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Introduction - Social Responsibility On Leadership
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The Rationale for the Research
Companies are progressively putting more emphasis on social responsibility, whether it’s supporting women’s rights, preserving the environment, or trying to eradicate poverty on a local, national, or global scales. Businesses with a strong social conscience provide a more appealing image to the public and to their customers and shareholders, which benefits their bottom lines. A company’s long-term success is dependent on its ability to attract and keep consumers, and adopting socially responsible practices may help it achieve this goal. Furthermore, many people would happily pay a premium for products if they know that a portion of the earnings will be used to support social issues that are close to their hearts and minds (Fernández?Gago, Cabeza?García & Godos?Díez, 2020). Companies that contribute to the betterment of the local community may also expect to see an increase in foot traffic. As an example, banks that provide loans to low-income families are more likely to experience an increase in business as a consequence of the stimulus package.
For instance, a business’s primary priority is to make profit while also meeting the needs of the community. Every member of society owes something to it. They must adhere to accepted social ideals and behavioural norms. Society grants permission to a company to engage in commercial or industrial activity with the goal of making a profit. However, on the commercial side, it is mandatory not to do something that is socially unfavourable (Wigmore-Álvarez, Ruiz-Lozano & Fernández-Fernández, 2020). Undesirable practices from the perspective of society include the production and sale of contaminated goods, the failure to pay required taxes, and the performance of misleading, environmentally damaging work exploitation. In this regard, adhering to business social responsibilities are most soliciting ways of becoming community-centric and socially engaging for businesses.
This means that the impact of business on social development is multifaceted and may be assessed in a variety of ways If a business wants to advance and grow, it must cultivate relationships with the many stakeholders that exist. Customers, suppliers, and workers are just a few of the many stakeholders who have a significant impact on a company’s long-term viability (Voronkova et al, 2020). Considering these aspects, the following research strives to evaluate how being socially responsible effects a business dynamic by rationalising the key effects of social responsibilities by means of analysing the aspects of CSR practices that have on the business goal attainment and performance. In this regard, the research evaluates some key theoretical prospects associated with social responsibility and also evaluates the real-life experiences and opinions of industrial of varied businesses. Thus, by conducting comprehensive interview and gathering qualitative data regarding the perceived questions the research formalises substantive learning the subject concerned.
2. Research questions and research objectives
2.1 Research questions
Research questions are based on a set of questions that are asked in a research paper in order to find specific answers for the search project. Selecting some research questions is very important for both quantitative and qualitative. Research questions help the researchers to be guided towards the successful attainment of the research objectives. Research questions also help in creating strategies for the successful conduction of the research.
The research questions include:
What is the importance of social responsibility in an organization?
How does corporate social responsibility also impact the leadership of an organization?
What are the benefits of corporate social responsibility?
How does corporate social responsibility develop the performance of the organization?
How does Corporate Social Responsibility help the leaders in attaining the goals of the company?
2.2 Research objectives
Corporate social responsibility has become one of the most prominent trends of the current organization. The research is based on identifying the advantages of corporate social responsibility in creating a positive outcome for the company. The paper is focusing on the different aspects of corporate social responsibility. The primary objectives of the research paper are:
To identify the importance and significance of corporate social responsibility on leadership.
To identify how CSR influences the social responsibilities of the organization
To analyse how socially responsible values helps in influencing the goals of the organisation
To recognize the various benefits of social responsibility on organisational performance
3. Literature review
The companies now focus on implementing corporate social responsibility for attaining loyalty and satisfaction from the customers and developing the performance rate of the company. The benefits of corporate social responsibility in organizational performance and development are huge.
3.1 Understanding the concept of Corporate social responsibility
Corporate social responsibility defines the process of ethical operation in a company. Corporate social responsibility is brought into an organization when the company manages different social and environmental impacts and brings sustainability to the organization. In simple language, CSR defines an ethical and careful consideration of different aspects including society environment and the community in which the organization functions. It is also the self-regulation process of a business organization focusing on the contribution to the environmental and social objectives by ethical practices and operations in the organization. It is a strategic movement of an organization for developing the reputation of the brand, brand value, brand image, customer satisfaction, a boost of the performance rate of the organization, and organizational development and growth (Tamvada, 2020).
3.2 Importance of CSR on the leadership of the organization
The relationship between corporate social responsibility and leadership is widely interconnected to each other. As the need to bring ethics into the business organization has become a trend, the role of leadership in successfully implementing corporate social responsibility in the organization has also become a universal need of business organizations. But the implementation of corporate social responsibility has also become one of the major challenges for business organizations. Leadership plays a very significant and crucial role in maintaining ethics in the organization. The leaders of the organization promote the ethical behavior of the employees (De Roeck and Farooq, 2018). As they depend on the guidance and support of the leaders, it is a must for organizational leaders to shape the company with the help of their own morals, characteristics, and ethical values. The leaders are the most prominent figures in the organization to implement corporate social responsibility and guide the employees to implement ethics and moral values in the organization. The leaders of the organizations try to share the ethical values and morals among the employees to improve their behaviour.
Ethical leaders do not evaluate the contributions of the employees and thus they contribute to the corporate social responsibility in the organizations. The leaders also show their moral and ethical values by taking all the liabilities and responsibilities for making decisions. They implement incentives, penalties to motivate and encourage the employees and boost their satisfaction level and by using ethics and morals they also generate fair recruitment, equal payment, and incentive systems in the workplace.
As stated by Kong et al., (2021), leaders try to create an ethically developed work environment by banning all forms of unethical values, and behaviour. Corporate social responsibility makes the leaders become responsible for all the actions and operations of the organizations to be performed by considering the environmental and social aspects. The main aim of the leaders is to organize the behaviour of the employees in an ethical manner. When the leaders have their own morals and values, it helps the entire organization and the organizational employees to be equipped with morals. They can understand their responsibility towards society and the environment. This is how the leadership and the CSR are connected to each other (Khan et al., 2018).
3.3 Evaluating the key Benefits of CSR incorporation
Organizations nowadays try to bring sustainability to the companies. corporate social responsibility in this regard has huge importance. When the organizational leaders implement ethics, moral, social, and environmental responsibilities in the organizational goal and objectives. CSR helps not only in maintaining ethical behavior within the organization but also it helps in generating the performance level of the organization. It also supports the organization in achieving the organizational goals and objectives of becoming a socially and environmentally responsible company.
CSR helps in achieving organizational goals and a good performance
Implementing social and environmental responsibilities in the organization the leaders try to make the employees responsible for their own actions. An organizational objective is to become a sustainable company and the organizational growth and development. Maintaining morals and helping the employees become responsible for their actions and to the society and environment, corporate social responsibility helps in achieving the organizational goals of a sustainable company.
Social responsibility also helps in achieving the objectives of the organization by helping the leaders perform their actions and activities with the help of ethics and models. An efficient leader tries to influence the employees with good ethics and morals within the workforce. Corporate social responsibility helps in developing the performance of the organization and the marketplace (Kim and Thapa, 2018). Leaders want the work environment to be flourished with good moral behavior and good ambiance. It can help in generating a robust communication system in the workplace which helps in bringing resilience and sustainability to the company.
The CSR also helps in maintaining all the environmental factors including environmental pollution, carbon emission, etc. Organization leaders need to maintain all the societal needs and requirements of the communities by maintaining the environmental factors. By providing the customers with environmentally friendly products and using environmentally friendly processes can also highlight the organizational responsibility towards the environment and society. The organization thus can improve its performance level in the marketplace. It helps in improving the performance rate of the organization as well as achieving the organizational goals and objectives (Saha et al., 2020).
3.4 Ascertaining how CSR leaders to bring sustainability to the organization
When the leaders maintain the moral and ethical values to the society, environment, and people, it helps the leaders improve employee retention. The employees think that their organization maintains the environmental safeguards. By providing the employees with equal pay for equal work, maintaining anti-discrimination, valuing the employees, and giving them importance can help the employees increase their satisfaction and trust in the organization which in turn helps in generating employee retention. Thereby, it also helps in building employee commitment (Almeida and Coelho, 2019). Providing opportunities to people from all backgrounds can be also another important factor for boosting the sustainability and performance of the organization. The leaders need to maintain the protocols of recruiting people depending on their talents and skills that can generate employee trust and satisfaction.
4.1 Description of the participants of the study
4.1.1 Sampling technique
The data sampling technique is one of the most crucial strategies used for collecting information. Data sampling is associated with the procedure for the selection of effective samples for the research paper. Data sampling technique is of two types the first is probability and the second is non-probability sampling technique. In quantitative data, the probability sampling technique is used. The research paper is focusing on conducting interviews and questionnaires with a group of individuals participating in the interview and questionnaires series. The sampling method helps in choosing the group of participants who can participate in the research paper (Deshpande and Girme, 2019). Without collecting information from a single person, the sampling method rather helps in selecting a group of individuals for gathering relevant information. Types of techniques used in the sampling method are probability sampling and non-probability sampling. In the probability sampling are random and selection is done on the basis of a group instead of a selection of an individual.
On the other hand, the non-probability sampling technique defines selection not based on any random process but involves using participants on the basis of needs and criteria to help the researchers get relevant information easily and without making any effort. Only the individuals having knowledge and skills about corporate social responsibility and leadership are chosen in the sampling technique to gather relevant information. It helps the researchers avoid unnecessary and irrelevant information. For gathering qualitative data, a non-probability technique is used in the data sampling method. As the research paper has used a qualitative data collection process, the non-probability sampling techniques are used as per the suitability and advantage. By using this technique, a group of individuals including managers, leaders, and employees is selected. It has helped in reaching the research outcome easily by finding all the required data to get proper answers to the research question (Whitehead and Whitehead, 2020).
In the research data collection process, many participants have joined to provide information and data as per their knowledge. The researchers have got support from some organizational leaders and managers who have skills in CSR and its impact on organizational leadership. As the qualitative data collection process permits a limited number of participants depending on the number need to meet the requirements of elements. For the interview, three leaders and two managers participated and all of them have knowledge of CSR. Participants are chosen as per the requirements. For the information on the perspectives of the CSR and leadership a group of managers from ABC and XYZ Company has been chosen, for the information based on experience level, the leaders of the Company have been chosen. The employees of these two organizations are also selected to understand their perspectives on the implementation of ethical and moral values in the organization to build a corporate socially responsible company. Using the sampling method, the researchers have been greatly benefitted to collect exact and appropriate information from the leaders and managers.
4.1.2 Description of the intervention or data collection tools
Data collection tools define various instruments and devices that are used for gathering information and data. Different and numerous methodologies are used for the data collection process and data analysis. Tools and techniques used for the data collection process have good fundamentals. Data collection tools and techniques that are very important to be used in the research paper include interviews service observation, photography, focus group discussions questionnaires, and case study analysis. The purpose of data collection is to capture and grab the quality-based data and information that can help in generating the relevant and necessary answers to the research questions (Islam, 2020).
The interview is conducted for gathering relevant information from the individuals participating in the interview with the help of a face-to-face conversation with them. The main purpose of conducting an interview is to collect data for satisfying the search goals and to find the relevant answers to the research questions. The interview is conducted in three forms including structured, semi-structured, and unstructured form. In this research paper, the interview has been conducted among five leaders and managers of five different organizations together with information about corporate social responsibility and leadership (Parveen, 2017).
An unstructured interview has been organized. In the form of an interview that is generated for gathering information in detail and depth. Types of the interview the researchers have been benefited to gather information in a wide range to satisfy their purpose of generating ideas about the importance of corporate social responsibility. This type of interview is an in-depth form and has many benefits and advantages. It gives a wide range of freedom and flexibility to the researchers to combine an effective structure to organize the data collection process. Therefore, the researchers of this paper have become able to gather accurate and correct data directly from the participants (Showkat and Parveen, 2017). This type of data collection tool has another significant dimension for generating quality-based information through a questionnaire series. Some participants have participated in the questionnaire that has been conducted online. Some participants can join the question as it is online therefore the researchers can gather various information and data from a wide range of populations (Ricci et al., 2019).
In this research paper, the researchers have also found much evidence from the participants who have relevant knowledge and interest in providing data about corporate social responsibility. Many participants have also provided information about their practices in their organizations to implement corporate social responsibility. It helped the researchers draw an effective analysis based on the findings. Thus, in this method, a small group of individuals and participants having the knowledge and skills of a particular subject is chosen. This type of data collection is used for monitoring the participants and finding attitudes and regarding the particular topic (Mwale, 2018). In this research paper, the participants are invited to join the focus group discussion for finding the perceptions of the individuals on the topic of corporate social responsibility and its impact on leadership. This data collection tool has helped the researcher’s collect information about the benefits of corporate social responsibility and its impact on building organizational performance in achieving organizational goals.
4.1.3 A detailed description of the data collection process
In a research paper, the data collection process has a significant and very crucial effect. For achieving the desired research outcomes and phrases to the collection are used. The data collection process mainly consists of two types: primary and secondary data analysis. Both the two data collection processes have a significant impact on research results.
As per Sylvia, (2018), the primary data collection process defines the process of collecting and gathering information with help of different interviews, questionnaires, surveys, and experiments. In this type of data collection process, the searchers can ensure that the information and data collected through the deregulation process team the reliability quality statistics that are required for the specific research questions.
The primary data has also become one of the most predominant sources for the data collection process as there is an increase in the data collection methods like different survey tools, manuals, and survey firms. Without the data collection process, the researcher can face many challenges in achieving the result of the research. In this research paper, several questionnaires and interviews have been arranged for gathering relevant information and data regarding the importance of corporate social responsibility in an organization and on leadership. Questionnaires, interviews, and observations are used in the primary data collection process of the research paper. It has provided enough support and assistance to collect information regarding corporate social responsibility and its benefits on developing organizational performance and attaining goals and objectives.
The primary data collection process has also two types of qualitative and quantitative data collection processes (Sylvia, 2018). In this research paper, the primary data collection process has been used. The qualitative data collection process has significantly been utilized to provide relevant outcome and result regarding the research paper. In this research paper on corporate social responsibility qualitative data has been used by the researchers. Qualitative data defines the conceptual and descriptive findings of information that are gathered by using relevant interviews, observations, and questionnaires (Adhabi and Anozie, 2017). In this research paper, the qualitative data has helped in building different ideas and understanding power on social responsibility and its relationship with leadership. Qualitative data analysis has very significant importance because it helps in generating rich, elaborating, and detailed analysis of the information that is shared by the participants and individuals from the different questionnaires and interviews organized by the researchers. It has also a huge potential in building the thinking power of the searches to understand the complex system.
It also helps the researchers in implementing the policies, schemes, and programs that can be helpful in getting information through direct interaction with people. It is also very powerful in providing relevant data because it gathers information directly from the participants. Information and data are gathered by observing the body language, gestures of the participants. therefore, the qualitative data collection process is very significant and has a great contribution to the data collection process. The researchers have used the qualitative data in this research paper to understand the thoughts and ideas of the participants on corporate social responsibility and its importance on leadership. It thereby makes a significant analysis of the findings.
5. Data analysis & presentation of results of findings
Thus, considering the methodological prospect of the research, a comprehensive semi-structured interview is constructed in the following involving respondents from different organisations with their valid experiences of social responsibilities and CSRs. Due to ethical reasons the identity and background of these interviewees are maintained as anonymous. The key questions and the responses are as follows:
Q1: Why do you think social responsibility is crucial for the modern-day leaders and businesses?
Regarding this matter I can say that a growing number of businesses are placing a greater emphasis on social responsibility, whether it is promoting women’s rights, preserving the environment, or working to eradicate poverty on a local, national, or international scale. From the viewpoint of optics, businesses that are socially responsible present a more appealing image to both customers and shareholders, which benefits their financial performance. Adopting socially responsible practices helps a company’s long-term performance by attracting and keeping consumers. People would happily pay a premium for products if they know that a portion of the revenues will go to social causes that are important to them. Improved community relations may also lead to greater foot traffic for businesses. There will be an increase in business for banks that give out loans to low-income families, for example.
So, when I say why it’s crucial, I can very much imply that a company’s image and brand may be bolstered by being socially responsible. It also gives workers the ability to use the company’s resources to accomplish good. Besides this, formal corporate social responsibility initiatives may improve the morale of employees and therefore increase staff productivity. As a result, businesses and their leaders will see an increase in foot traffic if they work to improve the communities.
Q2: What are the key benefits of Corporate Social Responsibility
When it comes CSR, we can very well think of more than one type of benefit, for instance, a company’s reputation as a socially responsible one may be enhanced via CSR, giving you a competitive edge. Suppliers with responsible practices are often preferred by companies since their consumers will see them favourably. Moreover, you can assist the environment while saving money at the same time by decreasing your use of resources, waste, and emissions. You may be able to reduce your energy costs and save money for your company by taking a few easy measures and finally learn how to save money by reducing corporate wastage.
Q3: How Corporate Social Responsibility makes leaders and business more socially responsible?
Setting the tone for productivity, a company's culture of social responsibility and ethical leadership aids the organization's leaders in connecting with the real-life problems of its workers, customers, and other stakeholders. A company's social duty and ethical leadership extends well beyond just handling the routine business operations. All procedures and processes must be ethical for corporate governance to be effective as a holistic concept. People who are concerned about their social duties, such as business executives, often hire outside auditors to check their financial records and provide guidance on how to best communicate sensitive information to the general public.
Similar to legal experts, customer focus groups keep businesses informed about consumer desires and requirements by providing information on ethical HR practices. Apart from this, social responsibility also helps to make leaders more socially and ethically committed, being more concerning towards the external factors and be more thoughtful regarding business decisions that projects businesses towards sustainability and social acceptance more effectively.
Q4: How implication of CSR practices influences the organisational goals and objectives?
Corporate social responsibility (CSR) used to be dismissed as idealistic, if not downright foolish. Because of public outrage over corporate scandals and environmental catastrophes, many corporations now have CSR departments, and top firms are starting to see csr as a wide approach that must be incorporated into corporate strategy at all levels of the company. People and organizations are starting to think "Green" with a far greater focus on developing a broad-based strategic approach to CSR, and creating an action plan with specific, measurable targets that will help the firm live up to its reputation as a responsible corporate citizen. It's possible that environmental responsibility is the most significant CSR factor in the eyes of the general public.
Q5: How social responsibility helps businesses in goal attainment?
Companies that practice social responsibility have better brand awareness, more loyal customers, and a higher level of employee attraction. Increased profitability and long-term financial success can be attained by incorporating these factors into your business strategy. Becoming socially responsible can assist businesses in obtaining funding, increasing staff productivity, and fostering innovation, collaboration, all of which can contribute to lower expenses for the company. To summarize, being socially conscious has numerous advantages which drives businesses to peruse more responsible goals and attain sustainable achievements extensively.
Q6: How fostering social responsibilities help businesses to elevate its performance?
In my knowledge, being socially conscious helps a business get credibility. It demonstrates the fact that your business is more than just a source of revenue. More individuals become aware of your firm and the wonderful job that it is doing for the world around them. The more customers you have who trust your company, the better your brand’s image will be. This eventually leads to more engagement between the business and its customers, development of emotional boding which gradually leads to more sales and contributes to organisational performance.
Q7: Overall, what is your view towards social responsibility and its role for organisational betterment?
When it comes to social responsibility the organisational betterment is just one aspect as community betterment is the forefront of every socially responsible initiative. There are numerous ways for companies to show they social responsibility towards the community. They can give fundings to the worthy causes like education, the arts, and animal welfare, or they can pledge to do things like limit their environmental impact, hire fairly, sponsor events, and only do business with companies who share their values. They can also engage in CSR by refraining from socially destructive acts, or by doing things that directly advance social goals which eventually improves the social standing of the businesses and define their goals and performances in a substantial manner.
6. Conclusions, implications, and recommendations
By evaluating the learnings developed in the research it can be stated that today’s business environment is very competitive, making it difficult for a firm to distinguish itself from the competition in the eyes of consumers. Socially responsible companies, on the other hand, may gain customers and build a platform to advertise and attract the attention of their target audience. People are more likely to see business favourably if it exhibits social responsibility. Taking on new initiatives with team is a great way to give back to the community while also keeping the company in the public eye. Thus, according to the findings and its rationalised learnings it can be conceptualised that social responsibility implications helps companies to build sustainable objectives for longer-terms and aids in improving consumer relations, social standing and reputation extensively. This eventually leads to increasing sales and market performance which compliments the growth and supports the performance elevation of the business.
It is possible for organizations to be sustainable if they pay close attention to their social and environmental impacts. Transparency and ethics go hand in hand in protecting societies and the environment’s long-term well-being which acts as the key implications for social responsibility. Thus, for defining the organisational gaols and its performances adherence to socially responsible tenet would be most prominent which is known as “People, Planet and Profit”. When this concept is incorporated, profit may be achieved without harming the environment or exploiting people (Almeida and Coelho, 2019). It thus acts as a w ay for companies to earn profit while simultaneously doing good for the environment and people, based on which organisational goals can be stimulated and performance can be achieved.
The greatest application of ethical social responsibility is the formulation of strategic CSR initiatives. However, to foster the implication social responsibility for the betterment of goal attainment and performance businesses can structure prominent values and visions its culture, development of long-term objectives would also be an intricate approach (Almeida and Coelho, 2019). Lastly, for the sake of the company's performance, businesses may also aim to properly compensate workers as well as motivate them to be more socially engaging and compliant which will ultimately improve the organisational performance as well integrity in the market.
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