Corporate Social Responsibility

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In the middle of this pandemic, companies have sought out ways to continue their

Corporate Social Responsibility (CSR). This global crisis has changed how businesses
implement their Corporate Social Responsibility in the new normal. Countries all around the
globe have imposed lockdown procedures to contain the virus, which has caused changes in the
world economy. With the full effects of the COVID-19 outbreak, businesses have been greatly
affected. Since working from home has been implemented by every company around the world
due to lockdown, the job of corporate social responsibility is currently more significant than any
other time in the recent years. The COVID-19 pandemic impacted the environment and has
altered the modern markets, which has required companies to show their obligation to the
society. This pandemic serves as a wake-up call for companies to reconsider their role in the
society. In this study, it will discuss the means and progression of CSR throughout the years.
This essay will also talk on the roles and changes of Corporate Social Responsibility brought by
the world-wide pandemic as international business employs local staff to work from home and
the positive effects. As the utilization of corporate social responsibility develops, having a
socially conscious image becomes more crucial for businesses. This paper contains a
comprehensive review and interpretation of the literature. Furthermore, this essay will be
beneficial to international business as it seeks to provide Corporate Social Responsibility
strategies in the face of pandemic. The main concepts are Corporate Social Responsibility,
effects of the pandemic in businesses, and change of CSR in the middle of pandemic will also be
beneficial to international business as a self-analysis tool to evaluate their values and
commitment to their employees, stakeholders, and the society.

CSR is a management concept in which businesses incorporate social and environmental


issues into their operations and interactions with stakeholders. An organization carrying out CSR
can be beneficial since it can assist them with getting the help from financial backers, partners,
and hence get great inner and outer conditions for their manageable turn of events. The CSR is
the organization's initiative and awareness of certain expectations towards the local area and
encompassing in which it works. In 1953, Corporate Social Responsibility was coined by
Howard Bowen in his published work, Social Responsibilities of the Businessman. CSR, on the
other hand, did not really take off in the United States until the 1970s. The Committee for
Economic Development (1971) first proposed the concept of a "social contract" between
corporations and society. This contract advocated the idea that businesses function and exist as a
result of public consent, and that businesses have a responsibility to contribute to society's needs.
By the 1980s, early CSR had progressed as more businesses began to incorporate social concerns
into their operations while being more responsive to stakeholders. CSR is considered as the
process through which a business achieves a balance of economic, environmental, and social
imperatives while also meeting the expectations of its shareholders and stakeholders. (United
Nations Industrial Development Organization, n.d.). The start of inescapable endorsement of
CSR was marked in the late 1990s. A framework for business and society in Corporate Social
Performance Revisited, published by Donna J. Wood in 1991 , which extended and enhanced
early CSR models by giving a system to evaluating the effects and results of CSR programs.
CSR had become a fundamental system for some associations in the mid 2000s, with multi-
million dollar organizations like Coca-Cola, Walt Disney, and Pfizer joining this idea into their
organizations measures.

As the years progressed, the role of CSR by many companies has been challenged by the
pandemic causing disruption to the market and society. It has been difficult for some companies
and businesses to be able to adapt their role of CSR in the modern day. Businesses and
organizations face hurdles when it comes to CSR during this time. According to reports, several
businesses/retailers have pursued to profit from this pandemic. It has been reported that in 2020,
an online salesman who was arrested in Manila City for overpricing was found with an estimated
P1.6 million worth of face masks. The Criminal Investigation and Detection Group (CIDG) was
prompted to execute the operation after receiving information and complaints about alleged mask
hoarding and overpriced sales. They were able to confirm that the suspect was selling a box of 50
face masks for P1,600 after conducting validation (INQUIRER, 2020). In other news, the US
Food and Drug Administration is sending enforcement actions to companies that are selling fake
coronavirus disease prevention, treatment, mitigation, diagnosis, or cure items for COVID-19.
Unsurprisingly, the pandemic has put businesses' commitment to ethical business practices and
CSR to the test. Some may assume that the outbreak's financial constraints, both short-and long-
term, pushed businesses to prioritize short-term advantages, sometimes even through fraud and
wrongdoing, while reducing long-term CSR investment, owing to a shortage of resources and
rising pressure to survive (He & Harris, 2020). Businesses must have an entrepreneurial attitude
and commit to change that involves innovation in order to survive in the short term. In order to
thrive in the new market conditions, businesses must be adaptable. (Anggadita, Ramadani,
Luturlean, & Ratten, 2016).

Nevertheless, it has been observed that many organizations have not only avoided
unethical business practices during this crisis, but have also proactively engaged in numerous
CSR activities, specifically those that can provide immediate relief and assistance in the battle
against this pandemic (He & Harris, 2020). Globe has donated over 255 million pesos in
donations, employee assistance, connection needs, and promotions as of April 2020. The Globe
Rewards donation drive raised more than 35 million pesos for 11 hospitals around the
Philippines. In addition, the company installed free GoWIFI services in 68 hospitals around the
country (Rappler, 2020). In 2020, Jollibee Food Corporation, the company's social responsibility
arm, gave 220 million pesos worth of food to frontline workers and families in need in the
Philippines, delivering meals to 1.3 million frontline workers and 2.5 million food packs to over
500,000 underprivileged households. JFC also set aside a 1 billion peso emergency budget to pay
all of its work teams, including senior citizens and persons with disabilities (PWDs) assigned to
the jobs program in collaboration with local government units, a full month's salary during
enhanced community quarantine (ECQ) and an advanced payout of 13th month pay. Across its
portfolio of brands, JFC is witnessing promising signs of recovery and improvement. In the
United States, China, Vietnam, Singapore, Hong Kong, and Brunei, sales have already begun to
recover. It is also seeing considerable sales growth in the Philippines, particularly now that 50 to
75 percent dine-in capacity is permitted (Philippine News Agency, 2020). Customers and the
general public will value a company's genuine and authentic CSR since they have high
expectations from leading brands, particularly their favorable brands, in terms of their efforts to
combat the virus amid the current crisis. Consumers would be proud of their brands for assisting
their employees throughout the crisis by donating money and equipment. During this period of
crisis, the bond developed between the brand and the consumer might be more important and
lasting than during "peaceful" times (He & Harris, 2020). Willis Towers (2020) conducted a
survey in the implemented policies to ensure employee welfare and business continuity to
minimize impact during the Enhanced Community Quarantine period. These included work-
from-home arrangements for corporate office-based personnel across industries, as well as a
skeletal workforce or split operations arrangement for personnel in operations. Thirty-five
percent (35%) of these companies are largely from the Shared Services Outsourcing and
Financial Services industries. The pandemic has caused a strain in the way businesses operate.
However, a majority of the participating organizations are gradually giving more perks and
support to employees in order to reduce the impact of the pandemic on their business and
workforce in the Philippines, according to the collected responses. Companies are improving
their CSR as their stakeholders are what keeps a business going. As claimed by Gartenstein
(2021) working together toward common goals is the foundation of a successful relationship
between a company and its stakeholders. Employees' livelihoods are dependent on the company.
And if they are treated properly, they'll be motivated to work as a team and as a family to go
above and beyond their job responsibilities to help the company succeed. If the company offers a
product or service that actually enhances the consumers' lives, they'll likely go to battle for the
business, spreading the word about what you have to offer because they honestly want your
company to succeed.

The COVID-19 pandemic has taken a toll on the business world. Companies are seeing
their stakeholder ties shift dramatically and unexpectedly. Perhaps their priorities, too.
According to Robichaud (2020) there is a lot of potential for long-term sustainability to emerge
from this temporary crisis if businesses are prepared to embrace change for the greater welfare of
all, or at least the majority of people. Organizations can: use the new normal (work-from-home)
practices to attract a more diverse workforce, particularly among persons with disabilities who
can get the same amount of work done, being early and productive as the others do without the
need of getting out of their home. Additionally, employees are lowering their carbon footprint by
working from home because there are fewer cars on the road and hence fewer CO2 emissions.
Turn telecommuting into a long-term cost-cutting strategy to help reduce CO2 emissions,
workers may schedule a video conference instead of traveling to see a stakeholder, saving them
time and money. Employees can easily manage their time prepping food and materials for work,
since they are home based, getting the right amount of work and rest is a trouble-free problem.
Though there are some who see this as a big challenge, this can be overcome with proper
consultation from colleagues overtime. Invest more in your community, by encouraging
stakeholders to engage in a microgrid project, a utility company can minimize the impact of
fossil energy and lessen the impact of fossil energy. Distributed energy resources are the future
for electricity (rooftop solar photovoltaic, wind generator, battery storage, solar farms).
Traditionally, corporations were primarily concerned with keeping their stockholders
pleased. However, they are now likely to be held accountable to a broader range of stakeholders,
including employees, consumers, government regulators, and so on. The development of
corporate social responsibility is due to the shift, which proposes that business decisions should
include the interests of all stakeholders, not just stockholders (Robichaud, 2020). In these
difficult times, sustainable businesses are looking at how they may best contribute to society
rather than just making a profit. In the best interests of their communities, some companies that
are not on the list of essential public services have made the strategic decision to remain open for
business. For example, hotels are becoming quarantine centers, distilleries are producing hand
sanitizers, and automobile manufacturers are looking into producing medical products such as
ventilators, which are in high demand. Especially in these difficult times, businesses are
embracing corporate social innovation (Robichaud, 2020). According to Gafni (2020), during the
COVID-19 crisis, business leaders are helping society in three ways:

1. Encouraging mental health

Many businesses, as well as state and local governments, encourage employees to work
from home. As a result, many corporations are promoting both mental and physical
wellness. Starbucks has officially announced that all employees would be eligible for up
to 20 therapy sessions as part of their mental health coverage.

2. Providing financial security

Corporations are promising to financially help hourly employees when businesses close
and factories reduce hours in reaction to the pandemic. Even as demand for Microsoft's
services declines, the company has pledged to pay hourly workers their usual salary,
while Walmart, Apple, and the Olive Garden have updated their sick-leave policies to
provide more coverage and support for their most vulnerable employees.

3. Promoting small enterprises.

According to the Wall Street Journal, small businesses' financial security has dropped as
a result of COVID-19. Big companies are stepping in to help small businesses during this
difficult time: Amazon has announced a $5 million relief fund for small businesses near
its headquarters, and Google has pledged $1 million to pandemic-affected groups in
Mountain View, California.

In conclusion, Corporate Social Responsibility has evolved into something more


meaningful, despite the crisis the world is facing right now. A significant effect on the economic,
social, political, and cultural landscape took shape in-order to prevent the further wide-spread of
the virus. Thanks to the companies that had already adapted from the crisis and have continued
serving their new way of CSR role in maintaining the pandemic for further spreading while
keeping the economy stable. Furthermore, creating meaningful relationships with stakeholders is
vital to the business’ success. Building good alliances, on the other hand, involves hard work
and vision. Work to match your company's interests with those of your stakeholders wherever
possible. Treat your employees well and appropriately compensate them so that they will
contribute to your mutual success. Create the highest-quality items possible so that your
customers would go above and above to assist you in continuing to provide them. Without a
doubt, those who take a more meaningful and strategic approach to CSR will benefit much from
the current pandemic.

Based on the literature view on will Corporate Social Responsibility change when
international business employs local staff to work from home. There will be a few
recommendations addressed. The COVID-19 pandemic has changed how businesses implement
their CSR. In the case of the new normal companies employing workers to work from home can
still perform CSR with a little set back in this new set-up. Some companies have easily adapted
from the crisis and have maintained the working safety of their employees by staying and
working at home. Working from home can be a win-win between the employee and the
corporation. CSR has been more prominent now than in recent years. In order to promote good
CSR, the business must have a vision, committed to their values and is willing to give back to the
society. A business’ success will depend on the employees. Promoting good CSR will also make
employees feel safe away from the virus. Companies who value their employees’ welfare can
further increase the company’s reputation and their employees’ morale. Making sure that their
employees' health is at the highest point of plan and can help the business by spurring staff to
accomplish their best work and to draw in their best ability to encourage them to engage in CSR.
Therefore, adhere to a workplace health and safety plan. An organization that shows CSR are
acquiring openness and applaud for their contributions and thus improvement to the public
image. Hence, use marketing methods that are fair and honest, and that reflect the integrity of
your business. Any advertising or communication that could be perceived as manipulative or
damaging to the general public should be avoided. Implanting trust in potential clients perhaps
be the greatest advantage of CSR.

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