Corporate social responsibility entails a range of activities in which companies and businesses seek to improve the social environment local community’s economy, facilitation of human rights and ensure the fair trade. Therefore, corporate social responsibility enhances the development of the community where companies are operating. The issue of corporate social responsibility can be approached using different ways. The most commonly understood aspect of corporate social responsibility is philanthropist approach, where an organization gives aid in the form of donations and building of infrastructure that is beneficial to the community. The other aspect is the incorporation of social responsibility in policies and strategies of the business. It is referred to as ensuring fair trade in operations of the company’s business. Another approach used by companies is that of ensuring the efficiency of internal operations of the company. This approach aims at providing an efficient framework of internal operations of the company. The other approach is that of ensuring conservation of the environment by organizations. Therefore, the issue of corporate is wide (Ronnegard, 2010).
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Corporate Social Responsibility in the Internal Environment
This paper will focus on internal operations of the company. Employees of the company primarily dominate the corporate internal environment. Therefore, the company is responsible for ensuring proper working conditions of employees. The company should endeavor to improve the quality of life of its employees, their families and the community, in general. The main objective of the business is to increase its profit margins. This objective cannot be achieved, if the workforce engaged is dissatisfied with mistreatment by the company or poor working conditions. Profit margins increase if the company ensures customers’ satisfaction through a supply of quality goods and services. Employees are engaged in production and supply of these goods to their customers. Hence, the company should address issues relating to employees to guarantee its competitiveness in the market (Kotler & Lee, 2005).
The firm has to ensure the economic growth of employees. There are direct and indirect aspects of the company impact on employees. The direct impact includes ensuring the sufficiency and timely payment of employees’ salaries; it can also include the offering of loans to employees at a subsidized rate. The indirect impact should not be overlooked either. The continued economic growth of the company enables the company to invest in more long-term projects, which improve the stability of the company. Employees are able to get decent salaries from which they can improve their standard of living and economic status. Increased satisfaction of employees will improve the employees’ attitude and morale in the working environment. This will ultimately translate to improved performance of the business and achievement of objectives.(Ibp Usa, USA International Business Publications, 2007)
The company should also work towards ensuring the proper maintenance of safety and health standards in the working environment. Improper working conditions increase employees’ dissatisfaction in the working environment. This will translate to the reduced productivity of employees and poor performance of the organization, in general. Increased safety issues in the working environment increase cost of operations for the business. Therefore, implications of poor health and safety measures in working are detrimental to the performance of the organization. The organization should also ensure equal opportunities to employees without discrimination with respect to gender, race, religion or age. The organization should generally create quality and conductive environment to all employees in their working life.
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The organization should also ensure the development of employees’ education and skills. The organization can achieve this objective through the job training and motivational seminars held specifically to address the issue of employees’ morale and personal development. This indicates that the organization is solely responsible for the performance of employees in the working environment.(Daft & Lane, 2009)
Research has shown that internal environment social corporate responsibility has the direct impact on organization effectiveness. The organization has to ensure satisfaction of employees through improving working conditions. The effectiveness of internal operations is essential for the achievement of companies’ objectives. Satisfaction of employees improves the public image of the organization, hence, a decent reputation in the market, which is essential for acceptability of the company’s products. The company should offer disability and death benefit to employees will facilitate maintenance of the employee dependents (Ibp Usa, USA International Business Publications, 2007).
Relevance of Internal Environment Corporate Social Responsibility in UAE
There is an increased awareness on corporate social responsibility in the United Arab Emirates in the recent history. This has been due to the presence of multinational corporations, which practice corporate social responsibility. However, the awareness varies from one emirate to the other. The recent trend reflects that corporate social responsibility has become a concern to most organizations. However, few firms practice corporate social responsibility. This indicates a wide gap that exists between the increased awareness and practice of CSR practices. Most organizations lack expertise and competence to put the CSR practices into action.
The internal environment approach of corporate social responsibility in UAE has, however, been overwhelmingly supported. Most organizations are indicating that they are involved in the working environment related to corporate social responsibility (Ronnegard, 2010). Previous research has shown that most corporations are concerned with the safety and health standards in the working environment. The most organization reported to have the strong framework of safety procedures for their employees. They also reported to have the department that dealt with employees’ grievances. The majority also provided medical insurance for their employees (Cayreyre, et al, 2009).
Many organizations have taken initiatives to educate and prepare youth in the procedure referred to as “emiritization”. This can be attributed to the high proportion of youth in the country; 45% are below 15 years old. This procedure is offered by corporate to prepare young citizens to experiences in the work place. Various organizations have funded foundations which educate and train young people, and those with special needs, to promote entrepreneurship, encourage innovation and improve business skills. The enforcement of Emiratisation by the government has led to malpractices in the corporate, where some organizations are hiring ghost workers to meet requirements of the government. Religious values have also shaped the corporate social responsibility response by companies. The government has had the tremendous influence on ensuring the corporate practice of corporate social responsibility to ensure the development of the better environment(Ronnegard, 2010).
Corporate social responsibility is a broad term used to express the role of business in ensuring maintenance of decent social environment, development of the community economy, ensure fair trade and respect for human rights. Broadly, there are three approaches to corporate social responsibility; they include philanthropist approach, environmental approach and internal environment approach.
This paper has mainly analyzed the internal environment approach, which is primarily dominated by employees of the organization. Various factors that affect employees in the course of their duties are of immense importance since they are studying the internal environment. Various issues like economic factors, training and education for employees, and availability of equal opportunities are some factors that this paper has identified as critical. Dissatisfaction of employees due to poor safety and health standards and other factors has been identified as the main factor causing demoralization of employees. The effectiveness of the organization is pegged on the ability of the organization to maintain a satisfied workforce.
Internal environment corporate social responsibility has been found to be extremely relevant in the context of United Arab Emirates. Most firms are seen to be aware of corporate social responsibilities, but the majority of firms are not practicing. This has been due to various factors like lack of competence and resources to implement CSR practices. The majority of firms respect the internal environment CSR by putting in place procedures that protect the general welfare of workers, like proper health and safety standards. The Emiratisation program introduced by the government has led to an increased awareness and implementation of CSR practices.
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