to improve their customer retention.
Philanthropic strategy
In the case of improving ethical values of organisations and improving CSR, organisations are targeting the philanthropic part of their organisation. The management team analyses data and information of their employees and other than this, organisations are focusing on arranging charitable organisations to improve the performance of their employees and these charitable functions help other people and companies provide economical support to organisations (Giacomin & Jones, 2021). MayKa should use this strategy for the development of their organisation and maintain their social responsibilities if they want to improve their environmental performance. These will help organisations to improve their goodwill. There are 28000 employees approx work for the organisation and MayKa should support their employees and they provide support to the development of organisational business.
Ethical strategy
Organisation Have to go through researching on market and this wool help organisation to know their target audience. Organisation gave to take social initiatives where people are more into these social activities. MayKa should focus on providing support to those people that help them to have proper support. Other than this, these social activities help organisations to improve performance and improve their goodwill. These initiatives prove the ethical values of the organisation and other than this; it helps that organisation to maintain their social responsibilities (Collinge, 2020). Nowadays, people are more focused on those organisations that are into corporate social activities. The ethical strategy helps organisational employees to know the demand of their customers and employees are able to provide that support to improve their organisational business.
Economic responsibility
An organisation has to maintain its social responsibility on the basis of its economical background. A proper economical background helps organisations to make proper arrangements and precautions to improve the management process and it will help those organisations to improve performance for the development of their businesses. MayKa has to make a balance between their economic situation as well as their social responsibilities (Xia et al. 2018). This will help them to expand their business in the meantime. Other than this, MayKa has to focus on its economical strategy as the company has to bear with overhead expenses for the organisation and that can lead them to face financial risk factors. An organisation should maintain a Salary procedure for their employees that helps organisational employees to boost their performance and helps to mitigate CSR related issues and challenges.
Aligning community goals
This strategy helps organisations to collaborate with other companies that are into maintaining these social responsibilities and maintaining the sustainability of their business. MayKa should go to research possible organisations to collaborate that help them to arrange more social activities and also reduce the overhead cost of the organisation. This process helps to align community goals which are gaining customers and improving profit percentage through performing social responsibilities (Zimon, Tyan & Sroufe, 2020). However, there are pandemic situations going throughout the world and in performing social activities an organisation has to maintain proper precautions and try to avoid social gatherings for the improvement of that organisation. These are some of the common strategies that can be applied to improve the performance of the organisations in this corporate social activity.
6. Recommendations
6.1 On ecological responsibility
In the case of improving ecological responsibility, organisations have to choose a proper area where people have to focus on the development of their environment and society. This helps organisations to improve their work in social development. Employees of MayKa provide initial support in this work (Bamgbade et al. 2019). Employees of MayKa can provide the necessary equipment to help those people with this task.
6.2 On enhance social welfare
In the case of social welfare MayKa has to go through providing support in social activities and ecological development procedures. This can create goodwill for organisations and people provide social support in the development process of the organisation (Shackleton, 2018). The organisation has to arrange health-related programmes, unemployment compensation, child care assistance that helps to get a positive view from people.
6.3 On enhancing CSR strategy
In the developing process of CSR strategy, MayKa has to go through analysing more theories that help the organisation to improve its performance. Other than this, the organisation should arrange some data collection procedures that help to understand the demand of their customers and other people. On the other hand, this CSR strategy has to be properly analysed to improve the business procedures.
7. Conclusion
This report provides an overview of CSR and the impact of social responsibilities in improving organisational performance. There are several characteristics that have been mentioned those help organisations to know about their social responsibilities. There are some theories mentioned that help to understand CSR and its impacts on business growth. Some characteristics have been used by MayKa and there are some strategies that are used by international construction organisations that can be implemented in the infrastructure of MayKa. These Theories help other organisations to know possible ways to develop an effective strategy and organisations are able to develop their business procedures.
Reference
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Xia, B., Olanipekun, A., Chen, Q., Xie, L. & Liu, Y., (2018). Conceptualising the state of the art of corporate social responsibility (CSR) in the construction industry and its nexus to sustainable development. Journal of Cleaner Production, 195, pp.340-353. Available at: https://eprints.qut.edu.au/120034/1/Conceptualising%20the%20state%20of%20the%20art.pdf
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Websites
statista.com , 2017, Sustainability ON CSR. Available at: https://www.statista.com/statistics/425758/socially-responsible-investments-united-kingdom-sustainability-themed/ [Accessed on 26.11.2021]
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