Planning & Strategic Management: Corporate Social Responsibility of Human Resources: Brand campaigns
Question??
Write about Nike Corporate Social Responsibility and ethical & legal risks ??
Solution
Corporate Social Responsibility has become an important parameter in each of the business unit’ scheme of operation as there is a directive from the end of the central corporate to imbibe it in the scale of operations of each of the unit’s. The initiatives that have to been taken have to encompass each of the part of the value chain of the company such that the initiatives taken will become ingrained into the processes of the organisation and will thus also aid to development of regions of strength for the entire organisation. The key to any initiative lies in its implementation and also with the monitoring of the process. This can be developed by using a suitable framework that finds application across all business units. Thus care should be taken to initiate strategic CSR activities which will have financial benefits that will accrue across functions human resources, branding and operational cost saving.
The CSR strategy has to be planned and decided, thus making sure implementation is easier to be done. In order to further the CSR strategy a framework is suggested which help business units to decide which activities to focus upon and also ensure proper implementation.
Stage 1: The 3 I model: As per the 3 I model each business unit has to decide the top three business objectives or priorities for it ensuing year after each year end closing. The model has to be applied to the purchase function of each unit to understand where purchase unit has pinned its hope on. Some of the initiatives could be establishing itself as a unit that pays attention to environmental by making sure all of the effluent from its factories as well as from that of the vendors are either completely treated or recycled for other uses. The vendors would then be encouraged to take changes to ensure thus. T he implementation part of the problem can be carried out by making sure standards are adhered, certificates for treatment of effluents are furnished regularly. The idea behind concentration on the top 3 priorities or objectives is to ensure that there is a sense of onus on the part of the function to implement the objectives. With linking of the CSR activities with the business objectives it would become extremely difficult for the function to devote time on it as a result of which the entire initiative will only sit as an agenda on discussion manual.
Initiatives like reducing energy consumption across the purchase chain of the organisation, or healthy employment conditions across its list of vendors are some of the suggestions that can be eagerly taken forward by the business units.
Ii) Senior Leadership Participation: In most of the occasions it also so happens that CSR initiatives are taken forward by the lower level executives with any managerial participation. Thus it so happens that initiatives either lose the steam or find it extremely difficult to implemented as higher leadership backing is missing .In order to overcome this situation the central corporate could ask the business units to form a CSR board. The formation of the board makes sure that adequate time and resources are committed to the CSR activities. The board would also make sure that there is an active monitoring of activities chosen for a business unit. The CSR board should report to the top level at the corporate end this will ensure urgency. The necessary spends and activities to be chosen will be ratified by the board and steps taken accordingly.
iii)Core Competency Alignment: On deciding upon a CSR initiative the business unit should make sure that the given activity aligns with the core competency of the firm. A typical case of non-alignment of strategy would be that taken by the motor company with breast cancer research initiative .Although it is a very philanthropic initiative without doubt, however it lacked any fitment with motor companies’ core competencies. For the purchase unit some of the core competencies could be finding vendors using environmental friendly low cost materials ,the business unit could thus be engaged in a activity where it funds research institutes as well as R&D centres within these firms to develop more of such items. One of the other initiatives could be funding education to the workers of its vendors thus it turn boosting its own productivity as well. The choice of the activity that aligns with the core competency has to be undertaken by the CSR Board. The board should discuss and take opinions from all ends to ensure this.
This part of the framework is extremely important and all care should be taken to ensure alignment. Without alignment there would be unnecessary allocation of funds which would not bring advantages that will accrue in any way to the business unit. With special respect to the purchase unit senior purchase managers at corporate level should be directly involved in indentifying and deciding upon the business function to concentrate upon.
iv) Branding Campaigns: It has very observed that there is strong reluctance on the part of business units to communicate the corporate responsibilities project undertaken by them. This is because there is a feeling to appear as unethical. It is to be understood that non-communication of these initiatives is as good as not undertaking the initiatives at all. The rub off that is expected out of these activities into the products would be lost. Thus, active consideration is to be taken to make sure that there is a proper and timely mechanism to communicate the initiatives. Some of the excellent examples in this case would be that of Dell according to whom any printer brought by an individual Dell would makes sure certain number of trees is planted by the organisation. This positions Dell as an environment friendly organisation as compared to its competitors lets say HP. One of the other examples that can be taken in this direction is that of ITC through its Playmate brand of notebooks.ITC made it sure to communicate that is spends 1% of the maximum retail price of the notebook to build schools and colleges to further education. Thus, it places ITC very well or positions ITC as an organisation that places as an important organisation that cares for the society. For a purchase unit at Nike enough communication is to be made to put across the message that its purchases strictly adhere to legal and ethical standards. The business units could even scout for projects in which their employees would be regularly involved, thus ensuring a sense of participation from the employees.
iv) Developing performance metrics: It is not only important to carry these activities but also to develop performance standards. The performance standards so chosen should not only address to company’s internal needs in terms of brand share, market share but should also link to the external conditions as well as like maintaining legal standards in terms of purchase behaviour or maintaining proper ethical working environment across its vendors. The measurement metrics should be discussed and developed by the corporate responsibility board. Each of the activities have to be looked at not only in terms of tangibles but would also in terms on non-tangibles that will accrue and should accrue to the organisation .In order to ensure that its vendors as well adhere to these standards either they are to be asked to furnish certifications by rating agencies or they are to be subjected to surprise checks to make sure that what is being promised is actually being delivered. The performance metrics should also be linked to overall performance of the current function of the unit. Linking the goal to performance figure would make sure that there is a timely review process that looks into the activities and their outcomes. It should be also taken into consideration that the metrics developed carefully looks into the value add of the process. Without a careful look it may so happen that certain aspects that should accrue to the unit are missed.
Thus we understand that in order makes sure that there has to be a strong urge to harness corporate responsibility to bring change into the social and environment factors in which an organisation operates. The lack of such a factory would jeopardise any initiative that is undertaken. Being a part of the purchase unit it should be also be made clear that it is not a case of internal activities only but initiatives should permeate across its vendors or inbound supply chain. The legal and ethical standards should be common across its vendors thus not only allowing uniformity but also making sure it adds value to the society and environment through the bargaining power it enjoys with its vendors.
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