Impacts of corporate Social Responsibility Policy

Impacts of corporate Social Responsibility Policy
Impacts of corporate Social Responsibility Policy

Impacts of corporate Social Responsibility Policy

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Impacts of corporate Social Responsibility Policy

  1. Assess how, and to what extent, corporate social responsibility can be meshed with a corporation’s obligation to maximize profits for its shareholders.

Organization recognizes the importance of social responsibility. For this reason, the organization continues to emphasize on sustainable growth, and great financial returns; while simultaneously   giving back to the communities. Organizations   main objective is to meet customer demands in the food and beverage spectrum. It has scrutinized   products which are associated with obesity and has replaced them with healthier alternatives which have lower sugar and fat content, while simultaneously meets the consumer’s demand of easily accessible snacks. To do so, organizations   invests heavily on research so as to innovate health products (Chang& Ying, 2015).

The second role of social responsibility is seen in the organization commitment to reducing its negative impact to the environment.  Organizations do so by distributing a large part of its resources in conservation of the environment.  This is done through various approaches such as packaging initiatives where the materials are recycled to minimize waste products. The use renewable sources of energy such as wind turbine, and solar energy conserves the environment. Additionally, it forms partnership with communities and other organization which focuses on the efforts of reducing environmental degradation (Tschopp & Huefner, 2014).

Organization commitment and support to its employees reflects the organization’s aspect of social responsibility. The organization goal is to support employees of diverse culture so as to engage positively with the people in the workplace as well as the community.  Through this approach, the organization gets the opportunity to grow due to increased new perspectives in the community; thereby increasing creativity at the workplace. The company acknowledges the fact that satisfied employees are the key to success and satisfied customers.  The organization collaborative culture is sustained by employing world class employees, and retaining the world class talent through employee motivation packages. It also empowers employees through training on leadership skills and effective management strategy. The employee’s turnover rates are reduced and run its operation at a reduced cost, hence making immediate revenues (O’Riordan & Fairbrass, 2013).

An organization maintains its commitment to the community and stakeholders by sustaining high principles and standards. The organization has established code of conduct which addresses ethical concerns in the company such as bribery. The organization has internal audit program, and a 24-hour line which is used to report ethical violations. This gives the organization competitive advantage. The reduction of ethical risks acts a magnet which attracts even more investors and stakeholders (Wang et al., 2014).

  1. Then, assess the ethical nature of the company you selected. You may want to use the Ethical Weather Report on page 386–387 of your text.

Corporations also share laws and regulations like normal citizens, and whenever they violate these laws, they face penalties and fines. The role of leaders in such corporations is to sustain the key ingredient in ensuring that the corporations sustain the ethical codes. Leaders act as examples and role models in ensuring that desirable conduct is maintained in their organizations. PepsiCo is an excellent example of such organization which acknowledges the role or respect, responsibility, trustworthiness and commitment to social responsibility as indicated below (Wang et al., 2014).

  1. Assess the ethical nature of the company, and provide examples of the ethical behavior or ethical structure of the company.

PepsiCo company guiding principles include; care for the customers by selling products that customers can relate to.   Respect others; embrace cultural diversity as well as meeting both the long term objective and short term goals. Through these guiding principles, PepsiCo demonstrates its social responsibility and its commitment to a sustainable environment. This way, the utility costs are reduced bringing in immediate revenues. Every company’s success is attributable to the organization relations with the stakeholders. For this reason, PepsiCo strives to adequately meet the need of its customers- the number one stakeholders. Secondly, the organization meets other stakeholder expectations by providing its services with increased integrity, honesty, transparency, and through effective communication (PepsiCo, 2010).

The employees are required to act more ethically. The managers are required to lead by example. They are expected to lead as role models so as to inspire others. To ensure the ethical nature of the organization is sustained, the organization rewards integrity, encourages ethical decision making, and avoids retaliating against the employees who are bold enough to speak up. This way, the organization creates an environment where the members feel comfortable to seek help to solve issues which are escalating (Executive leadership, 2014).

  1. Identify the major stakeholders and their roles and responsibilities in regards to the issue, and explain how their stake in the issue will motivate them to do what they need to do.

PepsiCo interacts with wide range of stakeholders who represent the community, social and environmental interests. The organization impacts on many lives through the business, and therefore welcomes any honest discussion with individuals so as to integrate corporate social responsibility. Through consumers, PepsiCo offers a wide range of products which have great taste as well as excellent nutritional value. The organization plays a responsible role in promoting its consumer’s health and wellness. The role of customers is to inform the organization about questions and comments they feel that the need addressed (The guardian, 2014).

In the community, the PepsiCo identifies their responsibility of improving the community by supporting nonprofit organization and community stewards of the environment to protect and conserve the environment. The employees are the greatest factor of PepsiCo success. The employee’s involvement in corporate social responsibility is through talent sustainability. Employees respond to the organizational health on issues such as working conditions, inclusion of diversity and ways to improve their career development. The organization retail customers contribute significantly with the marketing aspects. The retail customers also contribute on issues which need to be improved, because they act as a link between consumers and manufacturers (Executive leadership, 2014).

The investors are involved in every aspect of corporate social responsibility in the organization. This includes regular conference calls done to get the investors opinion on the issues planned for the   corporate social responsibility. The commitment of investors is sustained through the concept of sustainability, and PepsiCo applies the concept of Dow Jones Sustainability Index (DSI) annually.  The investors are attracted by the impacts of corporate social responsibility which manifests as consistent financial growth. Other stakeholders include   suppliers and associate business such as the bottlers contribute significantly to the concept of sustainable conservation of the environment (The guardian, 2014).

  1. Assess the impact of the issue on the various stakeholders, and evaluate how this issue may affect the stakeholders in the future as well as describe the stakeholders’ likely reaction to the issue.

There are four factors which set stakeholders reaction. This includes the individual social factor level, the company factor levels as well as the company factor level.  These factors have an empirical capture on the variances of the CSR reactions among the stakeholders. Stakeholder’s main aim is to provide good returns for the investment, and where they are not achieved; they pressurize the management or could simply just sell their shares. It is important to engage the stakeholders in CRS because their reaction provides insightful information which could increase the business opportunities further. The reputation of the organization is improved by practicing more charitable acts. CSR and stakeholders participation complement each other. Whereas CRS acts as source of information, stakeholder involvement guides the information provided (The guardian, 2014).

  1. Next, with regards to the issue you chose for the project, assess the impact on the chosen company and other stakeholders—including monetary, legal, and reputation-wise—of continuing the status quo versus addressing your issue via corporate policy.

Corporate social responsibility has been found to solve businesses ethical problems. Through CSR, the company benefit themselves while still benefiting the society. The importance of CSR is that it encourages innovations. Through wide interactions with individuals, it results to a huge benefit to the company and the society. Through the sustainability lens, PepsiCo has innovated new products which are healthier and using lesser energy sources, thus saving the environment and the society at large. CSR also contributes to cost saving. PepsiCo has managed to increase its profit activities which results to cost savings such as using lesser forms of energy, recycling of waste products and the use of lesser packaging materials (Executive leadership, 2014).

For instance, it is estimated that the company saved about $600,000 in 2011. CSR also contributes significantly to brand differentiation. PepsiCo has found their voice in the market using their corporate social values. CSR enables employees to concentrate on both the short term and long term goals through reflective thinking. This protects the company’s future and ensures that the company fiscal results are sustainable.  CSR also increases the customer’s engagement which enables the organization raise awareness on issues that the government needs. It promotes good customer relationship, and business- business relations through effective communication. Similarly, employee engagement will ensure that they establish the best strategy for maintaining sustainability (The guardian, 2014).

  1. Assess the potential costs and benefits for the various stakeholders in addressing the issue through corporate policy, and quantify the cost and benefits of addressing the issue based on cited research and references.

PepsiCo is a leading global food as well as beverage company which records $65 billion.  The portfolio consists of about 22 brands which generate about $1 billion annually. The main business products enjoyed across the world including; the Quaker, Gatorade, Tropicana, Pepsi-Cola and Frito-Lay. The massive growth in PepsiCo  is attributable to the unique commitment of  employees  to sustain the organization growth (commitment performance)  coupled with the increased  innovative approaches to reduce the impact  on the environment; offer a great working environment to the employees and  increased respect to support the stakeholders and the communities  the organization operates in. The company operations are guided by the corporate social responsibility (PepsiCo, 2010).


PepsiCo. (2010). PepsiCo’s journey toward an ethical and socially responsible culture. Retrieved from

Executive leadership. (2014). Pepsi CEO’s emphasis on ethics pays off. Retrieved from

The guardian. (2014). Charity ethical investments push corporate such as PepsiCo on morals. Retrieved from

Chang, K., Kim, I., & Li, Y. (2013). The Heterogeneous Impact of Corporate Social Responsibility Activities That Target Different Stakeholders. Journal Of Business Ethics, 125(2), 211-234. doi:10.1007/s10551-013-1895-8

O’Riordan, L., & Fairbrass, J. (2013). Managing CSR Stakeholder Engagement: A New Conceptual Framework. Journal Of Business Ethics, 125(1), 121-145. doi:10.1007/s10551-013-1913-x

Tschopp, D., & Huefner, R. (2014). Comparing the Evolution of CSR Reporting to that of Financial Reporting. Journal Of Business Ethics, 127(3), 565-577. doi:10.1007/s10551-014-2054-6

Wang, S., Gao, Y., Hodgkinson, G., Rousseau, D., & Flood, P. (2014). Opening the Black Box of CSR Decision Making: A Policy-Capturing Study of Charitable Donation Decisions in China. Journal Of Business Ethics, 128(3), 665-683. doi:10.1007/s10551-014-2123-x

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