Website Corporate Social Responsibility, Research Paper Example

Abstract

GlaxoSmithKiline(GSK) has a CSR division located in United Arab Emirate, which GSK utilize the Internet to deliver their CSR message to UAE. (GSK) found that the investment in the social responsibility is demanded by the United Arab Emirate leadership. There is an emerging trend that corporations are investing CSR activities to ensure business objectives are aligned with social responsibilities. The public has lost the confidence in corporations providing support to the local communities because corporations are more concerned with profit versus CSR.  Many corporations have been damaged their reputations while losing the trust of the public because of a lack of (CSR).  The primary goal of the paper is to exam GlaxcoSmithKlines website to determine .if they are meeting CSR responsibilities and compare to how it was communicated globally. The aim of this paper is to analyze Corporate Social Responsibility (CSR) from the corporate websites to determine if the corporation is fulfilling their CSR responsibilities in the United Arab Emirate communities.

Website Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) should exist within every company’s infrastructure; however, social integrity is not something that is often at the forefront of modern day business dealings.  Companies that have made CSR a central part of their businesses are reaping the benefits in the form of company sustainability, reducing liabilities, and insurance costs, as well as improved brand image (Raman& Nair, 2012, pg.72). For instance, a non-ethical company using dirty water for communities to drink and they try to cover it up instead being corporate compliant. In the end, they face lawsuits and lose public trust. In order to be successful, a business must meet the social expectations from society. This company provided a look into the greed in America that ignored business ethics. Business ethics is important to business community, consumers and the society at large. The most common belief that “good ethics is good business” is a true comment (Shinde, 2013, pg.1).CSR are corporate social opportunity, corporate responsibility, responsible business and corporate citizenship. CSR is “the social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that society has of organizations at a given point in time (Punitha & Rasdi, 2013, pg. 80). The media is watching as corporations are practicing improve business ethics, however, this was forced on corporations because the speed of technology that delivers the message when they are not helping local communities. To have social responsibilities, the suppliers, business associates, and customers would be more confidence on the organization. Therefore, the products and services of the organizations increase and lead to maximize profit. The model is more sustainable because social responsibility becomes an integral part of the wealth creation process – which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society. “Corporate Social Responsibility  is a concept by which companies integrate environmental and social tasks in to their business activities and to the relationships with stakeholders and  subjects who are interested in the company – on a basis  of voluntariness.“(Kornfeldova &Myskova, pg.91).

GlaxoSmithKline(GSK) Website

The website provides access to the GlaxoSmithKline (GSK) website for United Arab Emirates. However, the information does not show what GSK has contributed to the UAE community. The website has some resources about how GSK helps foreign countries but not very specific to UAE. The information is overall contributions to each country but the specifics of how GSK is helping the UAE community is not apparent. The same data does share the humanitarian contributions of free drugs for deadly diseases like malaria, but it difficult to measure the true contribution to the UAE community. The website represents the link to GSK related to the CSR office located in UAE, however do not give specific information about the community projects, does not list the amount of monetary contributions and does not provide any other reference to community services. The website was not providing useful information about their CSR activities. The information on the CSR website indicates that GSK is involved with communities world-wide. The website shows the pictures of children in Africa and the documentation is directed towards their medical contribution not community contribution. However, GlaxoSmithKline is not improving the communities in which they occupy.  GSK believes that their contribution to medicine is the gift to these communities which is the extent of the social responsibilities. GSK presents the CSR contribution as their medicine contributions in most of the global locations. According to GSK we talk of social development in Tribal population, we believe our contribution to health is meeting community responsibilities in desolated or desert communities.(GSK.India,2012).

Global CSR Websites

In contrast, the globally companies in UAE website presence is excellent because it uses the Internet to link to share the corporations activities and contributions to the community. Pepsico has an excellent website that provides the last project on the Web. The  PepsiCo Youth forum is creating a platform for  young teens of UAE to have a voice and be heard on the issues of social responsibility. It is only by empowering and engaging youth in this dialogue that we can help build a future generation of socially responsible leaders who can achieve progress and advance sustainable development in their societies (CSR Middle East, 2012). PepsiCo has a steady stream of community Internet articles concerning their community involvement in UAE and the Middle East. The corporation called Abdul LatifJameel  has a strong Web presence using a community initiatives CSR page, a community activities paged called  aljci.org and AdulLatifJameel utilized Facebook to spread the news about their how they improved the communities in the UAE. This organization has Jeddah Art Week, an initiative of Abdul LatifJameel Community Initiatives – aljci.org, welcomes participation from all those interested in contributing to Jeddah’s vibrant art and design culture.( Abdul LatifJameel Community Initiatives(2013). There is a paradigm shift of corporations globally that is using the Web to share their CSR contributions to communities while gaining understanding about the cultures and traditions that can lead to success CSR contributions to communities.

CSR and Culture

Glaxosmithkline (GSK) did the research on understanding CSR abroad and they learned from past mistakes in foreign countries. GSK found that many United States based companies did not understand that business ethics in United States is different from the business ethics in United Arab Emirate. In order to describe the evolution of the unique approaches to corporate governance that characterize the UAE, it is important to understand the environment in which ?rms operate and how these environments are evolving (Adawi & Rwegasira, 2011, pg.283).United Arab Emirate has a different set of values, traditions, and business acumen than any other county. Ethics directs human behavior and also differentiates between good and bad, right and wrong between fair and unfair human behavior or actions. It creates decency and discipline in the behavior of individuals and also in the society (Shinde, 2013, pg.1). The local traditions in United Arab Emirate were so easy to offend that GSK hired employees from United Arab Emirate to overcome that barrier. Ethics can be considered a set of standards that an individual or organization uses to guide actions of the individual or group. Corporations are under increasing pressure to play more than their traditional role of creating value for shareholders. However, managers are still struggling with how to systematically assess the value of corporate social responsibility (CSR) efforts” (Maltz &Ringold, pg.345). Therefore, ethical behavior can be seen as one aspect of a socially responsible company. A company cannot be socially responsible if it only looks after its economic and legal responsibilities. There are times when a company must do more than what is required by the letter of the law and consider what is ethical. This is especially true for multi-national organizations that operate in countries with varying legal responsibilities. The company must be driven by ethical standards beyond bare minimum legal requirements. In the news media, the public has lost confidence that corporations are being socially responsible to society and the community. The very foundation of corporate social responsibility (CSR) no longer exist, however, we do have some companies that are frontrunners. There are social and cultural factors are important to consider while creating and implementing a business strategy of a company. An implemented vision and strategy of excellence in organizational management, as well as of socially responsible conduct, can serve as the foundation of an organization’s long-term development and growth (Persic & Markic, pg.29).

These often-linked but somewhat different factors have diverse effects on the decisions of consumers and buyers, which is important not to always follow the same United States model for conduction business. The sociocultural factors are customs, lifestyles, and values that characterize a society, which lends into what the specific needs maybe for a culture. Arab culture is characterized by a more relaxed pace and less emphasis on punctuality than Western societies. Traditional families may be more comfortable with meetings that occur at a slower pace and may be less punctual in regard to meeting times (Haboush,2007,pg.197).Most firms assume the penetration in an overseas market is an uphill task; however, at times that is not always the case. GSK has changed that perception that corporations are not socially responsible.

Literature Review

The GSK and pharmaceutical strategies used key words in communicating to external and internal sources using the Internet technology.  GSK used the Internet communication channel to send the CSR message with key words that are important to communities and foreign locations like United Arab Emirates. The Internet communication allows for not only the corporation messages, however, the public has access to review social networking for any negative CSR information about the corporation. The study by Kornefldova (2011) provided an in depth look at how technology has change the thinking of corporations because the web transfer of information quickly allowing good and bad news to be access in hours not days.The advent of Web 2.0 and social media has provided an opportunity for ordinary citizens to report on an organization’s harmful or unethical behavior and share that information using social media platforms (Kornfeldova, 2011, pg.103).  It is clear that the CSR message by global companies are using the Web very effectively.

The communication channel not only includes the Web but GSK sends CSR information directly to the external and internal customers. This strategy spread the news that GSK gives back not only socially to United Arab Emirates location but also financially. In the media, GSK has been acknowledge in Ethical Magazine for excellent CSR in United Arab Emirates and other foreign countries. The GSK CSR study concluded that GSK was meeting CSR initiatives and making a different by reinvesting 20% of its profits from sales of medicines  to support the countries of healthcare issues”(Global Health Progress,2012,pg.1). The CSR responsibilities are best shown by companies that promote Global Health. GSK is the leader of the pack, which includes Pfizer, Merck, Bayer, and Johnson & Johnson. In a study performed by Baciu, 2013,” found that healthcare companies are focusing on the most deadly diseases in third-world countries with known infectious diseases such as malaria and HIV/AIDS. Numerous help and charity programs have been implemented by drug companies lately, focusing on providing free treatment for these diseases.” The United Arab Emirates(UAE) has expressed the important of CSR in their country and the corporations are listening. The pharmaceutical industry led by GSK has bolstered their management and operations activities using Internet coordinated reports to UAE internal and external customers.

Stakeholder Theory

The GSK stakeholders are consumers, upper management, doctors subscribing the medication, external and internal holders. The consumers are impacted negatively or positively based on the access to medication that may be lifesaving or life threatening. The upper management is held accountable on how they react to any problems or issues that affect the community of United Arab Emirate. The consumer is one the most important stakeholders. There is no denying the primary religion of Islam in UAE, which the external stakeholders are critical to the success of community involvement. The UAE stakeholder theory is the definition of the organizational management and business ethics that UAE demands from corporate companies concerning ethics, morals, and values in of UAE. To advance CSR, we must root it in a broad understanding of the interrelationship between a corporation and society while at the same time anchoring it in the strategies and activities of specific companies (Butler, 2012, pg.9). The primary and secondary stakeholder both have a significant part in understanding the social responsibilities of a corporation. “A key tenet of stakeholder theory is the distinction between primary and secondary stakeholders. Primary stakeholders are those who engage in market exchange with the firm and without whose continuing participation the corporation cannot survive” (Homburg, Stierl & Bornemann, 2013)

Cultural Systems Model

The cultural system in United Arab Emirates demands that GSK employees learn the language. In UAE, the expect corporations to make an effort in learning some of the basic foundations of the language. Yes, in this cultural system language is a giant barrier. GSK learned that any corporations should be aware of the red tape because of the language barriers. The social stigma also affects the international business, but still success of marketing depends, largely, on the success in changing social attitudes or value systems. There are a number of factors that impact the success or failure of the GSK offices such as demographics, languages, population, habitat, religion, etc., which all influence the business decision in UAE. GSK has a solid model because the learned that the social environmentmust be a priority of the corporation. A new business needs to be well informed before making a successful entry in the foreign land. It is better, if the business formulated the rules in how to deal with the investors, foreign government agencies and communities. The primary barrier will always be language when communicating in a country like UAE. When the business manager is assigned to present their products, the presenters should keep in mind that it is better to avoid using many slang and metaphors. They may discover trouble in vocabulary if they tried to substitute any phrase or terms that the audience understands more.  It it’s important to slow down with talking and when people are listening, sometimes the diction and pronunciation are hard to understand. It is better for the business manager to pause into thoughts.  In the United Arab Emirates, the government demands that the corporations make contributions too socially and with the community. The management of UAE has a high level of expectations of corporations to participate and understand the needs of their immediate communities in UAE. The value of an organization is based on how UAE grades their CSR initiatives and how well they adapt to the culture of UAE. “Some key areas in which organizations make a contribution towards the community include supporting people with special needs, international aid and development, and environmental conservation programs.

Findings

It was foundthat GlaxcoSmithKline is not meeting social responsibility in the communites that are doing business. However, all the CSR corporations in the United States and globally are attempting to use the Web to deliver the message. The Web communication channel is the Internet technology but the message is send using key words that are important to communities and foreign locations like United Arab Emirates

References

Adawi, M., & Rwegasira, K. (2011). Corporate boards and voluntary implementation of best disclosure practices in emerging markets: Evidence from the UAE listed companies in the Middle East. International Journal of Disclosure & Governance, 8(3), 272-293.

Abdul LatifJameel Community Initiatives(2013).Community Involvement. Retrieved from https://www.facebook.com/ALJCI

Baciu, S. (2013).CSR in pharmaceutical giants: A hard edge. Retrieved from http://lounge.sabinabaciu.com/corporate-social-responsibility-in-pharmaceutical-giants-a- hard-edge/

Butler, P. (2012).United Arab Emirates business etiquette. Retrieved from http://www.cyborlink.com/besite/uae.htm

CSR Middle East.(2012). PepsiCo to host 2nd social responsibility youth forum. Retrieved from http://csrmiddleeast.org/profiles/blogs/pepsico-to-host-2nd-social-responsibility-youth-forum

Global Health Progress. (2012). GlaxoSmithKline: Reinvestment in LDC communities.  Retrieved from http://www.globalhealthprogress.org/programs/glaxosmithkline-reinvestment-ldc- communities

GSK.India.(2012).Corporate social responsibility. Retrieved from http://www.gsk-india.com/corporate-ruralprojects.html

Homburg, C., Stierl, M., & Bornemann, T. (2013). Corporate social responsibility in business-to-business markets: How organizational customers account for supplier corporate social responsibility engagement. Journal of Marketing, 77(6), 54-72.

Kornfeldova, M., & Myskova, R. (2012). Health and safety at work — part of corporate social responsibility. Scientific Papers of the University of Pardubice. Series D, Faculty of Economics & Administration, 18(25), 90-99.

Maltz, E., Thompson, F., & Ringold, D. (2011). Assessing and maximizing corporate social Initiatives: A strategic view of corporate social responsibility. Journal of Public Affairs 11(4), 344-352. 

Punitha, S. S., & Rasdi, R. (2013). Corporate social responsibility: Adoption of green marketing  by hotel industry. Asian Social Science, 9(17), 79-93

Shinde, P. D. (2013). Business ethics & social responsibility. Indian Streams Research Journal, 3(10), 1-4.

Raman, M., Wayne, L., & Nair, S. (2012). The impact of corporate social responsibility on consumer loyalty. Kajian Malaysia: Journal of Malaysian Studies, 30(2), 71-91.