The Role of CSR within the Context of Profit

Besides, the idea of corporate social responsibility (CSR) can be explained in several ways but we normally have two main, which are used to describe it. Firstly, one is known as the classical view, which explains that the organization is supposed to meet numerous economic and permitted errands; hence, its main goal is to make the most of the incomes of shareholders. It is directly linked to social responsibilities. There is a cost of an organization performing another task where the expense is always passed to the clients by increasing the price of products or the services offered and the shareholders by minimizing the income. The second is known as the social-economic view, which explains that companies must look behold just making profits in a way to reserve the location and improve the well-being of the community.

The negativity increased back in 1992 when Jeff Ballinger branded “Nike, The Free Trade Heel: Nike’s Profits Jump on the Backs of Asian Workers,” (Wheelen & Hunger 56-57). It was revealed that in Indonesia that the salaries were fourteen cents in one hour and also it had subcontracted the employees in order to avoid lawful errands for salaries and working environments. This report was published at the best time this company for five years that is between 1988 up to 1993 where the revenues had tripled. Due to these scandals, its share fell down vividly and sales lagged. The scandal by work activists, schools, and customers controlled to crippling reputational injury and it enforced the CEO to acknowledge the truth that they were paying low wages.

They found the only solution was to come up with corporate social responsibility model that focused on risk organization, charity agreement that utilized Nike’s concentration on an invention to evolve into a more maintainable corporate, through which public, the world, and incomes were put into stability for future achievement (Wheelen & Hunger 56-57). Nike is a business for making a profit so the main goals of its planning are how to maximize profit. Public participation in profit companies is not an objective since their main goal is more profit. So, there is always a question of productivity in a company in order to maximize the profit. This company showed no intention of changing hence; it was forced to rectify its wrong business conduct even after several demos and strikes by employees and the activists.

Nike is working and has implemented it. Investors with an international sustainability desire trying to produce successful chances for companies to generate more revenue achieve their CSR and offer an encouraging broadcasting publicizing image for the company (Binachi 115-136). Apparently, Nike has already achieved success this is because it has looked on the effect of the environment leading to a reduction of waste materials on the manufacturing products this is because they get the outputs and uses them as inputs of another product. This leads to increase on the profit because then there will be no cost for the recycled waste. According to Peng, he describes three sets of international drivers associated with profitability in this 21st century. It only managed to run for one year then it could not sustain its demands.

This case of PepsiCo, which is different from that of Nike, enables us to have different views on the implementation of CSR. The PepsiCo case study enables us to understand the different fortunes of a particular business. As we can see, PepsiCo did not have the ability to run the charity work and that is why it could manage. As said earlier, any additional task means that there is an additional expense that can be passed to either the customers or decrease the revenue of the shareholder. Besides, Nike has developed different strategies by the use of CSR, which helps it to succeed in the market. Since the time it faced several challenges, it came up with CSR, which had some strategies to help it and also prevent future challenges.

The CSR concentrated on the following areas. The material used: this included the option to decide either to use used or unused products. They could get the output them make it be an input of another product. Primarily, every supplier at Nike has to meet the high standard, which has been set by the company. Evaluation is always done by the company to check the performance of each supplier whether it meets the set standards of the company. This helps the suppliers to keep their work to high standards, which can match those of Nike. It helps Nike to meet their goal of delivering the best products and also minimize more waste products this because it has quality materials. The evaluation of each is supplier is not only based on delivering good materials but also time management is considered.

It has invested a lot in talent by either inspiring or helping people in different perspectives. Improving the welfare of the employees is an effort Nike has worked on, remember employees can market or tarnish the image of the company as well as the customer, who according to Nike executive are given the first priority. Likewise, it has a growing scale and availability of new raw materials that include the distribution of intellectual property and allowing reprocessing of resources. It was so keen on the purchase of new materials so that they can get the best and high-quality product in order to give the best quality to the user. Further, it developed a five-level model, which is the latest CSR model for Nike that considers all the shareholders and environment as a share of its corporate.

Looking at the issue of Nike Company, which was running its operation very poorly to an extent of employees striking and its image tarnished to bad. It had a hard time running its operations where the top management was not willing to change their policy. They requested an audit to be done and give a report as well as the recommendations that would help the company to improve and maximize its profit. After the report, the executive would not implement it fully. They implemented it partially but it never worked so they decided to implement it fully. "Biodiversity issues for the forthcoming tropical Mediterranean Sea. " Hydrobiologia 580. D. Robin, E. ReidenbachSocial responsibility, ethics, and marketing strategy: Closing the gap between concept and application Journal of Marketing, 5 (1987), pp.