Warren Bakery CSR environmental practices
Warren Bakery CSR environmental practices
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Table of Contents
TOC o “1-3” h z u HYPERLINK l “_Toc450825668″Executive summary PAGEREF _Toc450825668 h 2
HYPERLINK l “_Toc450825669″Warren Bakery Corporate Social Responsibility PAGEREF _Toc450825669 h 3
HYPERLINK l “_Toc450825670″Theoretical Review PAGEREF _Toc450825670 h 3
HYPERLINK l “_Toc450825671″Stakeholder Theory PAGEREF _Toc450825671 h 5
HYPERLINK l “_Toc450825672″Management of Stakeholders PAGEREF _Toc450825672 h 6
HYPERLINK l “_Toc450825673″Theoretical Framework PAGEREF _Toc450825673 h 6
HYPERLINK l “_Toc450825674″Economic Roles PAGEREF _Toc450825674 h 7
HYPERLINK l “_Toc450825675″Legal responsibilities PAGEREF _Toc450825675 h 7
HYPERLINK l “_Toc450825676″Ethical obligation PAGEREF _Toc450825676 h 7
HYPERLINK l “_Toc450825677″Philanthropic Obligation PAGEREF _Toc450825677 h 8
HYPERLINK l “_Toc450825678″Evaluation of organisations CSR environmental practices PAGEREF _Toc450825678 h 8
HYPERLINK l “_Toc450825679″The impact of CSR on Companys workers PAGEREF _Toc450825679 h 11
HYPERLINK l “_Toc450825680″Conclusion PAGEREF _Toc450825680 h 13
HYPERLINK l “_Toc450825681″Recommendations PAGEREF _Toc450825681 h 14
HYPERLINK l “_Toc450825682″References PAGEREF _Toc450825682 h 15
Executive summaryCorporate social responsibility is an idea that pays close attention to extended and responsive social influence of business to the community. The main objective of this paper is to examine the CSR environmental practices implemented by the Warren Bakery. The management of Warren Bakery pay close attention to CSR practices aiming to improve environmental protection. Reduction of environmental pollution is emphasized in terms of efficient use of energy and eco-friendly materials. The main aim of CSR is to ensure that companies can be held responsible for its actions to its stakeholders. According to stakeholder theory, managers must be accountable to the stakeholders including the society. Therefore, they need to develop strategies that protect the environment and mitigate the negative effects on people. CSR pyramid by Carroll is considered the best theoretical model. It includes four main social roles, which include philanthropic, ethical, legal and economic needs of society towards the firm. More importantly, Warren Bakery has an ethical role to protect the interests of all the stakeholders including protection of environment. CSR environmental standards enable the company pay close attention to the life cycle of the entire products. In conclusion, the firm must ensure that when initiating CSR policies and programs, employees are engaged in order to enhance corporate attractiveness.
Warren Bakery Corporate Social ResponsibilityWarren Bakery is one of the oldest producers of pasty in the United Kingdom. The firm is situated in Cornwall and it was founded in 1860 in St Just. At the initial years, the company was a family business but it is currently a limited company (Warren Bakery 2016). In addition, the firm has two sites of production and approximately fifty stores across Somerset, Devon and Cornwall. It produces a wide range of products including, biscuits, sweet treats, artisan breads, luxury scones and savouries. The firm mission is to produce quality products, and friendly services to its customers. More importantly, Warren Bakery pays close attention to Corporate Social Responsibility aiming to improve the environmental management. In this respect, the company emphasize the need for efficient use of energy and reduction of environmental pollution (Warrens Bakery 2016). The report will discuss the CSR in Warren Bakery in order to understand the environmental practices initiated in the business. The paper will utilize secondary data in the process of understanding the issues at hand.
Theoretical Review
The model of corporate social responsibility (CSR) deals with moral and ethical concepts, which affect behaviours and decision making in a firm. Corporate social responsibility is an idea that pays close attention to extended and responsive social influence of business to the community. In addition, globalization has supported the importance of corporate social responsibility in business functions (Lioui and Sharma 2012). In this regard, globalization has initiated new opportunities and challenges originating from rising connections between environmental, economic, political and social responsibility of businesses. Therefore, emerging risks confronts businesses in the international vibrant environment.
Consequently, business must be profitable and react positively to societal needs accordingly. The main aim of corporate social responsibility is to ensure that companies can be held responsible for its actions to its stakeholders. Companies focus on different stakeholders such as community, trade unions, employees, customers and shareholders (Sarkar, Datta, Mukherjee and Hannigan 2015). Because businesses lack adequate resources to deal with corporate social responsibility activities, it must incorporate, prioritise and identify stakeholders in the process of making decisions. Logically, business pursues to capitalize on making large profits and serve its interests (Wolf, Issa and Thiel 2014). Nonetheless, a company has social responsibilities as its tactical decisions normally influence a broad range of stakeholders. Corporate social responsibility practices play a critical role in the organization of business because they promote competitive advantage. In addition, CSR practices are very beneficial to a firm since they enhance sustainability in the long-term basis (Visser 2011).
According to Salcines, Babiak and Walters (2013), Corporate Social Responsibility Model is the core theoretical framework for scrutinizing companies practices in their activities. CSR theoretical model explains that four types of social responsibilities create complete Corporate Social Responsibilities. They include philanthropic, ethical, legal and economic entities. A wide range of decisions in businesses incorporates environmental and social concepts (Salcines, Babiak and Walters 2013). Major issues in business ethics focus on whether administrators must be concern mainly on stakeholders interest and whether they must pay attention to different interests of their stakeholders and balance them. The firms management primarily deals with protecting the interest of stakeholders (Nejati 2013). The role of activities of CSR to business is uncertain, as agency affirms that wealth of a stakeholder and benefits optimization in behalf of stakeholders in the main business concern.
Some economists such as Sarkar, Datta, Mukherjee and Hannigan (2015) argue that the CSR concept can be detrimental and contrary to business main objectives i.e. to make profits. In the contrast, arguments from other economists suggest that a company has certain responsibilities and duties towards the public. Therefore, the management must initiate measures aiming to improve welfare and benefit of the community. CSR reminds businesses that they have a role, which is beyond earning profits to society (Sarkar, Datta, Mukherjee and Hannigan 2015). Nevertheless, a company has social roles, and is ethical accountable for its business operations since its tactical decisions usually influence other stakeholders.
Wolf, Issa and Thiel (2014) noted that a company should be accountable to its stakeholders event it means reducing profits. In this regard, companies must pay close attention to these contradictory claims and interests in an ethical way by developing policies friendly to stakeholders. Corporate social responsibility is an assurance to enhance the well-being of a community via flexible business function and involvement of corporate resources (Wolf, Issa and Thiel 2014). Through CSR, a firm is able to safeguard its reputation. Moreover, CSR practices facilitate health-working association between the society and business, which play a role in improving the competitive advantage.
Stakeholder Theory
Stakeholder theory suggests there are many agents who have interests in decisions and actions of a firm. The theory emphasizes the need of managers to be accountable to the stakeholders. Stakeholders are people or group of persons who receive the benefits or harmful effects from the company (Sarkar, Datta, Mukherjee and Hannigan 2015). In addition, the firm may infringe the rights of its stakeholders or vice versa. A company has different stakeholders that offer competition to its resources. Therefore, a company need to develop strategies, which facilitate better management of stakeholders (Lioui and Sharma 2012).
Stakeholder theory also suggests that companies have stakeholders that affect their operations. Moreover, the cooperation between the stakeholders and organization produce specific effect that influences the daily business activities (Visser 2011). Furthermore, the perceptions and attitudes of primary stakeholders affect the sustainability of companies strategic choices. Therefore, companies should embrace appropriate strategies to work with major stakeholders appropriately (Visser 2011). More importantly, a firm should implement stakeholder management because in most cases, a firm fails to accomplish its roles to its stakeholders.
Management of Stakeholders
The responsibility to serve all the interest of the stakeholders is normally known as management of stakeholders. Because a company deal with many stakeholders, it rarely accomplishes its obligation towards every main stakeholder (Salcines, Babiak and Walters 2013). In this respect, it must find best approaches for efficient management of stakeholders because of high rate of competition that exist in sharing of organizations resources. Moreover, approaches of control of resources should incorporate the firms strategic objectives (Lioui and Sharma 2012). Stakeholder management enable respect of persons outside or within the organization in the process of allocation of resources. Consequently, management of stakeholder play an essential role in promotion of a win-win result (Anon 2015).
Theoretical Framework
Corporate Social responsibility (CSR) in Warren Bakery is beneficial to both the business and society because it enhance operating performance (Warrens Bakery 2016). More significantly, CSR in this firm helps to improve the reputation of the organization in the society. Corporate social responsibility model is applied as the major theoretical framework for assessing CSR practices of Warren Bakery business environment (Visser 2011). The model is embraced since it is inclusive and explains crucial concepts of the CSR objectives. Additionally, the model concentrates on major areas of corporate social responsibility and their comparative significance. CSR pyramid by Carroll is considered the best theoretical model. It includes four main social roles, which include philanthropic, ethical, legal and economic needs of society towards the firm (Wolf, Issa and Thiel 2014).
Economic Roles
Warren Bakery is an economic firm created to produce goods to the community. Earning profit is the main goal of this company. Additionally, the firms management act on behalf of the owners and are required to increase the wealth of the shareholders (Okpara and Idowu 2013). According to Carrolls CSR pyramid, economic factor give emphasis to the importance for a business firm to work in a way that increase gains per share. Similarly, Warren Bakery must be dedicated to remain lucrative as possible. Moreover, it should sustain a robust competitive advantage (Warrens Bakery 2016). However, it should avoid economic activities that lead to pollution of environment.
Legal responsibilities
Warren Bakery is required to operate within the legal framework in the process of business operations especially those for environmental protection (Warrens Bakery 2016). Legal role stand for basic requirement of fair business functions as stipulated by local, and state government. According to Carrolls legal factor, it is important for Warren Bakery to perform its business duties pursuant to legal and government expectations. In addition, it must abide to all law that govern corporate citizen (Sarkar, Datta, Mukherjee and Hannigan 2015). Similarly, goods produced from Warren Bakery should conform to minimal authorized requirement. The Warren Bakery management understand and strive to meet the legal its legal responsibilities. According to Nejati (2013), laws and regulations are important for the accomplishment of corporate social responsibility (Nejati 2013).
Ethical obligation
Ethical obligation in business involves practices and activities that are intolerable and tolerable by the community although not covered by the law (Visser 2011). Ethical obligations refer to tactical values of management about wrong and right conduct or behaviours in Warren Bakery business. Values or ethics are herald and dynamic the formation of law especially those for environmental protection. More significantly, Warren Bakery ethics obligation adopts community-developing norms and values, which is expected to be fulfilled. Warren Bakery Company requires norms and values aiming to maintain higher performance standards than that needed by the law (Lioui and Sharma 2012). According to Carrolls pyramid, ethical factor emphasise the importance for Warren Bakery Company to operate in a way that recognize ethical norms and public expectations. In addition, Warren Bakery Company respect and recognize emerging or changing moral and ethical norms embraced in the society (Warrens Bakery 2016). Furthermore, the company safeguard the ethical standards from being disrespected aiming to accomplish commercial goals.
Philanthropic Obligation
Philanthropy refers to commercial action, intended to enhance human goodwill and welfare. Warren Bakery Company is expected to maintain philanthropic roles based on the expectation of the society that require all firms to be good corporate citizens. Jeffrey (2015) argues that a company including contribution to community or education, good citizenship and public relations freely assumes philanthropic roles (Jeffrey 2015). The major difference between ethical and philanthropic obligation is that moral and ethical issues contrary to philanthropic factors influence ethical factors (Salcines, Babiak and Walters 2013). Warren Bakery company conducts philanthropic activities discretionary and freely in its business operations. For instance, the firm has introduced various charitable and philanthropic projects in the country aiming to improve quality of life of its customer. Moreover, Warren Bakery Company has adopted various policies in order to facilitate philanthropic activities in business (Warrens Bakery 2016).
Evaluation of organisations CSR environmental practicesWarren Bakery Company has initiated various strategic practices aiming to protect the environment and improve the competitive advantage of its brands. The firm has also taken the responsibility of reducing environmental damage. For instance, Warren Bakery Company introduced environmental-friendly paper bags in order to protect the environment (Warrens Bakery 2016). Additionally, the company adheres to set law and regulations on CSR environmental practices. Therefore, Warren Bakery minimizes the risk of effect for non-adherence to the legal provisions. Okpara and Idowu (2013) argue that a robust CSR and an efficient financial framework enable a business to thrive. In addition, they noted that if a company decide to disregard the CSR environmental practices, it is likely that its financial capacity will decrease (Okpara and Idowu 2013).
CSR environmental standards enable the company pay close attention to the life cycle of the entire products (Visser 2011). Therefore, it ensures that its products do not negatively affect the environment. Warren Company executes more sustainable production methods. Furthermore, it establishes ways of reducing their carbon footprint. In this regard, the company management has initiated measures that counter any destructive effect in the process of production (Nejati 2013).
More importantly, the firm integrate CSR in the process of production, distribution, selling and post-sale support services that ensure that Warren Bakery is accountable for its effects on the environment (Anon 2015). For instance, the firm has initiated various initiatives to reduce the level of carbon footprint in the local and international market. Greenhouse gases cause harmful environmental challenges such as global warming and ozone layer depletion (Sarkar, Datta, Mukherjee and Hannigan 2015). These gases include carbon dioxide, and sulphur dioxide. Global warming is associated with dangerous environmental challenges such as reduction of ice caps, more deserts and bigger storms. Consequently, it leads to rise in the level of the sea (Eweje and Alakavuklar 2014).
Warren Bakery has also introduced efficient use of energy especially with regard to use of fossil fuel. In this respect, fossil fuel produces carbon dioxide, which is a greenhouse gas that causes global, warming (Warrens Bakery 2016). Such industrial processes are harmful to populations that risk the lives of people. To solve this problem Warren Company has adopted new technology in the process of production aiming to minimize the amount of carbon released into the atmosphere. The new innovative technologies are environmentally comprehensive and help to minimize over-reliance on fossil fuel. Ultimately, the rate of ozone layer depletion will slow down (Okpara and Idowu 2013). Emission Trading Scheme has been implemented in the EU countries. Through this program, a firm is required to pay a fee depending on the amount of carbon released in the environment (Wolf, Issa and Thiel 2014). Warren Bakery Company optimizes product life via reuse, refurbishment and service. It also uses plastic bags that can be recycled after use.
Warren Bakery Company has also introduced regular monitoring on the environmental effect due to its products. Ultimately, its products are eco-friendly aiming to reduce harmful effects of its products on the environment. Furthermore, the firm participate in environment awareness programs among the contractors, suppliers, customer and employees as well as other stakeholders (Sarkar, Datta, Mukherjee and Hannigan 2015). Awareness creation among these stakeholders is important because it helps to change behaviours, which consequently lead to reduction in generation of waste.
Consumers are also guided to avoid paper waste particularly in the process of communication although telephone and online buying platforms, can be utilized when making requests. Similarly, it seeks to mitigate and control the effects on environment, which are caused by its industrial processes. The management of Warren Bakery also attempt to comply with the legal obligations and regulations related to the environment (Jeffrey 2015). The company also have set CSR environmental goals, which aims to minimize the carbon emissions from its industries. In this regard, it seeks to replace old engines and vehicles that generate more greenhouse gasses (Visser 2011).
Evaluation of the organisation
The impact of CSR on Companys workersCorporate Social Responsibility (CSR) plays a critical role in the behavior and attitude of employees, which can affect the ability of the firm to do daily business. Workers in Warren Bakery Company contribute to the performance of the firm as well as social exchange practices. Markets forces and qualities affect the distribution of Warren Bakery CSR practices (Warrens Bakery 2016). Isabel Ramos (2013) argues that a firm receive many benefits through the CSR since it improves the attractiveness to its current and expected workers (Isabel Ramos 2013).
In addition, a study on Corporate Social Responsibility noted that workers are one of the most useful stakeholders groups hence the management must enhance their social responsibility. Therefore, the study suggests that employees should be involved in establishment of CSR strategies because it determines the ability of workers to embrace a socially responsible behavior.
A research by Nejati (2013) indicated that CSR influence the commitment of employees towards the company. Furthermore, it suggested that Corporate Social Responsibility could determine the perception of company justice of employees (Nejati 2013). Similarly, it influences the Organizational Citizenship Behavior (OCB) (Visser 2011). Ultimately, CSR affect the behaviours and attitudes of workers towards the companys activities affecting the overall performance.
According to Social Identity theory, persons tend to support their self-esteem and boost their self-character by recognizing with organizations and groups identified for their social roles and participation. The theory supports the idea that behaviours and attitudes of employees affect the firms commercial performance (Anon 2015). Corporate social responsibility involves activities designed towards stakeholders that exceed the beyond the traditional actions of the firm encompassing, for instance, social groups, and environment (Wolf, Issa and Thiel 2014). More significantly, these activities change various aspects between a company and its workers. Ultimately, establish a need for workers to respond by initiating positive behavior towards the performance of the firm.
Idowu and Louche (2011) affirms this idea by indicating that personal recognition with a firm may be connected with certain types of social exchange. This means that a personal level of firms identification may affect the social exchange and industrial process due to Corporate Social Responsibility. In this respect, workers initiate a sense of engagement and responsibility in their actions and behaviours (Idowu and Louche 2011). Therefore, they may punish or reward the corporate social responsibility practices particularly those affecting their working conditions.
Employees are a crucial stakeholder in CSR hence; the corporate activities must cover the social welfare of the employees (Salcines, Babiak and Walters 2013). On the other hand, workers can affect the social change when they encourage the company to embrace socially responsible behavior. Furthermore, environmental program prove that workers support is required to maintain efficient CSR policies and programs. Workers also react, judge, evaluate and perceive Corporate social responsibility actions and programs just like other stakeholders (Sarkar, Datta, Mukherjee and Hannigan 2015). Researches indicated that employees group receive limited attention in the CSR actions because previous activities were designed to promote corporate and leadership social behaviours.
Warren Bakery Company should ensure that when initiating CSR policies and programs, employees are engaged in order to enhance corporate attractiveness (Warrens Bakery 2016). Coombs and Holladay (2012) noted that a company is able to attract best employees if it has best strategies to improve environmental and societal performance.
Other researches have argued that different programs can affect the selection of job especially among women in a certain group (Coombs and Holladay 2012). Therefore, Warren Bakery should formulate CSR policies towards its workers, which produce positive behaviours and commitment in their work. The firm will benefit from improved performance because of high rate of job satisfaction (Salcines, Babiak and Walters 2013). Additionally, Warren Bakery will reduce the effect of workers turnover because of improved motivation. Therefore, an integrative model between the Warren Bakery company and its employees will lead to better corporate performance (Leonard and Gonzalez-Perez 2013).
Conclusion
Warren Bakery Company has initiated CSR policies that emphasize the need for production of environmental friendly products and processes. Carroll Pyramid of CSR model explain the expectations of companies in the process of production. The model involves four types of social obligations in a comprehensive CSR (Eweje and Alakavuklar 2014). They include philanthropic, ethical, legal and economic factors. In this respect, a company is considered an entity. It is essential for companies such as Warren Bakery to initiate CSR practices that enhance ethical treatment of stakeholders (Wolf, Issa and Thiel 2014). A firm has different stakeholders whose interests must be protected via the management. In most cases, stakeholders are more concerned on ethical, legal and economic obligations as compared to philanthropic factors. An organization including Warren Bakery gain competitive advantage and improve its image through efficient management and understanding of stakeholders. The relevance for action is that firms require recognizing appropriate stakeholders and incorporating the interests of its major stakeholders into the planning (Okpara and Idowu 2013). The management is able to make sound decisions by identifying suitable stakeholders who move the company forward (Coombs and Holladay 2012). On the other hand, Warren Bakery CSR environmental practices are very essential because they help to reduce carbon emission. They also encourage companies to use energy efficient mechanism in order to reduce use of fossil fuels. The company also use eco-friendly paper bags to avoid environmental pollution. Greenhouse gases such as sulphur dioxides and carbon dioxide are harmful to the environment because they cause global warming and ozone layer depletion (Idowu and Louche 2011).
Recommendations
The management of Warren Bakery Company should enhance the CSR environmental practices in order to meet the demands of the market. For instance, the firm should implement policies that seek to reduce carbon footprint especially in its industrial processes. It should also set a timeframe of two years (e.g. upto 2018) to implement the CSR environmental practices. The firm requires resources such as human experts to provide technical advice and installations as well as capital resources to purchase required materials. The firm management should also encourage innovative measures of dealing with GHGs especially by utilizing modern technology. In this regard, the firm should digitize energy supervision technologies (Leonard and Gonzalez-Perez 2013). According to Leonard and Gonzalez-Perez (2013), a firm is able to save approximately 40 per cent of its current costs in industrial processes when it utilizes new technologies. Moreover, it is beneficial to use modern technology because it minimizes costs associated to recording of GHGs emission levels. Similarly, the firm should set high standards on greenhouse gases emissions. Furthermore, transparent recording and reporting must be in place to help the firm monitor and implement appropriate business strategies. Along the value chain, Warren Bakery management should use eco-friendly materials (Okpara and Idowu 2013). It should also reduce consumption of fossil fuels because they produce by-products that are harmful to the environment. It is also important to initiate collaboration between staff and management in order to enhance efficient use of energy (Leonard and Gonzalez-Perez 2013). On the other hand, the government should introduce motivation programs on companies that release low amount of GHGs. Nevertheless, many barriers limit implementation of these recommendations. In this regard, the cost of implementation of new technologies on the industrial processes is very high hence, the firm may require more time prior to its implementation (Okpara and Idowu 2013). Fortunately, Warren Bakery Management should implement a timeframe that provide the guidance on implementation of these recommendations.
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