Such a term as corporate social responsibility is used to describe a business model which implies that the management of an organization should focus on the impact of its activities on the welfare of the community (Sims, 2003, p. 43). This is one of the principles that can be identified.
Additionally, this notion implies that business administrators should consider the interest of various stakeholders such as employees, consumers, stockholders, environment, and the society in general. For instance, many companies want to improve the work environment, even though the state does not make them act in this way (Sims, 2003, p. 43). As a rule, these policies are not required by the existing regulations.
These are some of the elements that should be considered. In turn, environmental sustainability strategies are aimed at ensuring that a company does not cause harm to the environment. These strategies can vary significantly, and they usually depend on the specific activities of an enterprise.
While CSR and environmental sustainability strategies increase the costs of an organization, they bring social benefits and help this business create a competitive advantage over rival firms in the industry. In this way, an enterprise can strengthen its reputation and gain the loyalty of workers. Moreover, these companies can become more energy-efficient. These are the main questions that should be examined in this paper.
The benefits of this strategy can be best illustrated by looking at the examples of companies which adopt this approach. Among them, one can distinguish the Walt Disney Company that operates at an international level.
This organization ensures that its workers have access to the same benefits, even if they labor standards of some countries do not require this corporation to offer the same compensation to the employees (Asongu, 2007, p. 128). This company wants to meet international labor standards that are set by non-governmental organizations (Asongu, 2007, p. 128).
This policy increases the welfare of various communities in which the Walt Disney Company operates since the purchasing power of many people increases. Nevertheless, this strategy also brings some improvements to this corporation.
In particular, in this way the management can strengthen the loyalty of workers and their commitment to the goals of the organization (Asongu, 2007, p. 128). Moreover, such activities are vital for reducing the turnover in the company. This is one of the main issues that can be singled out.
Apart from that, one should pay attention to the environmental sustainability. The representatives of the service industry and manufacturing companies can produce adverse effects on the environment. In most cases, the attempts to mitigate the negative effects are driven by the need to strengthen the reputation of a business. Such a strategy can create a powerful brand image for an organization.
Certainly, this policy can affect the profitability of a business; however, in the long term, it will bring some benefits. For example, it is possible to speak about the activities of the Walt Disney Company managed to have a record of unprecedented profits in 2012 while meeting very high environmental performance standards.
They were not obliged to do so by the state. It should be mentioned that this organization strives to reduce its CO2 emissions. This is why they rely on the trains powered by the bio-diesel fuel (Walt Disney Company, 2009).
This is one of the main issues that can be singled out. It should be mentioned that this corporation adopts the technologies which enable a more economical use of natural resources. For instance, bio-diesel, which is used by this company, is made of cooking oil (Walt Disney Company, 2009). This is another aspect that should be taken into account.
This strategy is helpful for minimizing the pollution of soil, air, and water. To a great extent, it can be beneficial for every member of the community. Furthermore, the adoption of eco-friendly technologies can offer many opportunities to the manufacturers of this equipment and the employees of these firms.
However, at the same time, this policy can positively affect the organization. For instance, it will be less dependent on energy resources, and in the long term, the operational costs of this corporation can decrease.
Secondly, this institution can appeal to a wider group of customers who pay attention to the environmental practices of various organizations. Thus, one should not suppose that the emphasis on CSR and environmental sustainability cannot bring any tangible improvements to an enterprise.
On the whole, one can say that there are various markets in which competing firms produce similar goods or offer services that cannot be easily differentiated. Under such circumstances, an organization has to develop a unique strategy that can distinguish its brand.
The emphasis on corporate social responsibility can be one of the approaches which one can take. The example of the Walt Disney Company suggests that this strategy can bring various improvements. One should consider improved commitment of workers, the strong brand image of a business, and its energy efficiency. These are the main points that can be made.
Reference List
Asongu, J. (2007). Strategic Corporate Social Responsibility in Practice. New York, NY: Greenview Publishing Co.
Sims, R. (2003). Ethics and Corporate Social Responsibility: Why Giants Fall. New York, NY: Greenwood Publishing Group.
Walt Disney Company. (2009). Disneyland Resort Implements Programs to Reduce Emissions. Web.