Corporate Social Responsibility in the C0-Operative Bank Essay

1. IntroductionThis identify aims to critical review the unified affectionate office (CSR) exemplifications which managers should lead every(prenominal) important(predicate) when deciding their CSR stance. The report will excessively review the corporative rim and their stakeholders regarding CSR. The report will then go on to essay and evaluate the corporative affirms CSR and honorable position.2. Corporate Social agate lineCorporate cordial business (CSR) as a topic has legitimate the attention of administrations and managers as a whole. The 1950s marked the start of the modern-day era of CSR for managers, where Howard R. Bowen (1953) defines cordial responsibilities in his publication as the businesses debt instrument to found decision and follow principles that atomic number 18 acceptable to society. However, Milton Friedman (1970) argued that tender responsibilities is for people non businesses, he claims that the only responsibility business managers should have is to use in all their resources to maximise sugar and increase sh areholders wealth (Friedman, York measure Magazine, family line 13, 1970, pp. 32-34).2.1 Carrolls CSR ModelsIn 1979, Carroll developed a neighborly responsibility modelling with a hierarchy of four responsibilities, starting from stinting, moving to legal, good and discretionary responsibilities ( obtain fig. 1.1). This CSR model talks about responsibilities which are the main areas that managers should consider when taking a stance on CSR. The summarised views of Carrolls hierarchy are businesses should strike to make gain ground as their main priority, and then complies with the rules and regulations of the jurisprudence also behave ethically and finally be good collective citizen (Carroll, 1979, p.500). The hierarchical four responsibility model was later ameliorate by Carroll in 1991 as pyramid of corporate social responsibility (see Fig. 1.2).2.2 forward-looking CSR ArgumentsAs the defin ition of CSR developed and gain more attention all over the years, more arguments over CSR began emerge. In reviewing CSR, both Goyder (2003) and Moore (2003) argued that firms claiming CSR in expectation of achieving great profitability is unethical. Firms should take up CSR only if they can ensure irrefutable imp feign on society and the environment. Even though J whizs (2003) argued that managers must not use CSR as a business strategy but should see it as an ethical stance. However, he does not believe firms taking receipts of the opportunity to make profit is unethical. (Wan Saiful wan-Jan, 2006, pp.176-184)2.3 Introduction of 3C-SR ModelIn pronounce to counter the deficiencies of previous approaches, Meehan et al (2006) devised the 3C-SR model- competitive advantage through social resources. This model claims that Corporate Responsibility (CR) is a tool to making profit not ways of reducing revenue. This model is made up of trinity inter-related components, ethical and social commitment, connection with sparkners and symmetry of behaviour. According to Meehan et al, if heed encompasses all three elements it will build a strong corporate social performance and become a good corporate citizen. (Meehan et al, 2006). However, the models has not been establish on observations and experiments, also there was no criticisms by former(a) authors. It is essential base and was not well supported.3. The Co-operative Bank and Their StakeholdersThe Co-operative slang is a part of the co-operative group, the largest consumer co-operative in the United Kingdom (UK). The bank offers a range of pecuniary services such as saving accounts, current accounts loans and overdrafts. They are an organisation that makes profit consistently while operating in a socially and environmentally responsible for(p) manner by putting their ethical motive into natural action (www.co-operativebank.co.uk).The Co-operative Bank is lovesome to the needs of all their stakeholder s (see fig 1.3). It aspires to take ordinary economic, social, environmental and cultural needs of their stakeholders. Stakeholder of a company is anyone who has can be affected or can affect the companys actions or decisions. The co-operative bank acts quickly on relevant and important stakeholder concerns. Engagement with their stakeholders is an important continuous activity. The cooperative banks CSR stance of responsible pay which consists of ethical screening, financial inclusion and microfinance is important to each of their stakeholders. (Co-operative bank sustainability policy, 2010)4. THE CO-OPERATIVE blasphemeS CSR and ETHICAL STANCE ANALYSIS4.1 Sethis Three-Stage SchemaSethis three-stage schema is useful in determining and analysing the Co-operative banks adjustments of their corporate behaviour to social needs. There are three categories of social commitments social obligation, social responsibility and social responsiveness (Sethi 1975, pp. 58-64, cited Carroll, 19 79). Social obligation refers to companies behaving in response to market forces or legal restrictions. Managers of such companies only intend their response to social issues which are guided by law and the economic system. Social responsibility is corporations acknowledging social protects and expectations also the importance of ethics. Whilst social responsiveness states that it is important for firms to search for ways to be socially responsibly in the continuous changing society in the abundant spend than how to react to social pressures (Sethi 1975, pp. 58-64).Co-operative bank is continuously searching for ways to be socially and ethically responsible to meet to match the dynamic social system. They are constantly coming up with ethical policies either to meet suppliers needs or customers needs. They plan to the most socially responsible business in the UK. The bank is also making profit defying their economic duty to be no-hit. (http//www.co-operative.coop/join-the-revo lution/our-plan/responsible-finance)4.2 The 3C-SR ModelEthical and Social commitmentsThis element represents the values verbal expression of social resources. This component comprises of the promises that organisation made to their stakeholders, also the ethical standards narrow pile by them which are stated in their mission statement and goals. (Meehan et al, 2006). The Co-operative bank seeks to be the leading retail bank in global financial services industry. They have been operating with values that have been handed down by the founders which are social responsibility, openness and honesty. They aim To be paying To meet customers and community needs To respond to members and give them a medium return To be an ethical leader and exemplary employer in articulate to inspire othersThe Bank is very committed to delivering value to their stakeholders. In 1992 they launched their ethical policy when the customers requested that they would like their money to be invested ethically . The policy was create to reflect customers ethical concern not that of the managers. The bank practice ethics in action by turning away businesses that are hire in unethical practices (fossil fuel extraction, child labour etc). The banks suppliers gets paid fair price and there is effective communication surrounded by them and the bank, which leads long term relationship. With the banks fantastic delivering value policy some customers and employees are yet to be satisfied. (The co-operative bank sustainability report)The Co-operative Asset Management (TCAM) ensures that there is sex balance within their banks employees and also there is no discrimination. In 2010, the bank extended this policy to other companies they do business with (The co-operative bank sustainability report, 2010, p112).Connections with partners in the value net constructNorman and Ramirez (1993, p69, cited Meehan et al) claims that a business net income gets value from a value creating system in which al l the stakeholders and the business itself work to together to create value. Meehan et al believe that if anyone of the parties fails to embrace the value network anatomical structure, then the socially oriented business model is bound to fail. If one organisation chooses to associate with another organisation, the nature of that relationship should be found on credibility on both parties, then the value structure works. In the other if on party fails to meet the commitment of the other then a stakeholder deficit will occur (see fig 1.4).The Co-operate bank ensures that their corporate customers share the same values with them as in sexual activity equality and anti-discrimination through their TCAM. There is also their ethical screening which helps them maintain the ethical finance image. The ongoing employee, members and customers survey ensure that the connection amongst them and the bank is still there (The co-operative bank sustainability report).Consistency of behaviourThe consistency element refers to organisations implementing their policy to conform to the commitments and maintain the performance in the long term. It is the behavioural component of the social resources over time and across all aspects of an organisations operation. The common source of criticism is when businesses claims to be socially responsible and fails to act responsibly towards society. (Meehan et al)The Co-operative banks ethical policies and social responsibilities have been improved to meets stakeholders needs and maintained over the years. The bank has been consistent with a gladness survey for their employees called the Voice carried out twice a year. They have also maintained their investments to their local communities and society at large over the years (The co-operative bank sustainability report). Ethical investment policy generated in 1992 is still an ongoing process for the bank (http//www.thenews.coop). In maintaining this policy, the bank is loose out on incom e resulting to a reduction in income for turning business away.5. ConclusionThis report has reviewed some of the different CSR theories and models that are important to managers when they are deciding on their CSR approaches. The report also reviewed how CSR has been evolving over the years with theories and models of different scholars.The co-operative bank engages their stakeholders in all their CSR approaches which help them to understand the stakeholders better. The bank understands the fact that a successful business occur only when all the stakeholders work together with interchangeable ethical values.Using the sethis three stage schema and the 3C-SR model to evaluate the Co-operative bank, it is quite clear that the bank is an ethically and socially responsible corporation. Even thought they are losing income and spending a lot to retain ethically and socially responsible they still insist on maintaining ethical policy. On the other hand the benefits of sustaining their eth ical policy out weight down the losses being made. The bank made a more profit in 2010 than 2009. The bank is not only using CSR as a business strategy but they are also being sensitive to all the needs of their stakeholders including positive impact the environment.REFERENCESArticlesCarroll, A.B. (1979), A Three-Dimensional abstract Model of Corporate Performance, Academy of Management round, Vol. 4, No.4, pp. 497-505Bowen, H.R. (1953), Social Responsibilities of the Businessman, Harper, newly York, NY.Carroll, A.B. (1991), The pyramid of corporate social responsibility towards the moral the moral management of organizational stakeholders, Business Horizons, July/August, pp. 39-40Carroll, A.B. (1998), The four Faces of Corporate Citizenship, Business and society Review Vol.100 No.1, pp.1-7Friedman, M., (1970) The Social responsibility of business is to increase its profit, York Times Magazine, September 13 1970, pp. 32-34).Meehan, J Meehan, K Richards, A. (2006), Corporate Soci al Responsibility the 3C-SR model, International Journal of Social Economics, Vol. 33, pp.386 398Sethi, S.P. ((1975), Dimensions of corporate social responsibility, atomic number 20 Management Review, Vol. 17, No.3, pp. 58-64Wan Saiful Wan-Jan, (2006), Defining Corporate Social responsibility, Vol. 6, discover 3-4, pp. 176-184