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What are the problems in this case study that relates to Corporate Social Responsibility (CSR)?
What are possible alternative innovative solutions for the problems? (i.e. new innovations, strategies, business models etc)
What are possible recommendations for the solutions to the problems?
What business management theories/models etc, could be used to identify, assess, implement or monitor the problems identified?
Also,
The tasks requires me to create a ‘CSR/Ethics’ program or a related issue that will:
a) create a better external brand image, and
b) promote internal CSR ideas.
Could you please make detailed answers to the above questions.
Please remember that all these questions are to be answered in the context of Corporate Social Responsibility and ethics.
CASE STUDY:
Sydney Travel Group (STG) is a major player in the international travel marketing space. They have been growing steadily over the past decade through traditional brick and mortar stores with basic online marketing and joint venture strategies. The company turns over 10 billion US per year. They have also grown their baseline value (known as: Total Transaction Value or TTV) by acquiring companies on capabilities. Two years ago they saw an alarming trend. While their transactions went up, the overall sales in some key competitors went down. The CEO Danielle Harding, was at first not concerned because the TTV was up. The puzzle became a real concern when this year the TTV went down by 15% followed sharply by a decline in the share price. An emergency board meeting was called asking for solutions.
A decision was made that the company had to innovate at any cost. After the board meeting Danielle briefed your management consultancy team:
“We have had a good look at our business. We know that the industry is not going to turnaround anytime soon. So we have decided that we must innovate. We have highlighted our one of our key problems as corporate social responsibility. We are dedicating one million dollars over the next six months for proposals to innovate our business. We are looking to drive our TTV through four key areas: New Business Models and/or New Strategies, Better ways of working that are more efficient, improving how we communicate and our workplace culture and industry leadership in sustainability and CSR. Our research showed us that our core business is strong but sales are down. We have been very slow to move into the internet market. Our strategy of working stores is working well but not as well as we would like. Our employee barometer survey showed us that our people leave the organization all the time. Our employee turnover is high. The same survey revealed that many external people, potential customers, were also moving away from STG.
NOTE: You are expected to draw on theory to solve this problem
Expert Answer
Following are some Importance of CSR
- Achievement of long term objectives- The society by being socially responsible, in turn gets benefits of operating in a better community and environment .
- Enhance the brand image- Now a days, consumers are selective and sensitive to an entity’s brand image. They are drawn towards entities enjoying good reputation.CSR activities results in positive press coverage and enhances an entities reputation with the public , customers and within the business community.
- Helps manage ecological damage- A socially responsible entity makes all possible efforts to save the environment. This helps to in resolving the major environment issues.
- Improved financial performance- Enhance brand image, reduced operating cost, increased sales and increased productivity, all these factors go long way in improving the financial performance
- Reduced operating cost- Human resource initiatives taken by an entity helps it on reducing absenteeism, reducing wastage and ineffieciencies, improving productivity, promoting innovations etc, thus results in operational efficiency.
- Increase ability to attract anf retain employees- A socially responsible entity is able to retain the employees. Also it finds easier to recruit talented employees.
Following are some strategies which shall be implemented in solving the problems and implementation of CSR practices.
1.Top management initiative- CSR should be given prominence in entity’s mission, vision and value statements. These statements should incorporate ethical concerns that go beyond making profit and promoting the interest of all the stakeholders.
2.Management structure- CSR measures shall be integrated in operations and decisions at all the levels. A CSR committee should be established to identify and implement CSR measures. There is no universally accepted management structure for promotion of CSR. It varies upon the nature of business, size of the organization , geographic region etc.
3.Strategic planning- CSR measures should be integrated in the long term planning processes and strategies.
3.Accountability in job profiles- The job profile of all the employees should contain specific goals for CSR. As far as possible, the goals should be laid down in quantifiable terms.
4.Employee recognition and rewards- Employee tends to engage in behavior that is rewarded and avoid the behavior that is penalized. Employees should carry appropriate weightage for awarding promotion.
5.Communication education and training- Employees should be clearly communicated about their roles and responsibilities in implementation of CSR measures. The entity should regularly conduct training and development program to serve as a vehicle for sharing experience.
