The concept of corporate social responsibility (CSR) has become an increasing norm that is being adopted by companies to enhance organizational behavior. Historically the concept was developed as a business approach that contributes to the sustainable development of society by delivering economic, social, and environmental benefits to all stakeholders (Leite & Padget). As a result, corporate social responsibility activities constitute an important part of doing business ethically. CSR is a concept that begins when a company starts to exist. This is because companies must behave ethically and responsibly by performing their social duties just as individuals are expected to perform social duties (Leite and Padget, 2011). Socially responsible companies have a set of policies and programs that they integrate into their business operations and make it part of their decision-making process. However, it is also important to note that corporate social responsibility is not just about the companies giving to society but also the benefits that emanate from such a relationship which include improved financial performance.
Blake Mycoskie, who traveled to Argentina in 2006, founded TOMS. Based on Hesaw, children going to school without shoes or wearing Alpargatas, Blake thought he could be in favor of the lives of children living in third-world countries (Thompson, Peteraf, Gamble, Strickland, 2018). As a way to entice potential buyers to buy a product, Mycoskiebegan not only builds a brand and creates a cause with the help of a celebrity, but also tells the story of why the company was first founded. “He founded the company based on the One for One' promise, and donated a pair of shoes for each shoe sold.” (Thompson, et al. 2018). The biggest impact on TOMS's growth is that the company has particularly benefited the company's interests. 'A separate entity called ' Friends for TOMS' focused on philanthropy and donations,' the latest asset report in 2011 was only $130,000 (Thompson, et al. 2018). This is in line with the components of a corporate social responsibility strategy: “Support, philanthropy, community service engagement, and activities to improve quality of life around the world” was done by TOMS and Blake Mycoskie (Thompson, et al. 2018).
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Mycoskie's strategy as a small business was to use social responsibility and social media to tell the story of how he entered the footwear industry. Mycoskie didn't have as much capital as its rivals Nike and Skechers. Mycoskie leveraged social media to reach over 2 million followers on Facebook and over 2 million additional users on Twitter (Peteraf et al., 2014). Mycoskie's Giving Trips program was a way for American consumers to personally travel across countries to deliver shoes to poor families. Customers were randomly chosen by TOMS' staff to participate in donation tours, and journalists often accompanied these customers when traveling to multiple countries. TOMS Shoes Company has benefited from the Giving Trips program through the social media of journalists and consumers (Peteraf, et al., 2014). TOMS' dedication to humanity, a member of the American Apparel and Footwear Association and contributing to the Environmental and Social Responsibility Committee, has attracted consumer attention (TOMS, n.d.).
For the company to successfully utilize the same concept as TOM did, it must be willing to lose money to make money. The LEGO Group is one of the most notable examples of how social responsibility can be an amazing asset for a well-known brand. Although their dedication to social impact has been rather recent (the 2014 Greenpeace Video pressured toy makers to end their 50-year partnership with Shell Global due to plans to train in the Arctic), the scope of their efforts is a Danish company. It's a shining example of the broader impact of CSR. The company was recently voted one of the best examples of social responsibility by the Reputation Institute and ranked second in the Reputation Institute's RepTrak 100, which lists the most highly rated companies in the world. In addition to partnerships with organizations such as the World Wildlife Fund, LEGO is working to reduce its carbon footprint and is committed to 100% renewable energy capacity by 2030. LEGO's Sustainable Materials Center is currently working to find sustainable alternatives to materials and packaging. LEGO has also publicly committed to high standards of ethical business practices and human rights for its employees.
TOMs has a supplier code of conduct that guides the conduct of its suppliers. Three of the ethical behavior and corporate social responsibility principles that guide its supply conduct include minimum working age, wages and benefits, and workplace health and safety and environment (Thompson, et al. 2018). Minimum Working Child labor is strictly prohibited. Supplier's employees must be at least 15 years old, and at least the minimum age to be employed by local laws in your country (Thompson, et al. 2018). This also applies to all subcontractors. This principle impacts suppliers positively as they will not have any lawsuits filed against them for employing child labor. This has a positive impact on TOMs as it reflects how the company is socially responsible.
Wages and Benefits- Supplier's employees are entitled to a full-time weekly compensation sufficient to meet basic requirements and provide some discretionary income. Suppliers must pay at least the minimum wage or the appropriate general wage, whichever is higher, comply with all legal requirements for wages, and provide ancillary benefits required by law or contract if compensation does not meet the basic requirements of workers and provides some discretionary income, each supplier must work with TOMS to take appropriate steps to gradually realize the level of compensation (Thompson, et al. 2018). This positively impacts suppliers because if employees are compensated fairly, they will be motivated to work and this increases productivity.
Workplace Health, Safety and Environment-Supplier shall provide a safe and healthy workplace environment to prevent accidents and injuries to health arising from, related to, or arising from, during work or as a result of Supplier Facility operations. Suppliers are expected to take responsible steps to mitigate the negative impact of their workplace on the environment (Thompson, et al. 2018). This positively impacts suppliers in that when companies engage in activities such as environmental sustainability they reduce costs in the long run that can be in the form of penalties.
Sustainability focuses on meeting the needs of today without compromising the ability to meet the needs of future generations. The concept of sustainability consists of three pillars: economy, environment, and society, and is informally referred to as interest, planet, and people. To minimize environmental impact, TOMS pursued a variety of sustainable practices, including providing vegan shoes, incorporating recycled bottles into products, and printing with soy ink (Thompson, et al. 2018). TOMS also blends organic canvas and recycled plastic to create comfortable and durable shoes. By utilizing natural hemp and organic cotton, TOMS has eliminated the use of pesticides and pesticides that adversely affect the environment (Thompson, et al. 2018). In addition, TOMS has supported several environmental groups such as Surfers Against Sewage, a campaign to raise awareness about excessive sewage emissions in the UK. Officially, TOMS was a member of the Textile Exchange, an organization dedicated to textile sustainability and environmental protection. These actions are consistent with sustainability because the company is meeting the needs of the children in need who need shoes without compromising the ability of the environment to meet the needs of future generations
However, the sole owner of TOM’s business is not restricted by law, so if Mycoskie is unable to pay its creditors, personal assets must also be liquidated. Increasing costs for supply, materials, and wages will account for 70% of manufacturing costs by 2020, so management can outsource to third-party logistics excluding operations (Peteraf et al., 2014). However, if the outsourced suppliers fail to abide by the code of conduct, Tom’s practices might not look sustainable.
The company is built on the promise of “One for One,” donating shoes on par with shoe purchases. The Slogan encapsulated Mycoski’s vision and corporate commitment. This is because the company gives a pair of shoes to the community for every shoe that has been bought. However, the CEO admitted that the company focuses on expansion and that it has forgotten its vital mission of using business to improve lives (The Plan B Project, 2016).
Ford is one of less than 30 companies worldwide to receive Water Security Category A in recognition of its efforts to manage water sustainably. Since 2000, the company has been working to conserve water through its Global Water Initiative, reducing its operational water use by 62.5%, saving 10.4 billion gallons of water (Mitch, 2019). Ford is meeting its goal of reducing water use by nearly three-quarters by 2020 with a long-term goal of not using drinking water in its vehicle manufacturing process. This shows that Ford is committed to environmental sustainability which helps to meet the needs of future generations just as TOMS is doing.
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