Corporate Social Responsibility (CSR) is the means by which a company justifies their existence in order to gain success by showing an interest in taking care of the people and the communities that surround them. Corporate Social Responsibility has the purpose of giving to the society as a whole, an impact that is positive which ensures that it is sustainable for quite some time. The hospitality industry should tightly uphold Corporate Social Responsibility which is also referred to as social responsibility. Corporate Social Responsibility ensures that the society is up to date with events that take place in society. In this case, Coca Cola Company situated in Colombia has adapted this strategy so as to ensure the company runs smoothly.
Corporate Social Responsibility in the Companies
The society consists of the shareholders to the companies and hence if the society benefits they benefit too. Corporate Social Responsibility helps companies to create a compelling image to the public and hence market themselves. This industry has many business people running different firms in it. Majority of the people who are in this firms do not look at the industry as being sustainable, and hence they make their short term profits and leave the damage to the society, this has profoundly spoilt the image of the industry to the society. These firms should be responsible about the environment if they want coca cola industry to sustain itself through conservation of resources. This way they should be in a position to take care of the pollution that they cause and the waste released to the environment that is toxic (Bobby, 2007).
Companies that have upheld corporate social responsibility are doing very well in the market because the society wants to support the companies so that they can continue to do good for society. Corporate Social Responsibility is about conducting business according to the code of ethics that are laid down for the industry. However, the laws and policies set by the government need to be good to affect Corporate Social Responsibility. So many brands are widely known because of the place where they are produced, which can be in another country or continent for example, people believe that items manufactured in America are of better quality than those produced in African countries. The sales strategy that some companies use to advertise their products has enabled them to be known in the whole globe. Thus, Corporate Social Responsibility is the way to recognition for many companies if they want to be known globally.
The employees in this industry need to be well trained to ensure that they are in a position to serve clients well. Corporate Social Responsibility helps to take care of some employees who are often vulnerable to discrimination such as the immigrants and people who are physically incapacitated. The hospitality industry needs people who love to work in the industry. This is because it helps them in their hiring of employees for the reason that as much as the salary is good employees want to work for companies that have interests in improving society by decreasing the level of poverty (Anderson, 2000).
They have helped to shape the society regarding ethics that people should uphold. They have taught the society that offering help at the right time is important and one should help where he or she can. There are some industries that offer help when it is too late and this makes development very expensive. The stakeholder has helped to reduce the rates of pollution on the environment. They have also helped in providing solutions to the problems that were facing the environment. They have helped the companies to translate the theories which are related to corporate social responsibility to practice. They have helped in the application of good leadership in the company. The stakeholders have also helped the industry to use innovation which in order to keep with the changing times as the technology continues to advance.
The Stakeholder Theory which Supports Corporate Social Responsibility
The stakeholders are very concerned about the working conditions that the workers work in and also about the level of dedication that the workers have towards their work. The stakeholders are also concerned about the kind of equipments that the workers use in order to deliver quality services. The stakeholders help in reaching at a decision that is suitable for the industry or about giving suggestion that would help in providing quality services. All this is aimed at improving the corporate social responsibility towards the employees in the industry. There are theories that support Corporate Social Responsibility. These theories help in guiding companies about the responsibilities that they should have. Mostly the theories have an impact on the society, the economy of a country and last but not least the environment in which we live in. The theories that influence corporate social responsibility are Clarkson theory, stakeholder theory and the shareholder theory (Crowther, 2004).
The stakeholder theory helps the company and industry managers to be able in to enter into the business environment that is bigger. It also teaches them to know the various ways of taking care of business and effect procedures that are important to the stakeholders. It also helps the managers to make major decisions about the company and think through about the impact that such decisions will have on the people in the society or all the stakeholders. This theory is dynamic because it gives room for changes in companies and the companies will also need to adapt to these changes. However, when the company makes it a priority to increase the wealth of the stockholders, the stakeholders to the company can become sidelined and this not good for business. The stakeholder theory says that it is not ethical to fail putting into consideration the stakeholder's interests. Companies who overlook the stakeholders look at the benefits of the company in a short term manner compared to the companies who look at making or getting benefits that are long term for sustainability.
Stakeholder theory helps corporations to define their reasons for existence and what they really are. It helps to analyze that, the companies exist because of the shareholders that they have. It says that with this aim the company surely prospers. Companies and industries are viewed as large organization even if they are not big enough because of the social integration that they have with the society. According to Crowther (2004), the shareholder theory is about the people who have capital in the business. It says that the stockholders need to see that the profits generated by the company go to a good course such as charitable activities. These theories have supported the corporate social responsibility in many companies whether is it done in a formal way or not. These theories have acted as a key and eye opener to many companies because they have helped them understand the concept of giving back to the society as they seek to expand.
Corporate Social Responsibility will one day become compulsory for all the companies because the society is the backbone of the companies. The market forces continue to be stronger and thus making sure that every company is up to date with the current happenings in the world.