CSR in the Telecommunications Industry

Definition of CSR According to Baker (2004), corporate social responsibility (also known as corporate citizenship, corporate conscience, sustainable responsible business, or social performance) simply refers to â€Å"how companies manage the business processes to produce an overall positive impact on society.†Advertising We will write a custom essay sample on CSR in the Telecommunications Industry specifically for you for only $16.05 $11/page Learn More In this definition, Baker emphasizes that companies need to fundamentally answer to two major aspects of their operations. Firstly, they must be answerable about the quality of their management and secondly, they must answer about the nature of their operations and the impact to the society. Different regions have their own customized understanding of CSR based on the differences in occurrences and endeavors in their areas. For example, in USA, CSR is mostly viewed in terms of a â€Å"philanthropi c model† where companies conduct their businesses with the aim of making profits and contributing to charitable causes as a showing that they are responsible in the corporate world (Baker, 2004). In Europe, the concept of the ‘end justifying the means† allegedly opined in USA’s CSR practices, is replaced by the exact opposite where â€Å"the means justifies the end† (Lattemann et al., 2009). Studies in Africa and Australia are still inconclusive because only a handful of researches have been done (Idemudia, 2011). In UAE and Asia, however, studies show that there is a hybrid of the US and European Models thus different countries in these regions viewing CSR differently (Ihlen et al., 2011). Notably, all these definitions assert that stakeholders and shareholders play a vital role in CSR practices of any industry. It is with this in mind that the CSR practices in the telecommunications industry (especially in the UAE region) will be discussed. Brief Ba ckground of CSR Practices Just like in most industries, CSR in the telecommunications industry can be historically categorized into two factions which are traditional CSR and modern CSR.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More According to Jamali (2007), in the traditional era, a scholar named Carol l asserted that industries showed their corporate social responsibility to stakeholders and shareholders by conducting their businesses in ways that were economically, legally, ethically, and discretionarily viable to their industries. However, as time went by, Jamali says that the traditional perception of CSR was replaced with a modern one where CSR was majorly viewed economically with companies using it to impose their dominance while their customers using it as a ladder into the economic benefits from these companies. More specifically, Schutter (2008) says â€Å"although its roots are of course older, the concept of CSR emerged in the recent official EU discourse with the Conclusions of the Lisbon European Council of March 2000.† The CSR era that began in the mid 1990’s and evolved to a formidable venture in the early 21st century (starting with this EU meeting) is what most researchers refer to as the modern CSR era (Jamali, 2007). Today, CSR has undergone several changes with the terms being used variably, as was earlier mentioned. In the telecommunication Industry, especially in UAE, CSR encompasses activities such as supporting education, raising awareness on various issues such as sicknesses and environment conservation, and supporting the needy people in communities (Schutter, 2008). Approaches to CSR Practices Theoretically, there are several ways in which scholars approach CSR practices. However, in the industrial world, Tang and Li (2009) say that there are â€Å"three distinctive approaches to CSR: CSR as ad hoc philanthropy, CSR as st rategic philanthropy, and CSR as ethical business conduct.† These approaches are the ones that relevantly apply to CSR in the telecommunication industry in UAE and thus will be our main focus.Advertising We will write a custom essay sample on CSR in the Telecommunications Industry specifically for you for only $16.05 $11/page Learn More As an ad hoc philanthropy, emphasis on CSR is laid on â€Å"discretionary rationality, i.e. corporations need to contribute to the welfare of society† (Tang Li, 2009). In the telecommunication industry, involvement in CSR is typified by engagement in activities such as sports, education, disaster relief, cultural programs, poverty alleviation programs, and health issues. The strategic philosophy approach is almost similar to CSR as ad hoc philanthropy except that, in the strategic philanthropy, themes engaged in are mostly based on specializations by the involved companies (Tang Li, 2009). For example, a c ompany concerned with disability can contribute towards education of disabled children. Such initiatives go beyond normal charities as the victims and company both end up benefiting (Jamali, 2007). In the ethical business conduct approach, the ideologies are â€Å"based on economic, legal and ethical rationalities† (Tang Li, 2009). In other words, the major issues dealt with here entail ethical business practices such as good handling of customers, fairness in treatment of employers and professional ethics in the engagements with shareholders or even stakeholders (Neu et al., 1988). More specifically, the ethical business conduct approach encourages transparency and accountability of company operations (Poitevin, 1990).Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More In most cases, CSR as an ethical conduct is facilitated through industry policies. The advantages and disadvantages of these approaches in the telecommunication industry are given below. Importance/Advantages of CSR Practice Most of the advantages of CSR have been partly mentioned in the discussions above. However, in summary, CSR offers the following advantages: CSR is recognized widely as an effective way of managing threats to organizational legitimacy. CSR creates an important social capital that helps societies to adjust to harsh realities while encouraging good interrelations among various people. Helps in attracting long-term capital and favorable financial conditions. Helps in raising awareness, staff motivation and attracting new talent. Encourages utmost responsibility by companies and people in various aspects. Facilitates transparency and accountability by organizations. Encourages innovation and creativity while enhancing one’s reputation. Encourages economic de velopment and environmental conservation. Accentuating social stability and general well-being of the concerned populace. Demerits, Challenges and Limitations of CSR Practices On the downside, the following disadvantages have been found: International corporations are often faced with issues like trade barriers which limit full efficacy of CSR initiatives. If mismanaged, CSR can be a very dangerous tool for negative manipulation by those in power. Acclimatizing to various laws, ethics, regulations and rules can be quite difficult—especially for international companies. The presence of various approaches to CSR makes it a viable subject for misinterpretations. Creating a working framework for implementation of CSR practices can be quite strenuous and costly. Some people or companies tend to be overly and non-deservingly favored by the goodwill from CSR practices. Conclusion In conclusion, it is worth stating that change is a gradual process and whatever steps taken in the r ight direction always add up to something significant. Commendably, a lot has been done by the telecommunication industry in UAE to improve its CSR endeavours. However, there is still more that needs to be done in order for them to find ways of strongly sustaining itself and staying devoid of its challenges. References Baker, M. (2004). Corporate social responsibility – what does it mean? Retrieved from http://www.mallenbaker.net/article/clear-reflection/definitions-of-corporate-social-responsibility-what-is-csr Idemudia, U. (2011). Corporate social responsibility and developing countries: moving the critical CSR research agenda in Africa forward. Progress in Development Studies, 11(1), 1-18. Ihlen, Y., Bartlett, J., May, S. (2011). The handbook of communication and corporate social responsibility. New York: John Wiley and Sons. Jamali, D. (2007). The case for strategic corporate social responsibility in developing countries. Business and Society review, 112(1), 1-27. Lattem an, C., Fetscherin, M., Alon, I., Li, S., Schneider, A. (2009). CSR communication intensity in Chinese and Indian multinational companies. Corporate Governance: An international Review, 17(4), 426-442. Neu, D., Warsame, H., Pedwell, K. (1998). Managing public impressions: environmental disclosures in annual reports. Accounting, Organizations and Society, 23(3), 265–282. Poitevin, M. (1990). Strategic financial signaling. International Journal of Industrial Organization, 4, 499–518. Shutter, O. D. (2008). Corporate social responsibility European style. European Law Journal, 14(2), 203-236. Tang, L., Li, H. (2009). Corporate social responsibility communication of Chinese and global corporations in China. Public Relations Review, 35, 199-212. This essay on CSR in the Telecommunications Industry was written and submitted by user Colleen Wing to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.