Corporate social responsibility as tool for risk management Dissertation

Corporate social responsibility as tool for risk management - Dissertation Example 3. How does the level of corporate social responsibility practices taken in the company happen to impact the profitability position of the company? 4. What are the best possible practices in terms of corporate social responsibility dimension which are practiced in J Sainsbury Plc? Findings and Analysis The findings and analysis portion would first endeavor to identify potential relationships between the parameters of corporate social responsibility and the activities to mitigate the level of business risks. Through the findings the potential of corporate social responsibility parameter would be analyzed in regards to the appropriation of business profits to help create and sustain effective relationship with the external and internal stakeholders of the company. The use of corporate social responsibility models can be used by the company in countering the level of social risks involved through the gaining of valuable information from the stakeholder’s end (Kytle & Ruggie, 2005 ,p.5-8). Further findings show that though the act of rendering social responsibility tends to reflect that profits of the company are generally used for rendering social activities. However it is observed that in the long run such social responsibility activities of the company happens to enhance the goodwill of the concern and hence also augments its social value (Parkinson, 1995, p.261). In this respect the case of J Sainsbury Plc also shows that increased commitment rendered in sustaining both the natural environment and in establishing enhanced relationships with the community at large has helped the company to gain wider market coverage. Again the level of social responsibility practices also helps the company in enhancing the recruitment possibilities in the company through the opening up of more number of retail outlets in the region (J Sainsbury Plc, 2011, p.64-65). The senior management has realized the importance of CSR guidelines as a tool for the company to position its elf in the competitive climate. Proper CSR guidelines not only reflect the expectations of the stakeholders from the company but also monitor the behavior of the company in whichever place it operates. Although these guidelines are not legally binding, yet they reflect the government’s expectations of the company on corporate social responsibility (UNICE, 2001, p.3). The most challenging part of the corporate social responsibility is that they act as benchmark against which they are evaluated by governments and stakeholders. They do not replace the sectoral code of conduct or the individual companies (Mullerat, 2010, p.39). A response of the senior management also throws light on the fact that CSR is viewed as an important management tool in the organization. Corporate social responsibility has both an internal and an external dimension. Human resource management, health and safety factors associated with the occupation, business restructuring, management of natural resources and the environmental impacts are some of the internal dimensions of CSR.