Enrons Organizational Culture Enron - 1643 Words

Enron: [Don’t] Ask Why During the year 2000, Enron was exceeding all expectations, its stock was through the roof, and the company seemed to be on top of the world. The next year Enron declared bankruptcy. So how did a company rise and fall so quickly? The key in analysing this question lies in Enron’s organizational culture, which is defined as â€Å"a shared meaning held by members distinguishing an organization† (Robbins and Judge, Essentials of Organizational Behavior, 269). During its prime, Enron appeared to be a successful and innovative company, but in reality was a company rooted in an organizational culture of corruption and greed. The five culture dimensions of stability, risk taking and innovation, attention to detail, outcome orientation, and aggressiveness are key to understanding how unethical behavior became such a problem at Enron. Before going into an analysis on the organizational culture at Enron, I will first elaborate on the severity of the unethical behavior that existed at Enron. The problem can best be shown in the words of an Enron employee who said â€Å"If I’m going to my boss’s office to talk about compensation, and if I step on some guy’s throat and that doubles it, then I’ll stomp on that guy’s throat†(Enron: The Smartest Guys in the Room). This culture of greed and corruption can also be seen through Enron’s mark to market accounting system, in which Enron cashed in on ideas and â€Å"future profits† without actually making anything. Furthermore,Show MoreRelatedOrganizational Culture : The Smartest Guys Of The Room1649 Words   |  7 PagesJudge, organizational culture is, â€Å"a system of shared meaning held by members that distinguishes the organization from other organizations† (Robbins 249). A strong organizational culture is on e whose organization’s core values are both intensely held and widely shared. After viewing Enron: The Smartest Guys in the Room, it is obvious that Enron had not only an organizational culture that was strong, but one that was extreme and aggressive. This aggressive and strong organizational culture discouragedRead MoreEssay on CaseAssignment21409 Words   |  6 PagesAssignment: Enron Case 9 Yesenia Garcia BUSI 472- B07 LUO Introduction In 1985 Ken Lay took over a couple of big name gas pipeline companies that came together and thus the infamous Enron Corporation began. They offered a variety of services that were not limited to natural gas but also included electricity, communications, and many energy related services. Together, CEO Jeffrey Skilling, Chairman Ken Lay, and CFO Andrew Fastow were able to bring transformation to Enron. They createdRead MoreFailure Of Responsible Management : Enron Corporation1645 Words   |  7 Pageswhich failure of responsible management. The Enron Corporation is an example, because Enron event is the typical case for organization failure of responsible management In the end of 2001, Enron scandal has been disclosure, Enron stock prices slumped, and its financial tricks was exposed. The Securities and Exchange Commission (SEC) began survey of company s records. Enron’s auditor ‘Arthur Andersen ‘destroys relevant documents. (Ailon, G. 2011) Enron was bankruptcy in December 2001, and became theRead MoreRise and Fall of Enron Essay872 Words   |  4 PagesThe rise and fall of Enron is a company that was lead to its own demise by it’s own leadership and ill business decisions. The motivational theories explained from the readings of Organization Behavior can correlate with the failure of Enron’s internal organization. Even though a company may appear to display successful business practices, the influence of leadership through management can ultimately lead the company to fail. Enron’s code of ethics prided itself on four key values; respect, integrityRead MoreThe Organization Behaviors Of Enron Essay1390 Words   |  6 PagesThe Organization Behaviors of Enron Introduction Enron is considered America’s largest corporate failure in history and is a story about greed, fraud, and human tragedy. In 1986, Houston National Gas and Internorth, a natural gas pipeline company, merged to create Enron with Ken Lay as the chair and chief executive officer (CEO). Lay transformed the company into a high tech global operation that traded water, energy, broadband, and electricity. In less than a year, problems arose of fraud andRead MoreEnron s Ethical Meltdown : Enron1097 Words   |  5 PagesReichart Extra Credit for Final September 6, 2016 Enron the Smartest Guys in the Room Question 1 Summarize 1 one page how you would explain Enron’s ethical meltdown: Enron was an energy company founded by Kenneth Lay in 1985 through a merger of vast networks of natural gas lines. Enron specialized in wholesale, natural gas, and electricity, and made its money as a wholesaler between suppliers and customers rather than actually owning any. Enron in fact didn’t own any assets, which made their accountingRead MoreComm101 Tutorial1 Essay858 Words   |  4 Pagesï » ¿Comm101 Tutorial 1) What were the individual factors that contributed to the failure of Enron? Briefly explain two key factors. Enron collapsed in large part because of the unethical practices of its executives. Egoism (Self interest) was one of the major factors contributed to the failure of Enron. Enron’s executives put their own interests above those of their employees, company and the public, and failed to exercise proper oversight or shoulder responsibility for ethical failings. They allowedRead MoreThe Impact Of Organizational Culture On Enron s Predicament And Understands How These Behaviors Were Cultivated And Reinforced1460 Words   |  6 PagesThe tale of Enron presents a unique perspective on success. In the short span of 24 months, Enron transformed from being the top firm in its industry to one that filed for bankruptcy. The reflection about how the tides changed in such a short period uncovers many surprising truths. In its glory days Enron beamed billion dollar profits each quarter, however this success was all a part of an elaborate scheme. Behind the veil of smoke and mirrors was a se ries of deceptive and unethical accounting practicesRead MoreEnrons Ethical Dilemma1118 Words   |  4 Pagesï » ¿Enrons Ethical Dilemma: Ethical and moral issues have received substantial focus in the modern society because of the recent cases in which huge corporations with big profits and earnings have faced bankruptcy. Enron is an example of corporations that have faced bankruptcy in the recent past because of the numerous problems it had with federal and state governments for manipulation of financial statements. While these problems are not only attributed to organizational issues, accounting firmsRead MoreA Discussion On Ethics And Law Essay1635 Words   |  7 Pages Enron, a Discussion on Ethics and Law Leadership’s Role in Ethical Dilemma As documented in a promotional video for Enron, Kenneth Lay states: â€Å"Enron is a company that deals with everyone with absolute integrity. We play by all the rules. . . We want people to leave a transaction with Enron thinking they have been dealt with in the highest possible way, as far as integrity and truthfulness and really doing our business right.† (Enron Vision and Values, 1998, 3:32) Whereas this message was intended

Prevention And The Prevention Of Cancer - 1451 Words

In an attempt to keep anyone from wasting their time reading an article that does not apply to them we need to clearly define the subject of this article. If you are comfortable with waiting for a miracle drug to cure cancer, expecting that early detection through any number of exams at your physicians office followed by chemotherapy in an attempt to kill the now detectable cancer cells, then this article is not for you. If however, you would prefer to avoid cancer totally by preventing it before it starts, then please read on. When addressing nutrition and the prevention of cancer one of the hottest topics in this arena at this time are antioxidants. The primary reason that antioxidants have received increasing attention is based on the very nature of cancer cells themselves, how they are started and more importantly how they can be eliminated before becoming detectable. For most forms of cancer, they get their start when your cell s DNA becomes damage in some form. Keep in mind that your body is generating new cells on a daily basis and that these new cells are being created based on the blue print of how they should be constructed. That blue print is your DNA. When your DNA has become damaged or during the creation process of these new cells they come in contact with free radicals they are damaged. Unchecked that damage begins going through an uncontrolled growth and at some point this once damaged cells has now become a tumor. While there is a lot of talk aboutShow MoreRelatedPrevention Persuasive Essay : Cancer Prevention941 Words   |  4 PagesBiology B Cancer Prevention Persuasive Essay Everyday, an abundance of people ask what they can do to prevent themselves from especially getting cancer. Cancer, very similar to the steps of mitosis, occurs when cells divide uncontrollably. It starts by how a cell or a group of cells doesn’t follow the body’s typical growth controls. Cancer is hard to detect in the early stages due to the fact that it produces very few symptoms. Many rumors go around about what you can do to reduce cancer, but whatRead MoreCancer Prevention Essay1344 Words   |  6 PagesSteps in Cancer Prevention Sherri Joiner 156 08-02-2012 Farrah Hilton Steps in Cancer Prevention Cancer Preventions â€Å"Cancer† is a word that no one wants to hear when presenting to a doctor’s office or as a diagnosis for any family members. It is not one disease, but many diseases that affect many Americans each day. It is non-discriminatory and can affect anyone from infants to adults. According to â€Å"The National Cancer Institute† (n.d.), there will be an estimatedRead MoreOncology Cancer Prevention977 Words   |  4 Pagesrather mobile and active in their home life. However, during and after treatment their physical strength and mobility can be affected. The purpose of this paper is to address the quality improvement issue of oncology patient falls and improving prevention during their hospital admission. Define Phase The majority of patients initially admitted for chemotherapy treatment tend to be rather mobile and active in their home life. However, during and after treatment their physical strength and mobilityRead MoreThe Causes And Preventions Of Cancer1773 Words   |  8 PagesCANCER†¦.the scariest word a doctor can say. There are many causes and preventions of cancer. I picked this topic because my step-dad has battled cancer 3 times. He was diagnosed with brain cancer just a couple months before the NFL draft that he was participating in. It was a rough time for him, getting diagnosed with brain cancer right before the biggest moment in his life. He is our walking miracle. Cancer is an abnormal cell function that starts to grow out of control. Cancer is the 2ndRead MoreBreast Cancer And Cancer Prevention2347 Words   |  10 Pages INTRODUCTION Statistics indicate that breast cancer-related complications are among the top causes of death among women for over 23% of all women’s deaths in the world (Donepudi et al., 2014). The great cases of breast cancer are attributed to lack of information on and hard data on the disease, especially on early diagnosis and treatment options. In America, breast cancer is among the top causes of cancer-related deaths, and the mortality rate is relatively high as compared to the neighboring countriesRead MoreThe Awareness Of Cancer Prevention Essay1986 Words   |  8 PagesIntroduction As the focus of health care switches from acute care to a community approach, one of the prevalent concerns is cancer prevention. In Community Health Area 4 (CH4), â€Å"malignant neoplasms† account for 14.5% of all mortalities (Vancouver Costal Health [VCH], 2013, p. 57). A significant cause of cancer is Human Papillomavirus (HPV) infection which can be prevented by immunization prior to sexual activity. This paper will focus on the adolescent population (grade 6 to 12) that receivesRead MoreThe Prevention Of Lung Cancer1943 Words   |  8 Pagesdetect lung cancer in the earliest stages out of four stage. Every day, there is patients who continue living life undetected for lung cancer, and due to this, they have a chance to end up in a troubling stage four lung cancer. Stage four lung cancer is one that cannot be stopped any longer. The person’s life could be prolonged, but they cannot cure it forever. Whereas smokers are the main target for lung cancer screening, non-smokers should get screenings as well. The American Cancer Society considersRead MoreThe Prevention Of Cervical Cancer Essay1521 Words   |  7 Pagesrelated to diseases. Therefore,Ministry of Health in NZ is mainly focus on early detection of diseases especially in diagnosing cancer. From that one of the foremost programme allied to women cancer is cervical cancer screening in Pacific island woman. Cervical cancer is the most leading disease problem in NZ which is more in the pacific area .Cervical cancer is the cancer of the cervix. It is a preventable disease which is detected in early. In NZ the rate of screening is still increasingRead MoreThe Prevention Of Breast Cancer Essay1096 Words   |  5 PagesBreast cancer. Many neoplastic deaths have been witnessed because of the Breast cancer. It holds the stats of effecting about 10% of the women all over the world at some stage of their life [1]. The threat of Breast cancer starts from the puberty stage and rises grad ually till the peri- menopausal years when it has reached to its maximum level of occurrence [2] . Speaking about the statistics in United States alone one in eight women over their lifetime has the risk of developing breast cancer. It isRead MorePrimary Prevention of Breast Cancer1192 Words   |  5 Pagestopic related to primary prevention, secondary prevention, or tertiary care. Explain why this is an important topic of discussion based on your personal belief, and based on valid research. Paper should be 1.5 – 2 pages. APA format must be followed. Detailed assignment information will be provided. Breast cancer is the most common form of cancer in women and the 2nd most leading cause of their death. It is estimated that 1 in 8 women will be diagnosed with breast cancer in their life time and it

Silence Speaks Louder Than Words free essay sample

As companies to a greater extend are held account for the social consequences of their business activities, the pressure to be socially responsible has created a tension between business and society and caused companies to think of CSR in generic ways. In fact, the most common corporate response has been neither strategic, nor operational, but cosmetic; public relations and media campaigns, the centrepieces of which are often glossy CSR reports that showcase companies’ socially and environmentally good deeds. However, the extensive use of CSR for marketing ommunication has caused consumers to question the motivation behind the actions and resulted in increased scepticism and cynicism toward companies’ CSR messages. To gain an understanding of how companies can avoid this consumer scepticism and communicate a credible CSR message, this thesis explores the field of CSR and identifies the benefits as well as shortcomings of the various communication tools. Furthermore, it seeks to examine how Noir, a company highly recognised for its sustainable business model, has chosen to communicate about its CSR engagement. We will write a custom essay sample on Silence Speaks Louder Than Words or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As a consequence of this development, it has now become common business practice to publish corporate literature and marketing communication material giving details on CSR activities as a way of showing consideration and recognition of the companies’ various stakeholders. In fact, non-financial reporting has evolved to such a degree that companies now produce specific CSR reports in order to â€Å"showcase† their engagement in social causes (Tench Yeomans, 2006). However, studies have found the use of CSR engagement for marketing communication purposes distasteful to some consumers (Drumwright, 1996). Some academics even argue that this approach to CSR is unfortunate as it creates a tension between business and society. According to their view, the pressure to be socially responsible causes companies to think of CSR in generic ways and pit businesses against society, even though the two are highly interdependent (Porter Kramer, 2006). Acknowledging this interdependency, companies have to a greater extend come to recognise CSR as central to core business activities rather than peripheral considerations associated with philanthropy. In fact, some academics argue that, by integrating CSR into the frameworks that guide core business practices, companies can gain a competitive advantage and, at the same time, overcome the increasing consumer scepticism and cynicism towards companies’ CSR messages. However, if a company has managed to fully integrate CSR into the core of its business principles, the question of how to avoid consumer scepticism and communicate a credible CSR message still remains. ? 5? Problem Statement (Gro Lea) Integrating ethical fashion with sexy and edgy designs, the Danish fashion company Noir is recognised for driving a sustainable business model based on Corporate Social Responsibility principles (Wong, 2009). Therefore, Noir appears to be a perfect example of a company that has succeeded in integrating CSR into its core framework and managed to overcome consumer scepticism by applying a different communication strategy. In this thesis, we therefore find it particularly interesting to investigate how Noir communicates its CSR engagement, why the company chooses to do so, and if this communication strategy is effective. In order to answer these questions, we will make an in-depth analysis of Noir’s corporate websites and subsequently conduct a quantitative study, since this will give us an indication of the actual effectiveness of the company’s communication efforts. Method (Gro Lea) Overall, our thesis is based on a hermeneutical foundation, since hermeneutics refers to the study of interpretation theory (Palmer, 1969). In this paper, we choose to base our analysis on methodological as well as philosophical hermeneutics in order to interpret the intentions of the sender and subsequently analyse how the sender’s messages are received. In the analytical part of the thesis, we wish to reveal the meaning, which the sender has injected into the texts of the websites in order to gain an in-dept understanding and interpretation of the texts from the senders’ point of view (Palmer, 1969). Hence, we apply the scientific method of methodological hermeneutics. However, in our discussion, we acknowledge the fact that texts hold a potentiality of meanings and that individuals construct interpretations differently across cultures and countries. Therefore, we base our research on a philosophical hermeneutical foundation, since we in our own empirical research focus on how consumers receive and interpret Noir’s messages. ? 6? Theory and Structure (Gro Lea) This thesis is divided into three different parts: a theoretical part, an analytical part, and a discussion. The Theoretical Part In the first part of the thesis, we present and discuss the three dominant approaches to CSR from a theoretical perspective in order to gain a better understanding of the concept. To gain a deeper understanding of the relation between CSR and branding and discuss how a company can benefit from integrating CSR in its branding strategies, we have included the work of Fan (2005) since it explores the concept of ethical branding and its link to corporate reputation. As mentioned previously, we acknowledge that CSR and communication about it is different and can be perceived differently across cultures. Therefore, we include Maignan (2001), who compares consumers’ understanding of and reaction to CSR in different countries. Finally, to end this theoretical part of the thesis, we pay attention to Morsing Schultz’s (2006) research based on data from a national reputation survey in Denmark, Norway, and Sweden, since it highlights the CSR communication challenges companies face when operating in Scandinavian countries. ? 7? The Analytical Part As mentioned previously, we will use Noir as a case study. Therefore, we open the second part of the thesis by making a short presentation of Noir and analysing the company’s CSR strategy. More specifically, we do this by drawing on Porter Kramer’s theoretical framework of strategic CSR. In order to determine how companies can engage in CSR in a credible manner and thereby avoid consumer scepticism, we will make an in-depth analysis of Noir and Illuminati II’s websites. Our method builds on the work of Askehave Nielsen (2005) as their theoretical framework is based on research related to websites. More specifically, their framework is based on the Swalesian genre model, which operates with the otion of communicative purpose, move structures, and rhetorical strategies. According to this model, a text contains different visual and textual rhetorical strategies in order to realise different moves. Subsequent analysis of these moves will lead to an understanding of the overall communicative purpose of the text. However, since the original genre model primarily focuses on texts, Askehave Nielsen (2005) include the general characteristics of websites and thereby introduce a genre model that captures the essence of text and medium simultaneously. In order to identify the visual and textual rhetorical strategies applied on the two websites, we will include Aristotle’s Rhetoric, which focuses on the different appeals a sender can use in order to persuade an audience; Ethos (credibility), Pathos (emotion), and Logos (logic) (Corbett,1971). In relation to the textual part, we pay special attention to Stillar’s (1998) theoretical framework that builds on Halliday’s Register Analysis since it help identify the linguistic structures and functions of texts. In addition, this Register Analysis recognises that linguistic structures simultaneously function to represent experiences of the world, construct social relationships among the participants in the discourse, and create text that coheres with its context. In addition to Halliday’s Register Analysis, we find the work of Pollach (2005) particularly interesting as it is based on Halliday’s framework. More specifically, Pollach (2005) analyses the linguistic structures and functions different companies have applied in order to enhance message credibility and improve their selfpresentation on the WWW. 8? In relation to the visual part of the analysis, we primarily use the visual analysis tools offered by Kress Van Leeuwen (2006). In their framework, they operate with the Ideational, the Interpersonal, and the Textual Metafunction. Whereas the Ideational Metafunction deals with the different choices or different ways in which objects and their relation to other objects can be represented in an image, the Interpersonal Metafunction serves to project the relations between the producer and the receiver in order to present a particular social relation between the two. Finally, the Textual Metafunction, also referred to as composition, attempts to identify how representational and interactive element are integrated into a meaningful whole and how these elements are endowed with specific information value. Finally, we make references to Mark’s (2003) Formal Analysis as it focuses on colour and colour symbolism. Discussion In the third and final part of the thesis, we will discuss the findings of our analysis and relate the findings to the theory described previously, as this will give us an indication of why Noir has chosen its particular communication strategy. Finally, by conducting a quantitative study in the form of a questionnaire, we seek to reveal consumers’ general knowledge of Noir and its CSR engagement, determine if the perception of the brand is consistent with Noir’s desired image, since this will give us an indication of the overall effectiveness of Noir’s communication strategies. Delimitations (Gro Lea) Since the field of CSR and communication is broad and can be addressed and examined from various perspectives, we acknowledge that the perspective we have applied in this thesis leads to the delimitation of others. Branding theory and different branding techniques, for example, will not be discussed thoroughly in this thesis as we have chosen to focus on CSR and its relation to communication. However, the concept of branding will be used when discussing why companies engage in CSR and when determining how Noir wishes to be perceived as a brand. Furthermore, while acknowledging the fact that CSR and communication about it is different and can be perceived differently across cultures, we find an in-depth discussion of culture and CSR too comprehensive for this thesis. We therefore choose to only briefly reflect upon some perspectives related to culture when comparing U. S. and European consumers. As we have chosen to focus on how Noir communicates its CSR messages on its corporate website, we will avoid elaborating further on the effectiveness of other communication vehicles Noir uses. In addition, we have, in our analysis, chosen to leave out BLLACK NOIR’s website and focus entirely on Noir and Illuminati II’s websites, as Noir, being the main line, aims to target a smaller and more distinctive target audience. Since the analysis of Illuminati II’s website revealed that Illuminati II primarily aims to target other fashion companies, it would be particularly interesting to investigate how Illuminati II’s messages are received by companies in the B2B market. However, as this would be a fairly timeconsuming and extensive process, we have chosen to focus solely on the reception of Noir’s messages in the B2C market. Three Different Approaches to CSR (Lea) The discussion about what exactly CSR means and how it should be practiced is not new. Over the last 50 years, intensive debates haven taken place among academics, consultants, and corporate executives. They have created, supported or criticised related concepts such as sustainability, corporate citizenship, Triple Bottom Line, business ethics, and CSR (Marrewijk, 2003). A rich literature on CSR has emerged, however, the practical guidance it offers to managers is often unclear. In fact, the discussion appears to have caused even more confusion and put business executives in an awkward dilemma (Porter Kramer, 2006). To understand how this confusion has arisen and where corporations should go from now, it is essential to examine the primary schools of CSR, since this will provide an overview of the different approaches and arguments in the debate. Overall, academics have referred to three different approaches to CSR, each including and transcending one other, in the attempt of defining to whom an organisation is responsible (Marrewijk, 2003). The Shareholder Approach Nobel price-winning economist Milton Friedman (1970) defines CSR as â€Å"the social responsibility of a business to increase its profits† (p. 123). He argues that in order to create a successfully functioning society, institutions have to specialise. Since the corporation is an economic institution, it should therefore specialise in the economic and not the social sphere. This classical view on CSR has become known as the shareholder approach. 10? ? Some have argued that this view can be interpreted as business enterprises being concerned with CSR â€Å"only to the extend that it contributes to the aim of business, which is the creation of long-term value for owners of the business† (Marrewijk, 2003, p. 96). To companies operating from this view, the only motivation for engaging in CSR would therefore be to maximise profits in order to satisfy shareholders. Friedman’s view on CSR has been present in the discussions of CSR and business ethics since the 1970’s. Even today, his arguments separate the waters among academics. While followers of Friedman’s economic view emphasise that profits clearly are socially beneficial, since positive outcomes such as greater employment and higher wages often derive from them, others (Gallagher, 2005; Hamann, 2003) have criticised this profitoriented approach as they claim that it is outdated and fails to address some important issues that characterise the relationship between business and society today. The most common critique of Friedman’s view relates to ethics and its role in companies’ motivation and decision-making.

What is CSR To what extent is there a business case for CSR Essay Example

What is CSR? To what extent is there a business case for CSR? Essay Corporate social responsibility (CSR) has never been as important as it is in todays society. It redefines corporate values and the long term commitment between a company and all of its key constituents. The World Business Council for Sustainable Development (2000) characterizes CSR as the commitment of businesses to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life. In a world driven by consumer perceptions, CSR is rapidly becoming a key to success for maximizing a companys profits. Peattie (1995) suggests that CSR is the holistic management process responsible for identifying, anticipating and satisfying the requirements of customers and society in a profitable and sustainable way. Briggs Verma (2006) believes the investment of engaging CSR brings both tangible and intangible benefits such as financial returns and reputation improvements. There appears to be no doubt tha t there is a business case for CSR for a company. This essay will first identify the importance of engaging in CSR by showing examples of success and surveys conducted by third parties. Then, it will analyze how the different expectations of CSR among stakeholders of a company affect its CSR strategy. Finally it will discuss the measurement of CSR activities. CSR studies have become a trend for global companies. In its Attaining sustainable growth through corporate social responsibility survey, IBM surveyed more than 250 business executives worldwide. Many of them believe CSR can bring competitive differentiation, permission to enter new markets, and favorable positioning in the talent wars. The survey shows that 68% of the business leaders are now utilizing CSR as an opportunity for new revenue streams. In addition, 54% believe that their CSR activities are already giving them a competitive advantage over their top competitors. Andrew, C. Matten, D., (2010) found that profit maximization, enhancing corporate reputation, customer loyalty and goodwill, gaining positive media coverage, and employee retention are the key motivators for a company to engage in CSR. As suggested by the 10 benefits of CSR for businesses derived from the CSR network, engaging in CSR can bring significant synergy to a company (Briggs Verma, 2006). We will write a custom essay sample on What is CSR? To what extent is there a business case for CSR? specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on What is CSR? To what extent is there a business case for CSR? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on What is CSR? To what extent is there a business case for CSR? specifically for you FOR ONLY $16.38 $13.9/page Hire Writer CSR Networks list of 10 benefits of CSR for businesses is: 1. Increase profits 2. Access to capital 3. Reduced operating cost/ increase operating efficiency 4. Enhanced brand image and reputation 5. Increased sales and customer loyalty 6. Increased productivity and quality 7. Increased ability to attract and retain employees 8. Potentially reduced regulatory oversight 9. Reduced risk/ increased risk management 10. Keeping ahead of the market curve Indeed, companies which have high ethical standards seem to enjoy considerable commercial success. As noted by Andrew, C. ; Matten, D. (2010), developing Ethical Behavior has a significant effect on enhancing a businesss image and is a positive on sales and profits. For example, since the middle of the 1990s, Co-operative Bank has enjoyed rising profits because of its ethical stance. The management of the bank concluded that the stable growth of company is driven the banks ethical behavior or the banks ethical practices. It attracted many customers from wealthy social groups who held large, and profitable, balances with the bank. Similarly, by using sustainable resources in its factories as one of its ethical principles, Mitsubishi also gained significant financial benefits as a result. Apart from increasing profits, CSR can also help the companys access to capital. Corporate citizenships are expected by customers and investors. They attracts significant funds from ethical investors, and it also helps build the companys reputation and maintains its relationship with stakeholders. According to a survey conducted by the PR firm, Hill ; Knowlton, 71% of investors consider corporate citizenship when making investment decision. (Briggs ; Verma, 2006). In addition to the sales and profit growth, engaging in CSR sometimes can provide cost saving, enhance brand image and reputation, and increase customer loyalty. Milton Friedman (1970) claims that It is the managers responsibility to act solely in the interests of shareholders. He states three key points such as: cost savings versus differentiation, green consumerism, and the bottom of the pyramid. First, he argued that managers should maximize their companies profitability. This is economic responsibility, the bottom of the pyramid. Second, companies should promote cost savings and differentiation. By reducing energy consumption which benefits the environment, companies can also reduce overall cost structures and increase productivity. For example, Catalyst Paper Corporation, a Canadian pulp and paper company, practices CSR by applying its energy recycling system. This lowered the companys GHG emissions by 70% while reducing its energy use by 21% since 1990, thus reducing cost (Pohle ; Hittner-IBM). Moreover, CSR is one of the unique selling points (USP) for a company. For a company that provides indistinguishable business and products, this attractive USP can help the company gain market share. For instance, Starbucks sells Fairtrade coffee as a differentiation from its competitors (Andrew, C. ; Matten, D., 2010). By practicing CSR, the company builds a unique differentiation in its product and it also helps to enhance customer loyalty. Lastly, companies should apply green consumerism. As the rise of consumerism is accelerating, consumers consider morally correct operations as one of the factors in purchasing goods and services from organizations. A survey conducted by the PR firm, Hill ; Knowlton, supports the view of Milton Friedman (1970). The survey finds that 79% of Americans take corporate citizenship into account when making purchase d ecisions (Briggs ; Verma, 2006). Nowadays, reputation is a vital asset for a company. Corporations ultimately succeed or fail on the basis of public trust and support. Briggs ; Verma (2006) remarks that by not engaging in CSR, companies are not only under-managing their impact on society and the environment, but they are also under-managing their own economic self-interest. They argued that CSR is becoming an important benchmark to evaluate whether a company is well managed and reputable or not. The success story of Co-operative Bank and Mitsubishi are good examples. An ethical marketing strategy can rescue the business image of a company. US fast food giant McDonalds has faced ethical criticisms over the past three decades. The accusations included exploitations of children with its advertising, culpably responsible for cruelty to animals, strongly antipathetic to unions, paying its workers lower wages, falsely advertising its food as nutritious, and risked the health of people plunged the firm into crisis. It seems that McDonalds broke all of the social responsibility rules. As of the early 2000s, the firm changed its marketing strategy to a more ethical one, such as devotes the resource to promote the advertising campaign to build up a fresh and healthy image. Accompanying these campaigns was a range of new healthy options on a new menu. They also launched exercise and sports initiatives especially targeted at young people. After the new menu and promotions launched, McDonalds sales rebounded in the late 2000s from the slump they suffered in the early to mid-2000s. The firms commitment to good values had won back the customers successfully. (Andrew, C. Matten, D., 2010)