The selected article, titled “Jaguar Land Rover and HSBC using CSR to Ensure Brand Success in China”, demonstrates how international corporations the world over are increasingly using the concept of corporate social responsibility (CSR) to win the market share for their brands in international markets by funding charitable activities that support the corporations’ commercial expansion (Rice par. 1-2).
We will write a custom Article on “Jaguar Land Rover and HSBC using CSR to Ensure Brand Success in China” by Andy Rice specifically for you
301 certified writers online
This particular article is consistent with the assertion that community-based development as an approach to CSR can result in immense competitive advantages for the firm, while at the same time contributing substantially to the sustainability of a society (Porter & Kramer 3-4).
The article details how Jaguar Land Rover (JLR) has used the Beijing Auto Show to establish China Children and Youth Foundation, which will be mainly responsible for supporting the dreams of under-privileged and disadvantaged children in China (Rice par. 3).
The author borrows from the HSBC website to demonstrate that such a commitment is critical to the long-term success of companies doing business in China, as it helps their bottom line while continuing to transform the environment and society (Rice par. 4-5).
The article illustrates how CSR has matured to become a sound strategy in penetrating international markets and increasing the competitive advantage of companies wishing to make long-term commitments in these markets. It also demonstrates how laws and regulations in countries such as China oblige organisations to initiate CSR programs in the course of conducting business (Rice par. 6-8).
Analysis and Application
This article provides deep insights into how companies can engage CSR to penetrate international markets and ensure their brands succeed in the market.
As demonstrated in organizational scholarship, “various CSR approaches provide opportunities or barriers for companies to convert their resources and knowledge into products, goods, and services that create wealth not only for their investors but also for local communities and wider stakeholders” (Filatotchev & Nakajima 302).
JLR has used the community-based development approach to CSR to support the under-privileged and disadvantaged children in China; however, the broader perspective is enhancing the competitive advantage of the company by employing CSR to gain international presence, market the firm’s brands as well as win the hearts and minds of the Chinese consumer (Rice par. 2-4).
It is believed that engaging in community-based development leads to more sustainable development (Porter & Kramer 3-4), and hence it can be argued that JLR is on the right track in terms of uplifting the status of the under-privileged and disadvantaged children in China while enhancing its competitive advantage.
Drawing from this exploration, the application of this particular article is based on its demonstration of how international corporations such as JLR and HSBC are using CSR to enter previously challenging markets such as China, and also to ensure the success of brands by demonstrating a deep commitment to redressing the various issues affecting the society and environment.
Simply put, the article demonstrates that a firm’s urge to remain competitive should be at the forefront in designing and implementing feasible CSR approaches, because CSR is a strategic tool that can be used to create opportunity, innovation and competitive advantage while at the same time solving social and environmental challenges (Porter & Kramer 1).
Overall, the article demonstrates how JLR has used the community-based development approach to CSR to penetrate the Chinese market and ensure brand success, while solving the social problem of the under-privileged and disadvantaged children in China.
To conclude, it can be suggested that the article is a good indicator on how businesses can make more profits by engaging in activities geared toward addressing the social problems prevailing in a society.
Filatotchev, Igor and Chizu Nakajima. “Corporate Governance, Responsible Managerial Behaviour, and Corporate Social Responsibility: Organisational Efficiency versus Organisation Legitimacy.” Academy of Management Perspectives. 28.3 (2014): 289-306. Business Source Premier. Web.
Get your first paper with 15% OFF
Porter, Michael E. and Mark R. Kramer. “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility.” Harvard Business Review. 84.12 (2006): 1-16. Print.
Rice, Andy. “Jaguar Land Lover and HSBC using CSR to Ensure Brand Success in China.” The Guardian 21 Aug. 2014. Web. <https://www.theguardian.com/sustainable-business/2014/aug/21/china-csr-corporate-social-responsibility-jaguar-land-rover-hsbc>.