CSR Case Example

Essays on CSR Case Essay Corporate Social Responsibility Case about Nestle [Teacher 18th April When companies go global they face social risks associated with other markets. CSR strategy is a best tool to deal with social risks involved in operating in new markets. Corporate social responsibility is considered as the best strategy of all times. Through corporate social responsibility, companies can easily get some place in social and public circles. Nestle is already contributing to social, economic and sustainable development of countries it is working in. In the future, best corporate social responsibility strategy would be more paying especially in developing counties. In this case study about the corporate social responsibility (CSR) initiatives of Nestlà © and tries to address different dynamics of CSR contributions of Nestle. Nestle has been selected for writing a case because it is a global company that touches the lives of billions and it is an important contributor to CSR initiatives. Keywords: Nestle, CSR Table of Contents Abstract 2 Introduction 4 Analysis 4 Corporate Social Responsibility Initiatives 4 Motives for Corporate Social Responsibility Initiatives   6 Outcomes of the Corporate Social Responsibility Initiatives 6 Recommendations 7 Conclusion 7 References 9 Introduction Corporate social responsibility (CSR) is one of the most important concepts of strategic management. Today, CSR strategies are often used by large multinational companies (MNCs) to increase their goodwill and profitability. CSR endorses a vision of business accountability to shareholders, employees, environment, and society. MNCs use environment and other attributes of a particular place and it is the responsibility of the MNCs to contribute to sustainable development. This essay aims at highlighting the CSR initiatives of by Nestle and whether Nestle has sought to inflict any harm on one or more of its stakeholders for profit seeking. Nestle has been selected for writing a case because it is a global company that touches the lives of billions and it is an important contributor to CSR initiatives. In this essay we are going to talk about its CSR initiatives and we will also discuss the impacts of these initiatives on all stakeholders. Analysis Nestle is included in one of the world largest Fast Moving Consumer Goods companies. Products of Nestle are being used in 197 countries with the US and China major markets for sales. Nestle is spending hundreds of millions of dollars annually for the social and economic uplift of deprived communities around the world. In this part of the case study, we are going to discuss the different initiatives of Nestle in the world (Kramer, Pfitzer and Jestin, 2005). Corporate Social Responsibility Initiatives Agronomy Assistance: Nestle is supporting farmers and agriculture sectors of agriculture economies in the world. It is funding for the uplift of agriculture sector in many countries. Health and Nutrition: Nestle is also funding different NGOs to improve health and nutrition conditions in less developed and backward countries. Education and Manpower Development: Education and manpower development is among the top concern of the CSR strategist of Nestle. The main focus of these CSR strategies is on the youth of the poor and low income countries. Community Development: Nestle is also contributing towards the cause of community development. This CSR strategy also focuses on poor countries of Asia and Africa. Environment Protection and Preservation: Environment protection and preservation is among the top concerns of the rights groups and world leaders. Considering the gravity of the situation, Nestle also set aside a major portion of funds to contribute to the preservation and protection of environment. Solid Waste Management: Nestle is also actively participating in the infrastructure development for solid waste management. Rural Development: It is also funding different rural development and urban development programmers in Asia and Africa. Water Availability: Water shortage is a growing phenomenon in the world. Many countries in the world are suffering from severe shortage of drinking water and one billion people around the world do not have access to clean drinking water. Making water available for all is also on the list of top management of Nestle. Motives for Corporate Social Responsibility Initiatives   As per the Annual Report of Nestle S.A. for the year 2014, there are a lot of objectives behind devising a good CSR strategy. Following are some of the most important motives of behind devising the CSR strategy. Reputation and Brand Management Medium Access to capital and increased shareholder value Risk management Improved relationships with government Transparency Outcomes of the Corporate Social Responsibility Initiatives Criticism on CSR: The policies of CSR of Nestle are criticized in many countries due to the exploitation of environment and its own workers. People who criticize on the policies of Nestle claim that without provision of rights to workers, CSR strategies are worthless (The International Union of Food, 2008). Impacts on Company: There are many fold benefits of CSR strategy of Nestle. Among the most important benefits is the increased goodwill, profits and brand value of the company. Impacts on Shareholders: Shareholders also enjoy some benefits due to CSR strategy. Due to increase in profits, brand value, and goodwill of the company, the share price of the company also increases which is an important benefits for shareholders of Nestle. Impacts on Customers: Customers are tending to buy the products of the company with high goodwill and the company that shows care for people. Increasing numbers of customers are showing their interest in products of Nestle. Impacts on Employees: Some CSR initiatives also focus on the needs of the poor employees. But there is a long way to go for reducing the exploitation of poor workers. Recommendations After discussing different dynamics of CSR initiatives of Nestle, it is important to recommend some improvements for the CSR initiatives of Nestle. Nestle needs to introduce a more transparent ways to disburse the funds to needy people. Many people and rights group criticize Nestle for having dual standards. These people claim that Nestle is not investing in its own poor workers whereas; it spends millions of dollars to win the favors of local authorities and rights groups. So it is time that the higher management of Nestle understood that they need to introduce transparent method of funding for beneficiaries. They also need to address the concerns of their own worker. Conclusion At the end of this essay it is important to summarize important points of this essay. The main objective of this essay is to shed light on the important of CSR and CSR initiatives by Nestle. Nestle has been selected for writing this case study because it is a global company that touches the lives of billions in 197 countries and it is an important contributor to CSR initiatives. Impacts of these initiatives on all stakeholders have been discussed and some recommendations have been made at the end of this essay. Nestle is investing around the world in social causes heavily. Hundreds of thousands of people are benefiting from the CSR initiatives of Nestle. The impacts of CSR spending are great for the company and are increasing the brand value, profits, and goodwill of the company around the world. CSR contributions also increase the shareholders equity thereby increasing the value of the company. Nestle also needs to address the concerns of low paid poor workers. References Kramer, M., Pfitzer M., Jestin, K. (2005). The Nestlà © Concept of Corporate Social Responsibility as Implemented in Latin America. Retrieved from: http://www.fsg.org/tabid/191/ArticleId/205/Default.aspx?srpush=true. Accessed: 18th April 2015. Matibag, D. (2013). Corporate Social Responsibility (CSR) of Nestle. SlideShare.com. Retrieved from: http://www.slideshare.net/desireematibag/corporate-social-responsibility-csrof-nestle. Accessed: 18th April 2015. Nestle S.A. (2014). 2014 Annual Report of Nestle. Retrieved from: http://www.nestle.com/asset-library/documents/library/documents/annual_reports/2014-annual-report-en.pdf. Accessed: 18th April 2015. The International Union of Food. (2008) Nestlà ©Ã¢â‚¬â„¢s Corporate Social Responsibility (CSR). Retrieved from: http://www.iuf.org/nespressure/en/Nestle_CSI.pdf. Accessed: 18th April 2015.

Uncertainty and Volatility Free Essays

Uncertainty and volatility are common attributes of today’s national economies. While Small and Medium Enterprises (SMEs) represent major players in these economies, their stability and profitability are crucial issues that need further investigation. This statement is particularly significant in the Saudi Arabian context, because such enterprises have relatively recently begun to emerge and are beginning to play a dominant role in the country’s economy. We will write a custom essay sample on Uncertainty and Volatility or any similar topic only for you Order Now At the same time, the SME sector in Saudi Arabia is currently facing many barriers related to their relatively new economic situation (Kuada, 2006), as the atmosphere of the economic world is constantly changing and tends to be somewhat uncertain. As a result, companies, including SMEs, need to be more creative and flexible as they seek to get maximum profits in the minimum amount of time. Moreover, it has been noted that human resources play a vital role for every company to achieve its goals (Barney Wright, 1998), hence most companies seek to recruit high aptitude managers who can be a valuable addition to a workplace and can lead a company to achieve sustained success. In this respect, employee retention is considered one of the most serious challenges facing the stability of small organizations, since employee turnover can be harmful and expensive. When an employee intends to leave the company voluntarily, the issue is of such importance that numerous researchers have investigated the causes and effects of voluntary turnover (Al-A’Raj, 1989). Whilst the cost of losing skilled employees can be harmful for any organization (Ballinger, Craig, Cross, ; Gray, 2011), it is particularly so in SMEs as the effect is proportionally greater. According to O’Connell and Mei-Chuan (2007), the average cost of employee turnover is approximately $13,996 per employee. Further, Ballinger, Craig, Cross and Gray (2011) estimate that the direct cost of hiring and training a new employee can range from 25% to 500% of the employee’s annual salary, and, as such, Boushey and Glynn (2012) found that the replacement of highly educated executive employees averages 213% of the annual salary bill for a company. It has been noted that because this significant turnover is such a costly process (Al-A’Raj, 1989), it could lead to serious negative consequences for an organization. Indeed, in some situations, the consequences of significant turnover rates could expand beyond the organization to influence the labour market, the economic cycle and communities in general. Furthermore, Hyson (2016) and George (2015) argue that an organization can both conserve knowledge and manage resources more cost-effectively through being proactive in attempting to retain valuable employees. As a result of such deliberate actions to maintain staff, organizations are likely to increase their overall performance and develop long-term stability. In this respect, it has been suggested that manager behaviour plays a vital role in staff turnover. For example, Snyder and Lopez (2009) have specifically asserted that the encouragement of skilled employees by managers is vital in this regard. Of particular interest to the current study is that, in the SME sector, because enterprises are fiscally smaller their resources are generally scarcer. In the light of this scarcity, employee turnover is a more harmful occurrence than in large organizations which are able to absorb the consequential additional financial outlay described above. For this reason, the SME sector constitutes an important area for further research. Moreover, researchers analysing the behaviour of managers in SMEs report that the manager’s emotional intelligence is of great importance, as it significantly affects the management processes and outcomes within their enterprises. It is telling that the debate over topics related to EI and employee’s behaviour is ongoing in different cultures and parts of the world (Ang et al., 2007) , and it is asserted here that the role of EI in reducing turnover is one particular area that requires further investigation. Therefore, it is postulated that the analysis of the role of EI in the SME context should be carefully investigated in order to understand the way it affects employee’s retention outcomes in Saudi Arabia. It has also emerged that there is an extensive amount of controversy surrounding whether there are any differences in the levels and perceptions of EI in managers from different backgrounds and cultures, and, in addition, to what extent EI can be affected by these factors. limited research has been conducted on the relationship and/or link between EI and employee turnover in SMEs, specifically in the Middle Eastern context. Thus, this research aims to fill an important void in the literature. How to cite Uncertainty and Volatility, Papers

Electronic Commerce and Blue Martini free essay sample

JR Electronics is a mom-and-pop shop for the modern age. Joe and Rachelle Friedman started the business as audio equipment store in 1971.They funded the original business, a 500-square-foot storefront near New York’s City Hall, with the money the received for their wedding. Over 35 years, the Friedman expanded the business, adding records, equipment , cameras, computers, movies, and games. Today, JR Electronics encompasses a lucrative catalog business and 10 specialty electronics stores covering 300,000 square feet of retail space on that same city block in Manhattan. Among the stores are the famed J 8R Music World and JR Computer World. The JR empire sells nearly every type of electronic device imaginable. However, the Friedmans have resisted the advice of suppliers, such as record companies, who have told them the only way to survive and compete with big box stores was to become a chain. Rachelle Friedman explained that â€Å"by staying on the blockwe maintain control, which the chain stores lose. † How does JR continue to survive with only one location in an industry dominated by Wal-Marts, Best Buy, and Circuit City? Quite appropriately. The Friedmans have their son to thank for that. Jason Friedmans is the vice president of e-commerce for JR Electronics. In 1998, Jason, who started out as the company’s database manager, lobbied his parents to invest in the Web as an outlet for the company. JR went online using e-commerce software developed by InterWorld Corp.. a highly regarded product of the first dot-com boom. InterWorld’s Commerce Exchange served JR well enough to satisfy the notion that e-commerce would play a major role in the company’s future. In 20000, JR was ready to upgrade to a new version of the InterWorld software, which was touted as being much more robust than the previous version that JR had installed. Within a year, the upgrade process at JR was thrown off track as the dot-com bust brought about the demise of InterWorld. Jason Friedmans was forced to continue development of JR’s online presence without support from the software vendor. He and his staff managed to piece together a costommized e-commerce application that could handle the 400,000 products that J8R sold. However, the solution did not support some of the features that online retail competitors offered, such as the ability to collect and display customer reviews and provide information on inventory statistics, and shipping time. By that time, 30 percent of J8R’s $400 million in revenue being generated by JRcom. Friedmans was looking to inject new life into the Web site. With a staff of 50 IT workers backing him up. He explored ways to ensure that the JR.com would remain as popular a destination online as the bricks-and-mortar store was in the real world. For the new site, he chose an e-commerce platform from Blue Martini and a CRM package made by Loyalty Lab. In addition, Friedmans planned to bring JR.com in line with Web 2.0 concepts by populating the site with videos and introducing customer reviews. Those features were valuable tools that customers could use to educate themselves about products and comparison-shop before they committed to buying. In May 2006, JR unveiled an online loyalty program to encourage shoppers to visit JR.com directly rather than connect from a link on another site, such as a price comparison search engine. The strategy intends to raise the number of unique visitors to the site and, as Jason Friedman put it, relieve JR from â€Å"ï ¬ ghting over pennies with our competitors. For participating in the program, customers receive gift cards equaling 2 percent of their purchases. If successful, the loyalty program will keep past customers from giving their business to other stores, as well as entice new cust omers to join the JR community. Catalog shoppers are also eligible for loyalty rewards. Mark H. Goldstein, CEO of Loyalty Lab, noted that JR already had a loyal customer base as a result of its top-notch customer service and focus on building relationships. All that the company lacked was a program that recognized customer loyalty. Loyalty Lab’s CRM package helped ï ¬ ll that void by hosting the modules that enabled JR customers to register for accounts, manage their accounts, and redeem the incentives they have earned. J8R marketers can control the services from Loyalty Lab with simple graphical online tools using any standard Web browser. Goldstein point to additional benefits for JR from the program in form of saving what he call â€Å"the Google tax.† This is the 20 to 30 percent charge that J8R pays to search sites when visitors are directed to J8R from another site, a fee that J8R avoids when shoppers visit J R.com directly. JR selected Blue Martini as its new e-commerce platform because Blue Martini functions well with J8R’s ERP software fr om a technical perspective. The two systems are able to exchange data easily. Blue Martini provides a better opportunity to share the strengths of J 84Rs bricks-and-mortar channels online. By doing so, the company hopes to achieve a greater competitive advantage over its chain store rivals. Blue Martini has to showcase online the standout features of a visit to a JR Electronics store. Only then can customer throughout the country respond to the business with the same sense of loyalty as those who physically visit the stores in lower Manhattan. J8R has plenty of advantages, or differentiators, to showcase. Its prices are very competitive, yet it maintains a vast inventory that rarely leaves customers disappointed. JR also has a reputation for being at the leading edge of new technology. The company has a penchant for being the ï ¬ rst retailer to sell new products or the latest versions of already popular products. Furthermore, JR is known to have a good sense for technology trends, such as the transition from VHS to DVD and the rising popularity of Apple products. JR often caters to those trends before other stores are prepared to do so. Aside from good prices, perhaps the element of JR that appeals to customers most is its sales staff. Customers who enter J8R stores know that the workers they encounter will be well informed and adept at explaining the features and specifications of even the newest and most high-tech products. With Blue Martini, JR will try to emulate the expertise of its sales staff online. The platform provides a Guided Selling application, which collects input from the shopper and produces a narrowed-down view of the product catalog that is tailored for the requirements and preferences of a particular customer. Customers are able to view products by brand, price, popularity, size, and availability of special offers. By providing interactive recommendations, J8R can put more information about products in the hands of the customers, which makes them more comfortable in their purchases. Comprehensive product descriptions, product reviews from customers and other sources, and comparison grids will also make it easier for shoppers to understand and select products. Going a step further, Blue Martini enables JR to deepen its Web content with videos, including hundreds of clips that feature staff members giving tutorials on speciï ¬ c products. The videos bring a personalization to the online shopping experience that normally would be available only in a bricks-and-mortar store. J8R even ï ¬ lms the videos in its actual stores. The new e-commerce platform will also enhance the capabilities of software that JR hand to run its Endece Web site search software separately from the InterWorld site. The Endece software helps customers find, analyze, and determine relevancy in search results but these features could not be fully utilized in that environment. On the new site, JR can integrate Endeca with its PowerReviews customer reviews to help customers refine and sort products. Endeca also features merchandising functionality that JR will now be able to deploy for tracking the activities of customers across the JR.com site. The new JR.com launched in March 2007 with a host of new customer conveniences. If a customer selects a product that is out of stock, the site is prepared with a list of similar products. The site also has real-time integration with store inventory, so onsite purchases are reï ¬â€šected in the availability of products online. J8R has also made the checkout process more efï ¬ cient so shoppers arrive at ï ¬ nal price more quickly. The shipping section has been restructured to improve the accuracy of delivery dates and shipping fees. Jason Friedman recognizes that, despite the increased functionality provided by Blue Martini, his company is still limited by having physical stores located solely in New York City. He notes that where chain stores can offer customers the option of ordering merchandise online and picking it up that day in person at the nearest store, JR can only make that option available to customers in the New York City area. However, he feels that emphasizing e-commerce carries great potential for the business and represents the companys future. Maris Daugherty, a senior consultant with J.C. Williams Group, a global retail consultancy, believes that JR should not expect too much too soon. She says that there is space in the retail market for a niche entity like JR, but success will likely come from a long-term focus rather than a short-term revolution. Sources: â€Å"J8R Music Turns to Iby,†Adweek, August 19, 2.008, www.jr.corn, accessed August 28, 2008; Laton McCartney, Mid-Market Case: JQR Electronics Pumps Up the Volume, BaselineMagazine, March 13, 2007,- â€Å"J8R Electronics Taps Loyalty Lab’s On-Demand Suite for First Shopper Loyalty Program, Rtmilestonescom, accessed May 1, 2007; and JE?R Electronics Migrating to Blue Martini E-Commerce Platform, Internet-retailer com, November 8, 2006. CASE STUDY QUESTIONS 1. Analyze JR Electronics using the competitive forces and value chain models. What is its business model and business strategy? How does it provide value? 2. What is the role of the Internet in JR’s business strategy? Is it providing a solution to JR’s problems? Why or why not? 3. Can J8R keep up with the competition since it is more or less a local brand competing with nationwide chains? How would you measure its success in keeping up with the competition? 4. Visit JR’s online store at JR.com. What features described in this case are you able to find on the site? How effective is the implementation of these features? Do they seem to be achieving the goals that JR set for them? 5. Compare JR.com to the Web sites of Circuit City or Best Buy. Evaluate them in terms of product selection and availability, tool for providing product information and customer service, and ease of use. Which site would you use to purchase a computer or MP3 player? Why? 6. What do you think of the notion that JR’s new Web site and emphasis on e-commerce are not likely to result in a short-term windfall but should be part of a long-term growth stategy? How does this concept fit in with the company’s stategy?