In this section, the role of CSR is assessed within the profit context. It is due to the reason that profit is the primary objective of a business. Profit is basically recognized as the lifeblood of any business. There are number of objectives focus in order to achieve the business vision. Hence, the most concerning objective is to earn profit. Earning a sustainable profit is essential for the business development and business growth, to protect the environment, and to deliver the good quality products to customers. It is significantly important for the organization to maximize the business profit in order to gain the competitive advantage. In addition to this CSR stands for Corporate Social Responsibility. It is the responsibility of an organization to visualize its impact on the society decisions and activities or its impact on the prospective environment and organization’s prosperity. Hence it is known as the triple bottom line of planet, people and profit. Moreover the role of CSR is not limited to the sustainable and transparent approaches but also help the business to build reputation and brand. It helps in strengthen the business community and helps to grow effectively industry. It is denoted in the study of Ioannou, (2015), that a solid business plan has been embedded into the business culture. It reflects the objectives and values of the organization by means of the proper strategic application of CSR. It helps organizations to build a sustainable and profitable future. Therefore, the role of CSR within the context of profit maximization is discussed in this study in order to identify its impact on the environmental and social responsibility.
Role of CSR in Maximizing the Profit; A Case of Nestle CSR Corporate Social Responsibility
A case study of corporate social responsibility of Nestle is focused in this study. The CSR policies of Nestle are studied under this study in order to analyze its impact on the sustainability and profitability of business. Since the era of barter system to turn into the plastic money era, the mankind all over the globe has faced a number of issues. It is denoted in the study of Schrempf (2016), the main motivation element behind this development is always been profitability. This profitability level is the primary force of any particular business. Hence, the organizations start focusing to use the concept of corporate social responsibility in order to enhance the profit of the organization. Thus, in this study the CSR pattern of Nestle has been analyzed in order to understand the claim of Nestle and CSR reality (Visser, 2015).
One of the leading world nutrition and wellness company is Nestle. It is operating in 83 countries and running 471 factories mostly in the developing state. It has been claimed by the Nestle that it protest the trust of stakeholders and customers by focusing on the strong principles. Those principles with the related policies are specified with action which is related to:
- The environment
- The consumers
- The suppliers and customers
- The employees
- The human right and labor practices
Nestle is one of the fast growing company and it focuses very concisely on the corporate social responsibilities in order to maximize its profit in the industry and it could only be possible by creating social sharing values (Day, 2014). Nestle focuses on the corporate social responsibilities to visualize its impact on the society decisions and activities or its impact on organization’s prosperity. This could help them to maximize profit. For this regard, Nestle emphasize on creating values for rural development nutrition and water. Hence, it is significantly important for the corporate activities. However, it is vigorous to its value chain.
- The focuses on waters as it is the lifeline for the people and one of the essential element of production
- The focus on rural development as it is essential to determine the farmer’s well-being, workers, and countryside communities in order to inherent the long term success for the Nestle activities of business (Lock, 2016).
- The focus on nutrition because it is the main element of health foundation and the business of Nestle is known for the enterprise of wellness, health, and nutrition.
Hence, the major Nestle contribution to the society is categorized into five major categories. These categories are signified into the various policies stated as below. Such policies will help Nestle for sustainable growth and profit maximization.
Nestle CSR Policies
Rural Development Policies
- To focus on the framework of countryside growth so that the farmers need would properly analyzed
- A proper training program is run for the growth and knowledge of the farmers
- To roll out the proper planning between the cocoa farmers and nestle cocoa plan. For this plan a proper budgeting techniques haven been focused
- They have been focusing on the proper advocate policies in order to attain the water efficiency
- They have been focusing on the proper advocate policies in order to have sustainable crosswise water operations (De Beelde, 2015).
- To raise awareness on improvement and conservation of water
Environmental sustainability policies
- To advocate the policies to improve the operations efficiency of resources
- To improve the packaging environmental performance
- To focus on the preservation of natural capital and resources such as forest
- To deliver the adequate information on the environmental aspects
People, Human Rights, and Compliance Policies
- To ensure that all stakeholders and employees can report the compliance volition
- To work against the issue of bribery and corruption
- To provide training on the environmental sustainability and business principle
- The incorporate policies to build the knowledge leadership for the nutrition prospect
- To focus on the policies to minimize the associated nutritional risk
- To encourage the advocate consumption of the products
Critical Evaluation of Nestle CSR
Although the above stated policies are contributing to society, still Nestle would not be able to deliver the 100% to the economy. The major issue analyzes the Nestle CSR policies that violets the CSR rules have been stated as follows:
- The instant closure of mass redundancies and factories outlet that hit the Nestle profits
- The trade union restriction rights by the fake supervisors
- The unfair wages discrimination have also been hitting the profit integrity
- The false global policy claiming due to the fact of no or less negotiation with union
- The trade union interference in the elections
- The freedom of assemble got banned because of the basic right issues
Hence, Nestle is analyzed as the serial offender when it comes to violation or when it comes in the international guideline and convention. Nestle have been focusing on the proper implementation of the CSR policies in order to maximize its profit. It is due to the fact the profit is the primary objective to earn the profitable growth of the organization.
In this section, a response has been incorporated on the business strategies discussion used by Nestle in order to promote the ethics and social responsibility. It is denoted in the study of Kim, (2016), that the social responsibility and business ethics are similar terminologies. Its role is to promote the business activities in effective and efficient manner. It is significantly important for the organization to maximize the business profit in order to gain the competitive advantage. It is known as the triple bottom line of planet, people and profit. Moreover the role of CSR is not limited to the sustainable and transparent approaches but also help the business to build reputation and brand. It is essential to promote ethics in the organization as it enables the organization to achieve its goals in effective and profound manner. Business ethic is recognized as the corporate ethics and it enables organizations to apply the concept of professionalism by means of professional and applied ethics. It examines the ethical principle in order to visualize the ethical principle to determine the ethical and moral problems that have been raised in the environments of business (Zhang, 2017). It helps the organization increase the business efficiency, sustainability and growth. It would only be analyzed by the proper implementation of the business ethic in the business environments. It helps organization to focus on the ethical and moral values so it would not hit the integrity of the business. In addition to this, Nestle is one of the leading world nutrition and wellness company. Nestle focuses on the corporate social responsibilities to visualize its impact on the society decisions and activities or its impact on organization’s prosperity (Kadarusman, 2018). This could help them to maximize profit. For this regard, Nestle emphasize on creating values for rural development nutrition and water. The business ethics and social responsibility role is to advance the business exercises in successful and proficient way. It is fundamentally imperative for the association to boost the business benefit so as to pick up the upper hand. It is known as the triple primary concern of planet, individuals and benefit. Additionally the part of CSR isn’t restricted to the supportable and straightforward methodologies yet in addition help the business to fabricate notoriety and brand (Cornelissen, 2017). It is fundamental to advance morals in the association as it empowers the association to accomplish its objectives in powerful and significant way. Business ethic is perceived as the corporate morals and it empowers associations to apply the idea of polished skill by methods for proficient and connected morals. It looks at the moral standard keeping in mind the end goal to envision the moral guideline to decide the moral and good issues that have been brought up in the conditions of business. It enables the association to build the business proficiency, supportability and development. It would just be broke down by the best possible execution of the business ethic in the business conditions (Favotto, 2016). It encourages association to center around the moral and good esteems so it would not hit the honesty of the business. Also, Nestle is one of the main world nourishment and health organization. Settle centers around the corporate social obligations to envision its effect on the general public choices and exercises or its effect on association’s thriving. This could help them to amplify benefit. For this respect, Nestle stress on making esteems for provincial improvement sustenance and water. Hence the business strategies followed by Nestle in order to promote and ensure the ethics and social responsibilities have been stated as follows:
Nestle focuses on the strategies of legal compliance as it is the part of the ethical responsibility in order to ensures that the Nestle have been complies with the proper and applicable regulations. The policies have been compile accurately on the basis of the define act and laws. Such act requires certifying that the financial reports are free of any untrue and misleading information. In addition to this, nestle also focuses on such compilation of legal laws in order to set forth by the exchange commission and securities to fulfill the trade dimension in proper aspect.
Nestle focuses on the strategies to meet the consumer expectations. It is due to the fact that that customers expected to be treat by the business sectors in an ethical way. It is essential to ensure that Nestle meets the ethical and legal responsibility (Rishard, 2015). It is required to focus to elaborates that customers are not overcharged for the provides services and goods. In addition to this, the customers have been fairly treated in terms of product complaints and returns. Moreover, Nestle have been working with the fair labor association in to have a fair labor practices.
Nestle focuses on the strategies of social responsible business operation as it enables the Nestle to align with the social responsibility commitment with the business goals that aligns with the external and internal business values. Hence, the external benefits help to project the positive public image. On the other hand, internal benefits help to reduce the energy bills by the use of the energy equipment.
Nestle focuses on the strategies to focus on the strategic partnership in order to broader the organization scope in terms of increasing profit. The development of strategic partnership wotj the civil societies, trade union and responsible manufactures will help the organization to achieve its goal in effective and efficient manner by maximizing the profits.
Thus, above stated business strategies are followed by Nestle in order to promote and ensure the ethics and social responsibilities (Hickle, 2017). This could help them to amplify and maximize the profit. By the means of the ethical principle Nestle visualize the ethical principle to determine the ethical and moral problems that have been raised in the environments of business and its helps Nestle to resolve such problems in effective and profound way.
In this section, a concluding argument is made by critically evaluating the selected case. It is also consider in this section about the success and failure of the CSR implementation at the operational level in order to meet the demand of the stakeholders. Profit is essentially perceived as the soul of any business. There are number of targets center keeping in mind the end goal to accomplish the business vision. Subsequently, the most concerning objective is to acquire profit. Winning a manageable profit is basic for the business improvement and business development, to secure the earth, and to convey the great quality items to clients (Phillipson, 2017). It is essentially imperative for the organization to amplify the business profit keeping in mind the end goal to pick up the upper hand. It is the obligation of an organization to envision its effect on the general public choices and exercises or its effect on the forthcoming condition and organization’s flourishing. Subsequently it is known as the triple primary concern of planet, individuals and profit (Miuller, 2018). Additionally the part of CSR isn’t constrained to the supportable and straightforward methodologies yet additionally help the business to construct notoriety and brand. It helps in fortify the business group and develops viably industry. It is indicated in the investigation of Cross, (2017),that a strong strategy for success has been installed into the business culture. It mirrors the destinations and estimations of the organization by methods for the best possible key utilization of CSR. It causes organization s to assemble a feasible and productive future. Hence, the part of CSR inside the setting of profit amplification is examined in this examination keeping in mind the end goal to recognize its effect on the natural and social duty. Hence, the major Nestle contribution to the society is categorized into the various policies. Such policies will help Nestle for sustainable growth and profit maximization. The policies centers around waters as it is the life saver for the general population and one of the basic component of creation and rural advancement as it is fundamental to decide the agriculturist’s prosperity, laborers, and wide open groups with a specific end goal to inalienable the long haul accomplishment for the Nestle exercises of business and around nourishment since it is the primary component of wellbeing establishment and the matter of Nestle is known for the endeavor of wellbeing, wellbeing, and sustenance (Khan, 2018). In addition this, Nestle focuses on the strategies of legal compliance as it is the part of the ethical responsibility in order to ensures that the Nestle have been complies with the proper and applicable regulations. Nestle focuses on the strategies to meet the consumer expectations. It is due to the fact that customers expected to be treating by the business sectors in an ethical way. Nestle focuses on the strategies to focus on the strategic partnership in order to broader the organization scope in terms of increasing profit. Nestle centers around the systems of social capable business activity as it empowers the Nestle to line up with the social duty responsibility with the business objectives that lines up with the outer and inner business esteems.
In addition to this, it is essential to determine the success and failure of the CSR implementation especially at the operational level in order to meet the stakeholders demand. It is due to the fact the success and failure of the CSR implementation would directly hit the integrity and profitability of the business. It is essential for the organization to keep the stakeholders contended and satisfied (Wie, 2018). It is possible by the successful implementation of the CSR implementation as it defines the organization to communicate effectively with stakeholders. Nestle is very concern regarding the CSR implementation as it helps Nestle to keep its stakeholder satisfied. Therefore, the role of the operational level managers is highly critical at the time of evaluating the CSR implementation results. Nestle focuses on the strategies to meet the stakeholder’s expectations. It is due to the fact that stakeholders expected to be treating by the business sectors in an ethical way. It is essential to ensure that Nestle meets the ethical and legal responsibility (Herlin, 2017). In addition to this, the customers have been fairly treated in terms of product complaints and returns. Moreover, Nestle have been working with the fair labor association in to have a fair labor practices. Furthermore, it is fundamental to decide the achievement and disappointment of the CSR execution particularly at the operational level with a specific end goal to take care of the partners demand. It is because of the reality the achievement and disappointment of the CSR usage would straightforwardly hit the honesty and benefit of the business. It is fundamental for the association to keep the partners battled and fulfilled. It is conceivable by the fruitful execution of the CSR usage as it characterizes the association to discuss viably with partners. Nestle is extremely concern viewing the CSR usage as it encourages Nestle to keep its partner fulfilled. Along these lines, the part of the operational level supervisors is exceptionally basic at the season of assessing the CSR execution comes about. Nestle centers around the methodologies to meet the partner’s desires. It is because of the way that partners anticipated that would treat by the business segments in a moral way. It is basic to guarantee that Nestle meets the moral and legitimate responsibility (Farache, 2018).
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