Impact of Corporate Social Responsibility Initiative

Question: Discuss about the Impact of Corporate for Social Responsibility Initiative. Answer: Introduction There is increased emphasis on social and environmental reporting in Australia; there is still a perception among shareholders that companies in Australia are performing poorly. Corporate social and reporting is the procedure of relaying the social and environmental challenges of organizationsà ¢Ã¢â€š ¬Ã… ¸ financial action to specific interest groups among people and the public (Deegan, 2012). There has been a shift of what people expect. What people expect is becoming more complicated as a result of enhanced societal conditions and increasing the standards of living while companies are being advised to be accountable to broader audiences apart from shareholders only. Social reporting requires changes of straight financial reporting as the role of stakeholders has become less significant compared to stakeholders. Withstanding all financial obligations proposed by theorems of economic is hard. These changes have made people put pressure on companies to show accountability (Deegan, 2012). Motivations for social and environmental reporting Economic Concerns Research indicates that the behaviors of businesses are driven by the self-interest of organizations (Rover, 2015), and it would profit organizations economically by voluntarily reporting themselves. The power of the stakeholders supports the arguments that social and environmental reporting satisfies company interest. It is now significant that stakeholders influence often affects companys activities directly through factors such as relations with investors, pressure from the media, regarding how organizations are rated (Rover, 2015). Brand management and reputation The reputation of companies and how they manage their brand is considered the direct link to making profits. This is evident in the businesses that have clients in the food sector. How customers consume or buy is attributed to better social and environmental reporting (Kilik, 2014). Better access to capital and value of Stakeholders A way which corporations contemplate social responsibility reporting is by extending access to capital and what the shareholder are worth by fulfilling expectations of the stakeholders. The companies that have main stakeholders that are keen and so worried about how the company is performing, more so the shareholders. It is important to select what will be included and excluded in the final report (Ravi, 2010). Management of Risk Social risks have increased in the present business setting among other types of risks e.g. Technical, political and financial threats (Kytle, Hamilton, Ruggie, 2005). Risks tend to affect the cost of products, market, public observations, operations, and supply. Companies reporting is now a tool for managing risk because of the rising difficulty of international business management (Kytle, 2005). It also helps to mix reporting activities in a companys strategy to minimize risk and to maximize the impact of social and environmental reporting (Kytle et al., 2005). Improved government relationships Companies sometimes often engage in social and environmental reporting so as to prevent possible hindrances like government intrusions with their activities for failure to report. The influence of the government to companies is always considered as a high level of stakeholders (Nolan, 2007). Obtain the 2013 sustainability report for Toyota Motor Corporation. Prepare a report that addresses the following issues: Toyotas vision and mission statement, and how these might relate to sustainability Toyota Motor Vision aim is to attain long-term, steady progress by the environment, the worldwide economy, the local people in which it works, and the stakeholders. While Toyotas Mission pursues to build a society that is prosperous by the manufacture of automotive. Toyotas stakeholders and how the company has engaged with each of stakeholder group In the Toyotas social and environmental reporting policy states that they will participate in the management of stakeholders and contribute to the ecological development and strive to uphold and develop well-working relationships through sound and just communications. Dialogue with the stakeholders normally happens throughout all the divisions and offices of Toyota, where its philosophy is communicated and helps develop a mutual understanding. Engaging with each stakeholder groups Customers Its philosophy is known as customer first takes measures of incorporating customers opinions so as to improve the products and services. It engages with the customers through their website, dissemination of information by use of social media, and responding to the opinions of customers through email and phone. Employees Bilateral communication to build teamwork and nurture a sense of unity based on a labor-management relationship established on shared trust and responsivity. They conduct surveys for employee satisfaction, negotiate opinion exchanges and mutual understanding in regarding major labour-management matters. Business partnerships Clear communication to attain an equally beneficial relationship founded on a mutual trust. Conferences and meetings with the dealers are conducted. Corporate and purchasing policies are shared in the meetings. Shareholders Results are disclosed on a timely manner to the shareholders and dialogue towards sustained growth and enhancing the corporate value. The president conducts presentations, question and answer sessions, exhibitions that will encourage other investors to have an interest at the company. Local communities Discussion with the stakeholders to form good relationships with the local community and to resolve social and environmental concerns. The activities of the company are introduced to the local community and ideas are exchanged. Toyota also participates jointly with other private and public sectors. Governance mechanisms in place on the board of directors to address sustainability The growth of the Corporate is a priority for Toyota. By carrying this, the company will achieve long- term growth and stability because of building healthy relationships with the stakeholders and customers and delivering of satisfying products. The company also has a corporate culture that emphasizes on solving problems and taking preventive measures and tactic for producing quality products in its manufacturing process. Quality is enhanced in all operations, and sustainability is achieved. Any guidance Toyota used in implementing environmental and social performance and reporting systems. The guiding principle established in 1992 and the environmental policies are based on the principle. Its Vision stresses the importance of respect for the planet. This guiding principle will make Toyota realize an improvement in efficiency of fuel globally. They are also aimed at developing a broad range of models that are eco-friendly. References Deegan, C, 2012, Australian Financial Accounting, 6th edition, McGraw Hill Australia. Gray, R 2006, Social, environmental sustainability reporting organizational value creation? Whose value? Whos Creation? Accounting, Auditing Accountability Journal, vol. 19, no 6, pp. 793-819. Keinert, C. 2008, Corporate social responsibility as an international strategy. Heidelberg, Physica-Verlag. KilicÃÅ' §, M., Uyar, A. 2014, The Impact of Corporate Characteristics on Social Responsibility and Environmental Disclosures in Turkish Listed Companies. Kytle, B., Hamilton, B.A., and Ruggie, J.G., 2005. Corporate social responsibility as risk management: A model for multinationals. Social Responsibility Initiative Working Paper. Cambridge, MA. Nolan, P. 2007, Capitalism and freedom: the contradictory character of globalization. London, Anthem Press. Ravi Raman, K., Lipschutz, R. D. 2010, Corporate social responsibility: comparative critiques. Basingstoke [England], Palgrave Macmillan. Rover, S., Murcia, F. D.-R., De Souza Murcia, F. C. 2015, The Determinants of Social and Environmental Disclosure Practices: The Brazilian Case. Environmental Quality Management. 25, 5-24. Ven van de, B. and Graafland, J.J. 2006, Strategic and moral motivation for corporate social responsibility, Journal of Corporate Citizenship, No. 22, pp. 111-123.