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Corporate Social Responsibility is a significant issue of a multinational company or even a small company. CSR is a key initiative and an essential tool to enlarge company's business and reputation. Currently, most companies have already recognized that they have to obtain respect and confidence from their customer in order to achieve the company's goal. This report includes 3 parts, review of current academic thinking of CSR, CSR of gambling company and recommendations and conclusion.
Review of CSR literature
Kotler and Lee (2005) define corporate social responsibility as 'corporate social responsibility is a commitment to improve community well-being through discretionary business practices and contributions of corporate resource (p.3).' Drucker(1989) also outlined 3 things which corporation should to do for society.
First social responsibility is to do their job. Then they have duty to take care of their customers, the community as well as society. Final duty is they do thing which is unnecessary for them to do.
Corporation should consider own CSR issue of their business.
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Additionally, Carroll(1999) described four elements of corporate social responsibility: economic element is the basic responsibility for company to maximize profit and grow; legal element is company should obey the law; ethical element is respect other's right and meet their obligation; discretionary element include philanthropic activities which improve community well-being.
Milton Friedman introduced the traditional view of the corporate social responsibility. Pava and Krausz (1996) summarized Friedman's concept that the managers of company have the responsibility to maximize firm value for the shareholders, have no obligation to engage in the socially-responsibility projects which are not able to increase company's profit.
These papers of Anderson and Frankle (1980) as wellas Aupperle, Caroll and Hatfield(1985) find no significant relationship between corporate social responsibility and corporate performance.
However, McWilliams and Siegel (2000) mentioned that customers, community groups as well as some shareholders encouraged firms to invest in corporate social responsibility. Additionally, some corporations have already considered devoting more company resource to CSR. The study of McGuire,Sundgren and Schneeweis(1988) suggests that some aspects of firm performance may be influenced by social responsibility in different ways. They also pointed out that a corporation with a high degree of corporate social responsibility has relatively low financial risk and has a stable relationship with government and financial community.
A paper by Fomburn and Shanley (1990) points out that CSR activity is an important issue of a corporation to produce differentiation product and build its reputation. McWilliams, Siegel and Wright (2006) stressed Freeman's stakeholder theory that managers have to satisfy workers, customers, suppliers as well as local community due to they can affect company outcomes. Furthermore, stakeholder theory implies that company can get benefits from attending CSR activities. Becchetti, DiGiacomo and Pinnacchio(2005) point out that these papers by Stanwick and Stanwick (1998) and by Verschoor (1998). Ruf et al. (2001) find that CSR has the positive relationship with growth rate of sales and income.
CSR of gambling company( TabCorp) The gambling industry faces more serious situation of social responsibility than the other industry, which the reason is gambling lead to negative impacts for the society. Additionally, the gambling industry grew dramatically in the past 20 years. There are more new gambling games in the casinos and totalisators. We select TabCorp which is one of Australian gambling company with three main business units: Wagering, Casinos and Gaming(TabCorp website) as an example to discuses the social issues which include ethical, environment and social responsibility policies.
TabCorp has developed a code of conduct for employees. It is able to build ethical and behavioral standard for all staffs. This code of conduct includes equal employment opportunity, discrimination and workplace harassment. Therefore, employees have the equal opportunity to learn, grow and develop in TabCorp. This can motive employees work harder in order to improve working performance. Furthermore, TabCorp offer OH&S program to the employees. Both employees and employers can monitor the effectiveness of OH&S Program. This program cover health, well-being and safety matter in the workplace (TabCorp Website).
Environmental issue also is an important of a company. TabCorp voluntary participants in the Federal Government's Greenhouse Challenge Plus Program. TabCorp agrees to reduce the impact on the environment such as minimizing the consumption of energy and water, operating the organization effectively. According to TabCorp's 2008 annual report that TabCorp's hotel and casinos have reduced 23% of water usage over the last 5 year. In 2007, replacement of lighting and air-condition systems were implemented in order to minimizing greenhouse gas emissions.
TabCorp group is willing to join in community. Camp Quality is the community partnership. They bring hope and happiness to children living with cancer. In 2009, TabCorp group donated 2 million cash to the Victorian Bushfire Relief Fund to help the people who lost the home in this bushfire. Additionally, TabCorp donated 92.8 million to community benefit fund in Victoria, New South Wales and Queensland. ( 2009, TabCorp annual report).
Crown Ltd is another company which operates casinos in Australia. Compared with TabCorp, the code of conduct of Crown is simpler than TabCorp's even though the code of conduct divides into 2 parts: code of conduct for employees and code of conduct for directors. They just simply mention common rule in the workplace without describing specific conditions. As a community member, Crown also participants some social activities such as donating 500,000 to the Victorian Bushfire Appeal and Burswood's community program. Crown also implements environment policy to effectively use energy.
Recommendations and conclusion There are three options for TabCrop to implement: corporate philanthropy, community volunteering. TabCorp can make direct contribution to the society. Kotler;Lee(2005) stress some typical programs to implement such as providing cash donations, offering grants, awarding scholarships, donating products, donating services, providing technical expertise, allowing the use of facilities and offering the use of equipments. TabCorp can build social reputation, catch notional attention, build and secure a strong brand position as well as have an impact on local community during doing philanthropic activities.
TabCorp should support and encourage employees, business partners to engage in community volunteering. TabCorp can obtain some potential benefits from this activity. It is propitious to build genuine relationship in the local community, enhance corporate image and increase employee satisfaction and motivation. Typical programs are stressed by Kotler;Lee include environment volunteering, health and safety-relate projects etc.
These activities relate to corporate social responsibility can help company build social reputation and increase employee satisfaction which can impact on corporate performance. Additionally, it also can minimise the negative impacts of people gambling at the casinos and totalisators.
Reference
Anderson J., Frankle A. (1980), 'Voluntary Social Report: An Iso-Beta Portfolio Analysis', Accounting Review,Vol.55,pp468-479.
Aupperle K. E., Caroll A.B., Hatfield J.B. (1985), 'An empirical examination of the relationship between corporate social responsibility and profitability', Academy of Management Journal,Vol. 28,pp.446-463.
Carroll,A(1999), 'Corporate Social Responsibility:Evolution of a Definitional Construct',Business and Society Vol.38,No.3,pp.268-295.
Cown n.d Community and the Environment viewed, 25-May2010
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