The Challenges Of Corporate Social Responsibility Commerce Essay Example

essential function it performs for a variety of stakeholders and

We always rely on corporations for job creation; much of our community well-being; the standard of living we enjoy; the tax base for essential municipal, state, and national services; and our needs for banking and financial services, insurance, transportation, communication, utilities, entertainment, and a growing proportion of healthcare.

The corporate signifier of concern holds the ability to accomplish advantageous achievements for society. These accomplishments include driving economic growth, advancing international trade, and innovating new technology. Global corporations represent the majority of the top 100 largest economies globally. The top 200 companies worldwide contribute over a quarter of global economic activity and possess double the economic influence compared to the bottom four-fifths of the population. Additionally, approximately one-third of global trade involves transactions between entities within the same company. (Source: New York, McGraw hill, 1966).

There is increasing worry over the significant influence held by corporations, as their actions can greatly affect humanity, communities, and the entire planet. This accountability is often referred to as the Iron Law of Responsibility. As per the "iron law of responsibility," individuals who do not use their power in a socially responsible manner are destined to lose it eventually (this concept was first introduced in Keith Davis and Robert Blomstorm's book, Business and its Environment; McGraw-Hill 1966).

With the advancement of technology, such as planetary computing machine webs, instantaneous commercial minutess, and the exponential increase in aggregation and storage of information, the world is becoming more connected. This has resulted in the entire planet becoming stakeholders in all corporations, impacting societies on a global

scale. As a result, societal responsibility has become a universal expectation.

Corporate Social Responsibility of Grammenphone (GP) in Bangladesh:

Grammenphone, also known as GP, established itself as the leading telecommunications service provider in Bangladesh when it started its operations in June 1998.

Grammenphone is the largest cellular operator in the state, with over 20 million subscribers (as of June 2009). It is a joint venture between Telenor and Grameen telecom corporation, a non-profit sister concern of the internationally acclaimed Microfinance organisation and community development bank Grameen bank. Telenor, the largest telecommunications company in Norway, owns 62% of Grammenphone while Grameen Telecom owns the remaining 38%. Grammenphone was the first company to introduce 'GSM engineering' in Bangladesh.

Grameenphone, the telecommunications company, has not only established the first 24-hour call centre to support its customers, but also strives to provide affordable telephone services to the entire population of Bangladesh. Their motto "Stay Close" reflects their commitment to connect with people and build relationships based on trust, not just ensuring connectivity. Grameenphone believes that good development goes hand in hand with good business, and they prioritize moving the country forward while maintaining their business focus. This approach extends to their subscribers, business partners, employees, shareholders, and the wider community.

Grameen phone's partnership with Bangladesh is centered on achieving shared economic and societal objectives. This includes promoting ethical and responsible corporate behavior, as well as a dedication to addressing the country's development needs for the betterment of society. The primary strategy of GP is to collaborate with Bangladesh in meeting the Millennium Development Goals by 2015. Their social investment efforts are concentrated in four key areas linked to these goals.

Poverty

alleviation:

Grameen phone, in conjunction with 'Grameen Bank,' offers assistance to impoverished villagers in Bangladesh by providing small financial loans that empower them to establish their own homes or businesses. These loans specifically target entrepreneurs who are ineligible for traditional bank loans due to their impoverished status.

Dr. Yunus, the founder of Grameen Bank, received the Nobel Peace Prize in 2006 for his outstanding contributions.

Healthcare:

Grammenphone and Sightsavers International organized a free Eye Camp at Government Gouronodi University College, Barisal on March 13, 2008.

This is the 7th Eye Camp, organized by Grameenphone and Sightsavers International, aimed at providing free eye-care services to economically deprived people in rural parts of Bangladesh with limited access to quality healthcare. The Dhaka Progressive Lions Eye Hospital (DPLEH), Takerhat, Madaripur, is the local partner for this camp. Grameenphone's commitment to their social responsibilities is evident through their efforts. They believe that their dedication to developing healthcare for underserved populations will not only benefit those in need but also improve their financial performance by attracting new customers in the long run.

Authorization:

According to the UNDP HDI study (2006), Bangladesh is ranked 137th out of 177 countries in terms of its average progress in human development. This ranking takes into account factors such as life expectancy, adult literacy, enrollment rates for primary, secondary, and tertiary education, as well as Buying Power Parity (PPP). Additionally, it is worth noting that half of the population in Bangladesh lives below the poverty line, meaning they earn less than one dollar per day. The main reasons behind this situation are income inequality, limited access to resources and information, and inadequate infrastructure. Particularly in rural

communities within Bangladesh, there continues to be significant deprivation which makes overcoming poverty a challenging task.

Authorization is a crucial factor in reducing poverty and is a driving force for sustainable development. It involves empowering individuals or groups to make important decisions and choices, and to translate those decisions and choices into desired actions and outcomes. This empowerment allows them to improve their lives and achieve greater comfort. GP firmly believes that they have a significant role to play in this important matter.

During their Corporate Social Responsibility (CSR) journey, Grameenphone has proudly supported the Bangladesh Special Olympics team, which achieved 71 accolades in the 2007 Special Olympic Games held in Beijing, China. Additionally, Grameenphone has provided employment opportunities in their rehabilitation process to six resilient survivors. They have also collaborated with Care Bangladesh on the Information Boat project, aiming to empower rural communities by providing digitized support materials and internet access. Furthermore, Grameenphone's CSR partnership with Ashokti Punorbshon Nibash (APON) focuses on supporting the treatment and rehabilitation of economically-disadvantaged individuals struggling with drug addiction. Grameenphone recognizes that comprehensive economic prosperity is essential for development and poverty reduction.

The purpose of Grameenphone's CSR enterprises and advanced services is to increase development chances, enhance development results, and contribute towards improving the quality of life for people in Bangladesh. Grameenphone is committed to empowering vulnerable people in the country to improve the class of their lives and create a life of their own choice.

Education:

Education is a key focus area of Grameenphone's social investments. Grameenphone aims to collaborate with the government and development agencies to achieve the Millennium Development Goal of universal primary education for all. In partnership with Grameen Shikkha,

an organization within the Grameen Bank family, Grameenphone annually provides scholarships to around 100 bright but underprivileged students at various academic levels through a scholarship fund.

Grameenphone (GP) supports several schools in Bangladesh, including Tauri Foundation, HANS, CDC, and SEID Trust, by providing educational assistance. Their goal is to help talented children with their learning process. Additionally, GP proudly partners with the Enrichment Program of 'Bishsho Shahitto Kendro' to distribute free books. Recently, GP initiated a CSR project to publish and distribute illustrated books about the Liberation War to school-going children. The aim is to inspire them with the bravery of Bangladeshi freedom fighters. GP believes in the limitless potential and resilience of the people of Bangladesh.

GP embraces the belief that every action matters in their collective journey of hope as a state. They witness the growth of new opportunities through every connection and opportunity they create within the community. The Village Phone ladies pave the way for a silent but impactful social revolution. The perseverance of survivors motivates the administration, while intellectually challenged athletes demonstrate how to render the word 'impossible' irrelevant.

Every measure inspires them to travel forward and takes them one step closer to their goal.

The importance of Corporate Social Responsibility (CSR) and its elements in corporate strategy:

Why is CSR so important? Above all, scientific research findings are increasingly clear about the crucial role of CSR in a company's long-term sustainability. Companies that solely focus on profit without considering the diverse range of stakeholders relevant to their long-term success lack sustainability. However, it is not only important to acknowledge the significance of these groups. Companies must also be capable of "connecting the dots" and

understanding how various stakeholders and meeting their needs present interconnected challenges.

For illustration, the strategic direction of human resources is connected to client satisfaction, and it is essential for companies to try to understand and address this connection.

Few CSR parts are:

Balance corporate power with responsibility: Today's business endeavor possesses significant power and influence. Many people believe that responsibility must accompany power, regardless of the holder. As previously mentioned in this assignment, this is referred to as the 'iron law of responsibility'. Businesses committed to social responsibility are aware that misuse of power may result in its loss.

Promotes long-term profits for business:

Occasionally, social initiatives undertaken by businesses yield long-term business profits.

In the case 'Barlow et Al. v. A.P. Smith Manufacturing', a New Jersey justice ruled that when a corporation donates to Princeton University, it is seen as an investment and can be considered a valid business expense. The justification for this decision is that while corporate contributions to universities may be costly initially, they can ultimately lead to a talented alumni network who may decide to work for the company in the future.

The tribunal has decided that top executives must adopt a long-term perspective and demonstrate enlightened leadership in using company finances for socially responsible initiatives. At the outset of my assignment, Grammenphone believed that their commitment to developing healthcare for underserved populations would enhance the company's financial performance by attracting new customers and garnering support from governments and public health organizations. By observing Grammenphone, we can clearly see that their business value and reputation are higher than any other organization in Bangladesh. As mentioned earlier, they have over 20 million subscribers as of June 2009. The

company's social reputation is often regarded as a crucial factor in establishing trust between the company and its stakeholders.

A house's reputation is a valuable intangible asset, as it encourages repeat purchases by loyal customers and helps attract and retain superior employees to increase productivity and improve profitability.

Corporate Social Responsibility (CSR) refers to the idea that companies should be accountable for their actions that affect people, communities, and the environment. It is believed that businesses must recognize their considerable influence and utilize it for the betterment of society. Although CSR remains a topic of debate, proponents argue that its benefits encompass preventing government regulation, fostering long-term profitability for the company, and bolstering its reputation.