Answer To: Melbourne Institute of Technology Pty Ltd CRICOS Provider No: 01545C, 03245K NSW Assessment Details...
Soumi answered on Apr 10 2021
Running Head: CSR ACTIVITIES OF 2 BANKS 1
CSR ACTIVITIES OF 2 BANKS 30
A STUDY COMPARING THE CORPORATE SOCIAL RESPONSIBILITY COMPARING TWO BANKS — COMMONWEALTH BANK OF AUSTRALIA AND AUSTRALIA AND NEW ZEALAND BANK (ANZ)
(DISSERTATION)
Abstract
The current research topic is “Corporate Social Responsibility activities of Commonwealth Bank of Australia and Australia and New Zealand Banking Group”. The two organisation shave been chosen as they are among the top banks in Australia and are actively involved in CSR activities. The aim of the research is to get an idea about CSR and its overall impact on business. One of the key objectives of the research work is to compare the CSR initiatives of both the banks and assess their effectiveness. The banks can invest more funds towards skills development along with providing sponsorship to young entrepreneurs. The funds directed towards renewable energy projects can be routed to health care projects, which will lead to increase in revenue for the future. Academic scholarships along with research projects can be financed to attract talented professional in the company along with solving various issues through such research work from sponsored scholars.
Acknowledgement
I would make use of this opportunity to thank my mentor and professor ___________________, who has been with me as a strong guiding strength throughout the completion of this dissertation. Besides, I would also want to thank my friends, who have been a great support to me. Besides, I would thank my parents for their love and encouragement. Last but not the least, I would show my gratitude towards the Almighty for His Blessings in my live.
Thanking you all.
_____________________
Table of Contents
Chapter 1: Introduction 7
1.0 Introduction 7
1.1 Background of the Research and Organisations 7
1.2 Research Rationale 7
1.3 Research Aim 8
1.4 Research Objectives 8
1.5 Significance of the Research 8
1.6 Structure of the Dissertation 9
Chapter 2: Literature Review 10
2.0 Concept of Corporate Social Responsibility 10
2.1 Significance of Corporate Social Responsibility in the context of business 10
2.2 Factors influencing the implementation of corporate social Responsibility 11
2.3 Benefits of implementing of Corporate Social Responsibility for 3P’s 11
2.4 Theories related to Corporate Social Responsibility 12
2.4.1 Triple Bottom Line (TBL) Theory 12
2.4.2 Utilitarianism Theory 12
2.4.3 Stakeholder Theory 12
2.4.4 Corporate Citizenship Theory 13
2.5 Impact of CSR on business 13
2.6 Challenges of implementing CSR 15
2.7 Conceptual Framework 16
Chapter 3: Research Methodology 17
3.0 Research Outline 17
3.1 Research Philosophy 17
3.2 Research Approach 17
3.3 Research Design 17
3.4 Research Type 18
3.5 Data Collection and Analysis 18
3.6 Ethical Considerations and Accessibility Issues 18
3.7 Reliability and Validity 18
Chapter 4: Research Questions 20
Chapter 5: Data Analysis 21
5.0 Introduction 21
5.1 Thematic Analysis 21
5.1.1 The Aspect of Planet in the 3Ps 21
5.1.2 The Aspect of People in the 3Ps 22
5.1.3 The Aspect of Profit in the 3Ps 23
5.1.4 Business Impact of CSR on Two Chosen Banks— From Annual Report 24
5.1.5 Comparing the CSR Initiatives of Both Bank-Impact of Both and which is Better and Worse 24
5.2 Summary 25
Chapter 6: Conclusion 26
6.0 Conclusion 26
6.1 Linking Findings with Aim and Objectives of the Research 26
6.2 Recommendations 26
6.3 Limitations of the Study 27
6.4 Future scope of the Research 27
References 28
Appendix 32
List of Figure and Table
Figure 1: Structure of the Dissertation 9
Figure 2: Conceptual Framework 16
Figure 3: CSR Activities Aimed Towards Planet 21
Figure 4: CSR activities aimed towards education 22
Figure 5: Profitability figures of Commonwealth Bank of Australia 24
Table 1: Timetable 32
Chapter 1: Introduction
1.0 Introduction
In the modern times, there has been an increase in the involvement of corporates in Corporate Social Responsibility (CSR) activities. This research work is being conducted on the Corporate Social Activities being performed by Commonwealth Bank of Australia and Australia and New Zealand Banking Group Limited. According to Hodge and Sousa (2018), there has been an increasing trend for CSR activities in the modern times. Therefore, this research tries to focus on the effect of such activities on the business as well as profitability of the company. The topic tries to find contribute actively towards the question that CSR is value for money or not.
1.1 Background of the Research and Organisations
CSR has been gaining due importance across the globe. The existing literature indicates the impact of CSR extensively. There has been not much study of impact of CSR on financial organisations. Thinking about the direct impact of financial industry on environment is a rare issue, as the same does not harm the environment directly. Therefore, in order to fill such a gap, this research is being done. Companies have been investing in CSR activities, but the results have not been pleasing for some of the organisations.
Australia and New Zealand Banking (ANZ) Group is the third largest bank in Australia by market capitalisation. The bank has its headquarters in Melbourne and it was established in the year 1835, almost 184 years ago. Shayne Elliot and David Gonski head the organisation (ANZ, 2018).
Commonwealth Bank of Australia is one among the top four Australian banks, which has its headquarters in Sydney and it was started in the year 1911, almost 108 years ago. Matt Comyn and Catherine Livingstone head the organisation. Both the companies are heavily involved in CSR activities aimed for development of education level and others. This research is based on the CSR activities performed by both the banks and the effect of the same on the business of the company (Commonwealth Bank of Australia, 2018).
1.2 Research Rationale
In the modern times, CSR is at the forefront of the thought process of the organisation. According to Maqbool and Zameer (2018), lot of wealth of shareholders is spent towards sustainable development of the society. However, the mentioned banks do not seem to benefiting much out of such activities. It is the notion that that higher the CSR, higher is the benefits. Therefore, it is an issue for both the banks.
As noted by Fijałkowska, Zyznarska-Dworczak and Garsztka (2018), profit is one of the part of corporate sustainability activities including people and planet. The banks are doing enough CSR activities, but the profits of the banks are decreasing. Both the banks are among the top four banks of Australia, therefore, such a scenario may affect the competitiveness of the industry.
In the case of two mentioned banks, profit is unstable According to Lundberg and Ek (2018), if the profits of the banks keeps on decreasing continuously for long time, there may be a question on the existence of the banks. This may harm the Australian Banking industry, which may have a negative effect on the economy of Australia.
This research would shed light upon the effect of CSR activities on financial organisations. The research would benefit the individuals trying to gain knowledge about the effect of CSR activities on banks. This will be providing benefits to the two banks and provide a brief view of the benefits of such activities on the business. The suggestions might help the management of both the organisations in getting an effective return out of the CSR activities.
1.3 Research Aim
The aim of the research is to get an about CSR along with its significance, evaluating the impact of CSR on both the selected organisations and suggesting suitable measures for improving overall business of Commonwealth Bank of Australia and Australia and New Zealand Banking Group.
1.4 Research Objectives
· To understand the concept of Corporate Social Responsibility and its significance in the modern times
· To evaluate critically the impact of Corporate Social Responsibility activities on Commonwealth Bank of Australia and Australia and New Zealand Banking Group
· To suggest suitable Corporate Social Responsibility strategies for improvement of overall business performance of both the banks
1.5 Significance of the Research
The current research would ensure a detailed discussion of the CSR activities performed by both the organisation mentioned above. Due attention will be paid towards both the positive and negative effects of CSR on the performance of both the organisations. This would enable the future researchers to get enough idea of the impact of CSR on financial industry, as both the selected organisation belongs to the financial services industry. If a research topic is discussed in detail, it becomes easy for the readers to use the data finding for better understanding of the topic and practical applications. The study would enable the readers to make an effective comparison of the effects of undertaking CSR on both the organisation.
1.6 Structure of the Dissertation
Figure 1: Structure of the Dissertation
(Source: Researcher)
Chapter 2: Literature Review
2.0 Concept of Corporate Social Responsibility
Corporate Social Responsibility is the duty of an organisation to maintain the accountability, business ethics and regulate themselves from harming the environment, in which such organisations operate. In other words, as stated by Soundararajan, Jamali and Spence (2018), Corporate Social Responsibility of an organisation refers to contributing something for the development of the society. An organisation absorbs the resources from the society and hence it is the duty of every organisation to give back something to the society.
It is a new concept and is being adopted by private firms at a fast pace. As noted by Carroll and Brown (2018), the concept of CSR has existed since long however, the same has gained importance in the recent times. Private companies have started giving importance to this concept due to gradual replenishment of the non-renewable resources, which they use for business operations. CSR should be the primary responsibility of corporates across the globe, as it helps in sustainable development. Therefore, it is also considered as a corporate ethical policy for companies in order to provide a platform for ethical practices and policies.
2.1 Significance of Corporate Social Responsibility in the context of business
In the modern times, the mind-set of corporates has changed from shareholder’s approach to multi-stakeholder’s approach. It indicates intelligence of the corporates, responsiveness, awareness and ethical behaviour of different stakeholders of the company. As stated by Jamali and Karam (2018), the significance of CSR lies in the handling the company with some responsibility regarding the people affected by the operations of the company.
The affected people include the employees, the customers, the suppliers, the residents of the area of operation, the investors and others. As commented by Soundararajan, Jamali and Spence (2018), in the recent times, CSR has been made a law in few of the countries. However, in some countries, the concept of CSR is still voluntary. Participation in CSR activities affects the brand image of the company positively. However, mere active participation in CSR activities does not guarantee success for the company.
However, the same help the company in gaining competitive advantage over similar companies. As argued by Jamali and Karam (2018), organisations contributing towards development of society are preferred by the customer, which provides competitive advantage even in a highly competitive market. Individuals and companies should take the responsibility and accountability of the activities, which can be achieved if such activities are socially responsible.
As noted by Soundararajan, Jamali and Spence (2018), CSR is of great significance for the company as it helps them in earning higher revenue. It is because of the increase in the social awareness of the customers and the preference of the customers towards product, which can help in development of the society. Therefore, customers prefer products and service of the companies that adhere to social norms.
2.2 Factors influencing the implementation of corporate social Responsibility
CSR has immense benefits for both the company and the society. It helps the company in attaining competitive advantage along with a positive brand image. However, the implementation of the same is not an easy task. According to Kraus, Burtscher, Vallaster and Angerer (2018), the implementation of CSR depend on a number of external and internal factors such as awareness, infrastructure, political environment, cost of implementing the policies, expected benefits out of such policies and other such factors.
As stated by Osagie, Wesselink, Runhaar and Mulder (2018), the taxation system as well as political system f the company creates problems for implementation of CSR policies. In addition to that, the expense of implementing socially favourable infrastructure is also high. On the other hand, there is support by the government for implementation of healthy CSR policies. Lack of awareness among the managers also leads to adoption of unethical practices by the managers of the company.
As supported by Latan, Jabbour, De Sousa, Wamba and Shahbaz (2018), increasing awareness of CSR policies can imbibe positive thinking among individual regarding CSR. Finally, availing funding and sponsorships for supporting the CSR infrastructure is difficult. However, effective funding in such areas can lead to effective implementation of CSR policies on the part of the companies.
2.3 Benefits of implementing of Corporate Social Responsibility for 3P’s
There are multiple benefits for the company that adopt the CSR polices, which includes improvement in brand image, increase in market share, positive recognition in the market and cost effectiveness. In the modern times, companies use the CSR policies to portray themselves as an ethical organisation aimed towards development of the society. As stated by Al-Bassam, Ntim, Opong and Downs (2018), companies are able to improve their brand image and position themselves as an ethical organisation in the minds of the public.
Due to such activities, many people come to know about the company and thus the products of the company can be marketed to such individuals indirectly. According to Potrashkova, Raiko, Tseitlin, Savchenko and Nagy (2019), this helps the companies in increasing their market share as customer prefer companies with ethical practices to those with unethical ones. It is the perception of the customer, that the companies involved in ethical practices offer better quality products, as they believe in contributing something towards the society.
This leads to an increase in revenue for the company. As noted by Potrashkova, Raiko, Tseitlin, Savchenko and Nagy (2019), lack of infrastructure or supportive measures require excess expenditure on the part of the company. However, it can be beneficial for the company, if the same becomes successful. For example, if the company does not have proper infrastructure for packing its products with plastics and such material. It can use paper packaging, which does not require much infrastructure. The move can be shown as a move to avoid plastics and contribute towards green environment. Therefore, the company can save the cost on infrastructure along with portraying itself as a green company. According to Al-Bassam, Ntim, Opong and Downs (2018), employees also like to associate themselves with organisations that are involved in ethical practices.
2.4 Theories related to Corporate Social Responsibility
2.4.1 Triple Bottom Line (TBL) Theory
The Triple Bottom Line Theory indicates the relationship between the companies implementing the CSR activities with their chances of sustainability. According to Tate and Bals (2018), a business does not become sustainable only by deriving economic profits. In order to be sustainable, the business must contribute something towards the society from which it takes the resources for operations. It is liable to be sustainable in social realms as well as in the environment. As noted by Tate and Bals (2018), economic profits, society and environment form the three aspects of the Triple Bottom Line of the success of a business entity. An organisation, which is socially responsible, is always aware of the Triple bottom line of its business. It needs to attain stability from all the three aspects of the business for ensuring success in the end or sustainable development.
2.4.2 Utilitarianism Theory
The Utilitarianism Theory aims to establish relationship between the corporate social responsibility of the company and the goal that benefits the maximum number of people. According to Heikkurinen (2018), Utilitarianism ensures maximising the happiness by the minimising the existing problems. Therefore, the same can be linked to the concept of CSR, the sole aim of which is to provide happiness to the people in the environment, without losing economic profits of the business. As stated by Heikkurinen (2018), stakeholders related to the company should be benefited, if the organisations aim to achieve economic profits through their activities. In this manner only, the company can do well to the maximum number of people across the globe. If all...