Corporate Social Responsibility in the C0-Operative Bank Essay

1. IntroductionThis get across pushs to freshen the in integrated genial right (CSR) baby-sits which managers should consider of import when deciding their CSR military position. The report will besides canvas the corporative bound and their stakeholders regarding CSR. The report will then go on to analyse and evaluate the corporative commits CSR and effectual position.2. bodily accessible certificate of indebtedness unified amicable duty (CSR) as a discipline has received the attention of placements and managers as a whole. The mid-fifties marked the start of the modern era of CSR for managers, where Howard R. Bowen (1953) defines genial responsibilities in his publication as the businesses tariff to adopt decision and follow principles that argon acceptable to bon ton. However, Milton Friedman (1970) argued that fond responsibilities is for people not businesses, he claims that the scarce responsibility business managers should fork exclusively over is to use exclusively their resources to tap realise and increase sh argonholders riches (Friedman, York Times Magazine, September 13, 1970, pp. 32-34).2.1 Carrolls CSR ModelsIn 1979, Carroll substantial a social responsibility model with a hierarchy of quartet responsibilities, starting from economic, moving to legal, estimable and discretionary responsibilities (see figure of speech. 1.1). This CSR model talks about responsibilities which argon the main aras that managers should consider when taking a stance on CSR. The summarised views of Carrolls hierarchy ar businesses should notice to make increase as their main priority, and then complies with the rules and regulations of the law in any case behave honestly and ultimately be good corporate citizen (Carroll, 1979, p.500). The hierarchical four responsibility model was later improved by Carroll in 1991 as pyramid of corporate social responsibility (see Fig. 1.2).2.2 Modern CSR ArgumentsAs the definition of CSR essential and gain much attention over the years, more arguments over CSR began emerge. In reviewing CSR, both(prenominal) Goyder (2003) and Moore (2003) argued that firms claiming CSR in vista of achieving greater profitability is unethical. Firms should take up CSR only if they can ensure positive impact on society and the environment. Even though Jones (2003) argued that managers must not use CSR as a business dodge tho should see it as an ethical stance. However, he does not believe firms taking advantage of the opportunity to make profit is unethical. ( macabre Saiful wan-Jan, 2006, pp.176-184)2.3 Introduction of 3C-SR ModelIn order to counter the deficiencies of previous approaches, Meehan et al (2006) devised the 3C-SR model- hawkish advantage through social resources. This model claims that Corporate Responsibility (CR) is a tool to making profit not shipway of reducing revenue. This model is make up of cardinal inter-related components, ethical and social commitme nt, union with partners and body of behaviour. According to Meehan et al, if focal point encompasses every three brokers it will build a strong corporate social mental process and become a good corporate citizen. (Meehan et al, 2006). However, the models has not been based on observations and experiments, also on that point was no criticisms by an some other(prenominal) authors. It is essential base and was not well supported.3. The Co-operative Bank and Their StakeholdersThe Co-operative cuss is a part of the co-operative group, the largest consumer co-operative in the United body politic (UK). The hope offers a range of financial function such as saving accounts, current accounts loans and overdrafts. They be an validation that makes profit consistently while operating(a) in a socially and environmentally prudent manner by putting their ethics into deed (www.co-operative hope.co.uk).The Co-operative Bank is sensitive to the needfully of all their stakeholders (s ee fig 1.3). It aspires to meet prevalent economic, social, environmental and cultural take of their stakeholders. Stakeholder of a company is anyone who has can be bear upon or can affect the companys actions or decisions. The co-operative savings argot acts quickly on applicable and important stakeholder concerns. Engagement with their stakeholders is an important unremitting activity. The co-op strands CSR stance of prudent pay which consists of ethical masking piece, financial inclusion and microfinance is important to each(prenominal) of their stakeholders. (Co-operative bank sustainability policy, 2010)4. THE CO-OPERATIVE BANKS CSR and ETHICAL office ANALYSIS4.1 Sethis Three-Stage SchemaSethis three-stage schema is useful in de landmarkining and analysing the Co-operative banks adjustments of their corporate behaviour to social needs. There are three categories of social commitments social obligation, social responsibility and social responsiveness (Sethi 1975, p p. 58-64, cited Carroll, 1979). Social obligation refers to companies behaving in response to market forces or legal restrictions. Managers of such companies only limit their response to social issues which are guided by law and the economic system. Social responsibility is corporations acknowledging social esteems and expectations also the brilliance of ethics. Whilst social responsiveness states that it is important for firms to search for ways to be socially responsibly in the continuous changing society in the long ramble than how to react to social pressures (Sethi 1975, pp. 58-64).Co-operative bank is continuously inquisitory for ways to be socially and ethically obligated to meet to match the dynamic social system. They are constantly coming up with ethical policies each to meet suppliers needs or customers needs. They plan to the nearly socially responsible business in the UK. The bank is also making profit maintaining their economic duty to be successful. (http//www. co-operative.coop/join-the-revolution/our-plan/responsible-finance)4.2 The 3C-SR ModelEthical and Social commitmentsThis element represents the values aspect of social resources. This component comprises of the promises that organisation made to their stakeholders, also the ethical standards set by them which are stated in their mission mastery and goals. (Meehan et al, 2006). The Co-operative bank seeks to be the leading retail bank in global financial services industry. They have been operating with values that have been handed shine by the founders which are social responsibility, openness and honesty. They aim To be profitable To meet customers and community needs To respond to members and give them a fair increase To be an ethical leader and exemplary employer in order to inspire othersThe Bank is very move to delivering value to their stakeholders. In 1992 they launched their ethical policy when the customers pass along that they would like their money to be invested ethi cally. The policy was create to reflect customers ethical concern not that of the managers. The bank practice ethics in action by turning away businesses that are involve in unethical practices (fossil fuel extraction, child labour etc). The banks suppliers gets paid fair price and there is effective communication between them and the bank, which leads long term relationship. With the banks fantastic delivering value policy some customers and employees are yet to be satisfied. (The co-operative bank sustainability report)The Co-operative Asset trouble (TCAM) ensures that there is gender balance within their banks employees and also there is no discrimination. In 2010, the bank protracted this policy to other companies they do business with (The co-operative bank sustainability report, 2010, p112).Connections with partners in the value net operateNorman and Ramirez (1993, p69, cited Meehan et al) claims that a business network gets value from a value creating system in which all t he stakeholders and the business itself work to together to create value. Meehan et al believe that if anyone of the parties fails to tangle the value network structure, then the socially orient business model is bound to fail. If one organisation chooses to associate with another organisation, the nature of that relationship should be based on credibility on both parties, then the value structure works. In the other if on party fails to meet the commitment of the other then a stakeholder deficit will slip by (see fig 1.4).The Co-operate bank ensures that their corporate customers share the similar values with them as in gender equivalence and anti-discrimination through their TCAM. There is also their ethical screening which helps them maintain the ethical finance image. The ongoing employee, members and customers survey ensure that the connection between them and the bank is all the same there (The co-operative bank sustainability report).Consistency of behaviourThe consist ency element refers to organisations implementing their policy to conform to the commitments and maintain the performance in the long term. It is the behavioural component of the social resources over time and across all aspects of an organisations operation. The common source of criticism is when businesses claims to be socially responsible and fails to act responsibly towards society. (Meehan et al)The Co-operative banks ethical policies and social responsibilities have been improved to meets stakeholders needs and retained over the years. The bank has been consistent with a propitiation survey for their employees called the Voice carried out twice a year. They have also maintained their investments to their local communities and society at large over the years (The co-operative bank sustainability report). Ethical investment policy generated in 1992 is thus far an ongoing process for the bank (http//www.thenews.coop). In maintaining this policy, the bank is loose out on income resulting to a drop-off in income for turning business away.5. ConclusionThis report has reviewed some of the different CSR theories and models that are important to managers when they are deciding on their CSR approaches. The report also reviewed how CSR has been evolving over the years with theories and models of different scholars.The co-operative bank engages their stakeholders in all their CSR approaches which help them to understand the stakeholders better. The bank understands the fact that a successful business occur only when all the stakeholders work together with mutual ethical values. employ the sethis three stage schema and the 3C-SR model to evaluate the Co-operative bank, it is quite clear that the bank is an ethically and socially responsible corporation. Even thought they are losing income and spending a lot to remain ethically and socially responsible they still insist on maintaining ethical policy. On the other hand the benefits of sustaining their ethical polic y out weight the losses beingness made. The bank made a more profit in 2010 than 2009. The bank is not only utilise CSR as a business strategy but they are also being sensitive to all the needs of their stakeholders including positive impact the environment.REFERENCESArticlesCarroll, A.B. (1979), A cubic Conceptual Model of Corporate Performance, honorary society of Management Review, Vol. 4, No.4, pp. 497-505Bowen, H.R. (1953), Social Responsibilities of the noteman, Harper, New York, NY.Carroll, A.B. (1991), The pyramid of corporate social responsibility towards the moral the moral management of organizational stakeholders, Business Horizons, July/August, pp. 39-40Carroll, A.B. (1998), The four Faces of Corporate Citizenship, Business and society Review Vol.100 No.1, pp.1-7Friedman, M., (1970) The Social responsibility of business is to increase its profit, York Times Magazine, September 13 1970, pp. 32-34).Meehan, J Meehan, K Richards, A. (2006), Corporate Social Responsibili ty the 3C-SR model, International Journal of Social Economics, Vol. 33, pp.386 398Sethi, S.P. ((1975), Dimensions of corporate social responsibility, California Management Review, Vol. 17, No.3, pp. 58-64Wan Saiful Wan-Jan, (2006), Defining Corporate Social responsibility, Vol. 6, trend 3-4, pp. 176-184