Answer To: Assessment XXXXXXXXXXCompany is Dominos) Assessment Type: Group Assignment - Report and Video...
Preeta answered on May 23 2021
Executive Summary:
This report explores CSR policies and practices and also the issues which are faced by several organizations. Since the business organizations operate in the society and community, they should try to give back to the community by discharging their responsibilities including economic, legal, ethical and philanthropy. Domino’s was chosen to find out CSR issues and to provide recommendations. The CSR issue which was found was that the company is not taking adequate measure for the health and safety of its stakeholders including its customers and employees. There is no social distancing, hand sanitizers, masks, gloves and PPT equipments, all of which are extremely important for current world situation which ahs been distorted by Covid 19 virus.
Contents
Executive Summary: 1
1. Introduction: 3
2. CSR 4
2.1 Definition of CSR: 4
2.2 Benefits of following CSR: 6
2.3 Main CSR issues: 6
3. Company Background: 8
4. The Incident: 8
5. The issues in the depicted incident: 9
6. Accounting Theories: 9
6.1 Agency Theory: 10
6.2 Institutional theory: 10
6.3 Legitimacy theory: 10
6.4 Stakeholder theory: 11
7. Recommendations: 11
8. Conclusions: 11
References: 12
1. Introduction:
Business organizations cannot operate in seclusion and need to look after the interests of its stakeholders including internal stakeholders like employees, vendors, suppliers, debtors, etc as well as external stakeholders including shareholders, environment, the community in which it is operating and the society at large. The profit motive should not be the only purpose of a business organization; rather it should try to create value for the society. So, it needs to adopt corporate social responsibility (CSR) practices and policies so that all the stakeholders of the business can prosper along with the company (Öberseder, Schlegelmilch and Murphy, 2013). Government of some countries has mandated disclosure of all the related information on the efforts of the company on CSR. But still at many places it depends on the will of the company to disclose necessary information.
The purpose of this report is to find out issues in the CSR of a corporate organization, to study those issues and to make necessary recommendations. The corporate organization which has been chosen for this report is Domino’s Pizza. Multinational companies have to follow higher level of CSR responsibilities for all the nations in which it is operating.
2. CSR
2.1 Definition of CSR:
Corporate social responsibility (CSR) can be defined to be a business model in which a company regulates itself to be socially accountable for the organization itself, its stakeholders and also for the public at large. The company tries to become a corporate citizen and evaluate all the possible impacts of its actions and activities on the stakeholders (Michelon, Pilonato and Ricceri, 2015). The operation of the company should contribute to the environment and society without having any negative impact on them. Generally a company draws its resources from the society in terms of raw materials, human resources, so it should also try to give back to the society through monetary forms like charity, philanthropy works as well as through non monetary forms like reducing emission of green house gases to protect environment, treat the employees and provide then fair wage, etc (Tai and Chuang 2014).
There are some models which can be used to describe the CSR concepts. One such model is Carroll’s CSR pyramid.
Carroll has described social responsibility as a way to carry out business in such a way so that the business gives profit economically, abide by law, ethical and socially supportive (Carroll 2016). The pyramid states the responsibility of the business based on the priority.
· Economic Responsibility – The main responsibility of the business is to make such products and services which can cater to the needs of the society and can be sold to make economic profit. Shareholders are also the stakeholders of a company and it is the responsibility of the company to give return to the shareholders. Fair salaries also need to be paid to the employees. The customers also demand a good quality product and services from the business organization. To cover these costs, it is important to make profit from the operation of the business.
· Legal Responsibility – The business need to abide by the laws and regulations of the land in which it is operating in. If an organization tries to ignore such responsibilities, then it can not only attract penalties but also there will be a blow on the reputation of the company.
· Ethical Responsibility – After the fulfillment of above responsibilities, then come the ethical responsibilities. A business should always be carried out with ethics and values. Although it is not always abiding by law to follow the ethical activities yet the stakeholders of a business and the society expect the company to follow ethics. The company should avoid exploitation of resources and should not adopt any immoral activities.
· Philanthropic Responsibility – This kind of responsibility states that the company should try to improve the life of its stakeholders including its employees and other people of society. When an organization is drawing so much resource from the local community as well as from the society in large, it should also try to give back to the community in the form of charitable works. The profit is being drawn from the society and a part of the profit is to be spent on society. Discharging such type of responsibilities is also not abiding by law but the business organization should try to do these themselves.
2.2 Benefits of following CSR:
There are several benefits of following CSR policies and practices (Sousa Filho, 2010), which are as follows:
· Brand Recognition - Investors these days are looking for sustainable investment that is for the business organizations which are looking after the need of the community and society. Consumers also prefer such brands which are contributing for them as well as other people in the society. Employees are also not just checking salary packages and are looking after...