Corporate Social Responsibility Memo Research Proposal

Corporate Social Responsibility Memo

TO: CEO, Mead Johnson Milk Powder

FROM: Vice-President of Ethics and Governance

SUBJECT: Corporate Social Responsibility: Protecting Public Health and

Working for Change

The scandal surrounding the contaminated milk has been discussed

across the world (Branigan, 2008). This has decreased our credibility as a

company. Mead Johnson Milk Powder must play a more important role in

implementing Corporate Social Responsibility. The company must make proof

of its preoccupation for the community in which it activates.

Our company finds itself in a situation where all fingers are pointing

at our competitors, and our image is associated with this scandal. However,

this situation can be turned in our favor. Although this situation may have

started as a threat to our company, it can be easily transformed in an

opportunity that we can exploit to the benefit of our company and of our

community.

However, before taking any action, one must clearly understand what

CSR means. By CSR one usually understands the company's obedience towards

law, ethical standards, and other national or international regulations. In

other words, CSR represents the responsibility revealed by the company

regarding matters like the repercussions that the company's actions have onDownload full
paper NOW! the stakeholders. The most important stakeholders for our company are

represented by customers, employees, the public, authorities, the community

in which the company activates, and the environment (Jensen, 2004).

But CSR is not limited to the situations mentioned above. CSR means

that the company, corporation, or organization in case must actively

participate in the life of the community, it must show a clear and active

interest regarding the growth of the community. Also, the company must not

make use of any unethical practices. Such practices include activities that

Research Proposal on Corporate Social Responsibility Memo Assignment

generally produce some sort of damage to the community, its members, or the

environment.

In other words, the company must include in its agenda of the decision

process activities that concern the public. Profit should not remain the

only concern of the company. Or better said, the company must avoid

following the shareholder theory and to start implementing a strategy that

is clearly based on the stakeholder theory.

Another aspect of high importance is represented by the measurement of

CSR. It is difficult to quantify the effects of CSR. The qualitative

effects of CSR implementation are much more visible (Sweeney, 2006). In our

case, visible effects of integrating CSR in our company's strategy are

intended to consist in increasing the health level of our consumers.

Once our company achieves this objective, we should orient the

company's future strategies in a direction that focuses on protecting

public health. Given the scandal surrounding our competitors and the

suspicions that are likely to be directed towards our company as well, it

will be very productive to position ourselves as a company that puts public

interest on the first position of our preoccupations.

The benefits of implementing CSR are numerous. However, they will not

produce effects immediately, as the benefits are considered to be medium

term and long term ones (BusinessLink, 2009). One of the most important

benefits of CSR is represented by the solid reputation that our company

would be able to build.

However, it takes time to build such a reputation, but the efforts

will be worth it on long term. The fact that our company would have the

reputation of a company that is always doing the right thing, that is not

always oriented towards profit only, and that is actively concerned in the

life of the community would increase the number of customers and it would

significantly increase customer loyalty (Cuizon, 2009).

It has been observed in other markets that customers prefer, or even

insists on buying their merchandise from socially responsible companies.

Individuals become more and more responsible regarding their health, their

security, or the environment. This situation should be reflected by the

companies on the market. Therefore, it is important that our companies join

the club of socially responsible companies.

In addition to this, our company could associate for certain social

projects with other companies that have already built a reputation in using

CSR. The association with such companies would transfer some of these

companies' good name to our company.

Having such a reputation is not only effective of the company's

customers, but on its current and prospective employees also. For example,

the employees recruitment process would be a easier one. Also, existing

employees tend to stay longer with the company. This further reduces human

resources costs. Other benefits are represented by increased employee

motivation and efficiency.

Public Relations benefits are not a benefit to be neglected. By

building an image as a socially responsible company, our company would be

better liked by the local and international media and would benefit from

positive press coverage. We all witnessed the negative mass-media coverage

surrounding the Sanlu situation. The same phenomenon, but on a positive

side can be attained by adopting a socially oriented position.

Another important benefit that derives from implementing CSR practices

within our company is represented by the good relationship that our company

would have with the local authorities. Investors are also influenced by the

company's reputation. Also, a good reputation could help our company in any

potential scandals that might affect our company if associated with the

negative image of our competitors. This is the case of the contaminated

milk (ChinaCSR, 2009).

Given the context created by the contaminated milk scandal, it is

imperative that our company takes immediate action towards including CSR in

the company's policy. Just dissociating ourselves from the issue and from

other companies that are suspected of having marketed contaminated milk

will not be enough for eliminating doubt from the mind of the customer.

Certain damage might have already been done.

Implementing CSR practices in our activity will not be a short term

process. There will also be costs involved. Even so, it is by far more

important to invest in CSR and to build a strong reputation for our company

than to invest in advertising, for example.

Another direction that our company should follow regarding this

subject consists in the fact that the process could be implemented easier

if our company collaborates with other companies operating on the Chinese

market, companies that have already made proof of the benefits determined

by CSR.

Some voices have agreed upon the fact that companies should not invest

in CSR and that the public good should be left for the authorities and for

the political leaders. But practice has clearly proved that companies

investing in CSR are better seen by the public in general and their

customers in particular, they are differently addressed by their

competitors, and they are better seen by the authorities, which clearly

makes it easier for such companies to develop their activity.

Even more, since other companies have been successful at implementing

CSR practices, not getting involved in social related projects would be a

minus for our company. One of the factors that influence the success of

such a strategy is represented by properly selecting the right causes for

our company to get involved in.

In other words, the company cannot address any type of social issues,

as it may not prove to be effective for our company. Therefore, it is

recommended that our company starts implementing CSR practices by

addressing the matter of public health. Given the object of activity of our

company, public health is the main target that should be addressed.

Another area in which our company could develop social responsibility

is represented by the welfare of children. This area is also in close

connection with our company's object of activity.

Also, the company should address the environmental issue also. The

reason behind this statement relies on the fact that more and more people

are environmentally-oriented. As mentioned above, customers tend to insists… [END OF PREVIEW] . . . READ MORE