Carroll Model Of Corporate Social Responsibility Management Essay

“An idea whereby companies combine social and environmental concerns in their business operation and in their interaction with their stakeholders on a voluntary basis”. CSR has the potential to contribute to various common goals, such as social solidity, economic competitiveness and more rational use of natural resources. Today, it is important for organizations to develop and operate both Business Ethics (BE) and Corporate Social Responsibility (CSR) within the schedule of the companies.

Carroll model of Corporate Social Responsibility

In 1991 Carroll presented his first model of CSR.Carroll (1991) once again uses his original historical explanation for the relative weighting, saying:”to be sure, all these kinds of responsibilities have always existed to some extent, but it has only been in recent years that ethical and philanthropic functions have rationale, “beginning with the basic building block notion that economic performance undergirds all else”.

The model has four levels:

Economic Responsibilities The economic responsibilities are the foundations on which all other rests. All the organisations are operating to generate profit or in other words try to be profitable. The organisations are required to find the ways for generating the profit which can be morally, ethically and legally allowed and accepted.

Legal Responsibilities Law is society’s codification of right and wrong. All the firms are required to play by the rules of the game and obey what is stated in law of the host country and follow all relevant rules and regulations set.

Ethical Responsibilities Firms are obliged to do what is assumed right and just. They should act ethically towards the concerning issue surrounding the area of operation and try to avoid harm to the community and general public.

Philanthropic Responsibilities All the firms should contribute resources to the community and improve the quality of the life of the people connecting to them and act as a good corporate citizen. All the companies operating around the world are trying to maximise their profits, these companies are there to generate profit but generating profits one should be well aware that there are some responsibilities which should be fulfilled, for the companies it is important to operate in a manner consistent with maximising earnings per share. RWE npower has had a great history of generating profit in a manner which to some extent fulfils its responsibility to satisfy its shareholders and stakeholders. The companies operating in a country is required to follow the rules and regulations of the host country. RWE npower and E.ON have made clear in their codes of ethics that they are abided by the rules and regulations of the UK. It is important to add that both companies are seriously abiding by the rules and obligations of the UK and provide the products and services that meet legal requirements. RWE npower and E.ON have generally displayed that are law-abiding companies and will be abided by the law. RWE npower was the first energy company to launch an interactive debating website ” thebrighterenergydebate.com”. the npower climate cops programme helps schools across the UK to become greener and more sustainable, interactive and engaging activity events, websites and free teaching resources. It follow the government’s national framework for sustainable schools by focusing on the child, curriculum, campus and community.E.ON is aware of that importance of acting in a morally well manner and is dedicated to help the community and the society as a whole.

Sethi’s CSR Model

Sethi’s CSR Model Back in 1975, S.Prakash Sethi, a management researcher and author, developed a model articulated in three stages; from less to more gear toward stakeholders.Sethi’s model was a major advancement in corporate social responsibility thinking.

The Model has three stages:

Social Obligation The firms are socially responsible and should comply with the laws of the country and their responsibility is limited to the compliance with legal constraints.

Social Responsibility this is a prescriptive level; this level corresponds to taking a wider view of responsibility to stakeholders. At this level organisations act according to salient social norms, moving beyond just complying with the law. Companies should do more than required by the regulations and they should balance what they need from the society and what the society needs and wants from them in response.

Social Responsiveness The third stage of the Sethi’s CSR model is anticipatory and preventative. A long term strategy is developed to communicate with and be responsible to stakeholders. The latter are often key to the decision making process and, thus, take part in dialogue with these organisations-it is not just a consultation. There is special emphasis on accountability and the role of such organisations within a dynamic social system. Companies need to be socially responsible for the well-being of the community.RWE npower and E.ON have ethical policies which benefit the society in general.RWE npower has not just complied with the laws of the country but has gone beyond the law to benefit the society from its products and services. E.ON recognizes that there is a need for delivering what the society wants from all the business companies. All companies must go beyond the legal constraints to help and work for the well-being of the society. RWE npower and E.ON both have complied with rules and regulations of the greener host country and they recognize what is required of them working or operating in UK. Fair trading and competition in accordance to the regulations have been promised in the codes of ethics policy of both companies and so far no misconduct has been observed.

RWE npower is active in responding to the needs and expectations of the society. The company works on different projects to help the community and obey the rules and regulations of the UK as well as corporate with all the agencies which aim to protect the environment and benefit the society, same is the case with E.ON, which has set committees to measures the health and safety actions taken, prevention of environment, low carbon from pollution and work under the legal constraints of the UK.

Introduction

RWE Npower

RWE is the top five leading electricity and gas company. Over the last few year RWE achievement of Calortex, midlands, independent energy. The company supply the electricity more than 16 million customers. In 2000, officially the lunched of npower as well as in October 2000, national power create another two brand called Innogy plc, international power plc. With the help of all above names RWE get more customer e.g. (midlands, 2.2million, and Innogy about 7million). In 2002 the Europe’s largest company RWE become RWE npower. The 2009 financial reports of RWE show €48 billion revenue.

Market Analysis

€ Million

2009 2008

Revenue 861 714

Expenses 169 139

Receivables 708 684

Liabilities 10 13

Share trade 67.96 62.29

Dividends 16% 28%

RWE common shares trading at €64.24.

http://www.rwe.com/web/cms/mediablob/en/387728/data/110822/8/rwe/investor-relations/financial-reports/Annual-report-2009.pdf

E.ON

E.ON the second largest leading power and gas generating and distributing company in the UK. More than 17,000 people in the UK and over 93000 worldwide help our customer by providing energy. The company is working closely with its staff and customers to bring about this transformation in which Action Sustainability is playing an increasingly important part our addition services include boiler, central heating repairs and maintenance.

Market Analysis

€ Million

2009 2008

Revenue 3,280 3,488

Expenses 445 383

Liabilities 324 364

Share price 29.23 25.51

Dividends received 1,017 1,138

http://www.eon.com/en/downloads/EON_Financial_Report_2009_.pdf

we accept that the group profit figures (of €7.7bn for the first nine months of the year)

http://www.guardian.co.uk/business/2008/dec/07/eon-cost-cuts-alternative-energy

Corporate Social Responsibilities issues

Health & Safety

E.ON by nature of their work in the energy industry, our employees are to some extent inevitably exposed to potential risks and dangers, such as when working with high-voltage installations. Accidents, injuries and work related illnesses are unacceptable to E.ON. As one of the world’s largest investor-owned power and gas companies we also intend to assume a pioneering role in the areas of health and safety.RWE the nature of our business as an energy generator means health and safety is a key issue for us and we take every measure to protect everyone who works for us and who we work with. Our commitment to health and safety was recognised at the 2009 Royal Society for the Prevention of Accidents (RoSPA) Awards, where we were awarded the President’s Award for our outstanding health and safety record. E.ON the health and safety of the employees is the priority and RWE npower aims to improve it as well he get Awarded in 2009. As the health and safety at work is legislation in the country no company can dare to violate it.

http://www.hse.gov.uk/prosecutionshistory/defendant/defendant_details.asp?SF=DID&SV=1330760

http://www.hse.gov.uk/aboutus/speeches/transcripts/hackitt301109.htm

Customers

At E.ON we Support our customers to access energy and to use it efficiently by providing customer-focused products and services. RWE npower our success depends on our ability to anticipate and respond to those customer’ changing needs and deliver the highest quality services include selling our products responsibly, protecting the most vulnerable members of society and helping our customers to reduce their carbon footprint. E.ON and RWE npower wants to make profit and profit streams from the customer satisfaction in relation to the product and services delivered. Both think very seriously about how to satisfy the new customer from our variety range of product and retain the loyal.

Environment

RWE npower we are continually working to minimise the impact of our operations on the environment and to improve the management of environmental issues within the company. We are determined to minimise the environmental impact of generating energy and have a constant commitment to improving environmental management within our company as well we are renewable energy sources such as wind power. E.ON whether in generation, transportation or distribution- there’s no energy without an environmental risk and impact. That why we accept our responsibilities in protecting the environment. To significantly reduce our environmental impact we have established a systematic environmental management system across our group, as part of our CSR management. RWE npower and E.ON both companies environmental management system, which aligns with International standard (ISO 14001 & OHSAS 18001) helps to ensure it manages the company impacts effectively and responsibly. “CSR that can be adopted in Sierra Leone in order to reduce environmental and capitalist gains and promote development”.

Law & Regulation

At RWE npower we recognise our responsibility toward the communities in which we operate and we are committed to continuously improving our performance in this area. RWE npower complies with the law and regulation of the countries in which it operate. It is E.ON policy to comply with all relevant rules and regulation where it operates while encouraging innovation, competition law obligations. There is no sign of violation of law where companies are operating. Both companies are fully aware of the consequences in any case if law or regulation is violated. The companies are abided by the rules and regulations of the host countries.

Low Carbon Economy

RWE npower we focus on the reduction of our own CO2 emission, development of products and services and to increase the awareness of change in climate and to understand the need for greater energy efficiency. As we emit CO2 significantly, we are strongly committed to make sure that we will minimise this emission and to play a leading role in that in the future. At E.ON provide the frame work for moving to a low carbon society by changing the way energy is produced and used. CCS has the potential to cut CO2 emissions while maintaining an affordable and secure supply of energy. RWE npower and E.ON are working to reduce the amount of CO2. . we’re committed to bring a pacesetter in developing cleaner technologies that will helps us and society.

Renewable Energy 

E.ON we are one of the leading green developers, owners and operators of wind farms in the UK today. We’ve been involved in wind energy project since 1992 and now have 21 wind farms. We’re also planning to significantly expand both our on shore and off shore generation. As we generation energy from renewable sources we burn biomass material mixed with coal in two of our power stations, these schemes bring income, local employment opportunities, potential tourism and educational interest to the local communities. RWE npower renewable is one of the UK leading renewable energy companies. The UK has a huge amount of renewable resources, including the best wind resources in Europe. It currently operates 21 onshore wind farms and 1 offshore wind farms, with a generation capacity of 423MW. RWE npower renewable also run 17 hydroelectric power projects, which have the ability to generate 65MW.

Recommendations reflection on learning

Both companies are recommended to have a long term relationships with the stakeholders as they shape and constitute the main part of the company’s operations and revenue generation.

E.ON needs to focus more on philanthropy, as it is operating well in the market place and is expected more from it. Both companies should form committees which can measure the performance of the mentioned companies with regards to the well-being of community and the companies must recognise to what extent they are accountable to the society and the companies role within a dynamic social system. Many manufacturing firms, by their nature cause air and water pollution, low carbon, greener, they contribute to climate changes, such firms therefore, are more likely to be subject to criticism than a life insurance company which emits no oblivious pollution. So naturally these companies (RWE npower and E.ON) pollute the air, and they have taken considerable actions to minimize polluting the environment but more actions should be taken and cooperating with all agencies that can help them in reducing the risk of polluting the environment should be done. RWE npower and E.ON are fully abided by the rules and regulations of the host countries and no violation of the law should take place, the companies need to maintain their status-co in order to be prestigious and profitable strong in the market place.

Reflection on Learning

Kolb (1984) provides one of the most useful (but contestable) descriptive models available of the adult learning process, inspired by the work of Kurt Lewin. This suggests that there are four stages in learning which follow from each other. Although others were working on experiential learning before Kolb, Kolb’s experiential learning cycle (Kolb, 1984) created an explicit model that is cited widely in texts in the fields of education, professional development, training and elsewhere. Kolb also uses his model to imply that learners may vary in their abilities to function in the different sectors of cycle. Stages of the learning cycle

1. Concrete experience

2. Reflective observation

3. Abstract conceptualisation

4. Active experimentation

Let us take experiential learners as an illustration, by directly involving themselves in new experiences they enter the first phase of the cycle, designated concrete experiences, reflective observation, abstract conceptualisation, and active experimentation. Without going deep in a subject or searching for information, it is relatively difficult for one to have a broader knowledge and experience of the field in which he/she is involved. Looking to the CSR module, it’s easy, interesting, but quite informative. In our tutorials we have learnt how companies are obliged to the laws and how they tackle CSR issues. We are taught in quite different way about the CSR, different tactics were used to enhance our learning capabilities by using different education media such as internet, DVDs, newspaper, magazines and televisions. We were ask to present different topics about CSR by our tutor which helped us to have interest in searching for CSR, our assignment made us search about CSR as a whole, we were show documentaries in classroom which helped us learn how the companies violate the law of the host countries. As we have entered in the field of business, we have watched or observed how the companies take CSR as important part of their business policy. We learned how greater scholars have done their research to expose the need for CSR. Discussions and debates in the class increased our understanding of the need for CSR and its importance and benefits, which are provided to the society in general. Discussions, were very vital to our learning, each and everyone participated and shared new information. We had the opportunity to use the lab several times in order to do the research about our CSR assignment, which was extremely beneficial and add to our knowledge about CSR. The resources, teaching and learning materials helped us understand the basics of CSR. All resources were properly delivering the lectures by the tutor. Flexible environment was provided and we were free to debate on the corporate social responsibility issues surrounding us and the business companies. Interesting learning materials helped us and motivated us to learn in a very simple and general manner. Concrete experience Active experimentation Reflective observation Abstract concept