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on company Performance:
1. Introduction
Corporate Social Responsibility as a concept entail the practice whereby corporate
entities voluntarily integrate both social and environment in their business philosophy and
operations. A business ventures is primarily established to create value by introduce
products and services which society demands. The present-day conception of corporate
social responsibility imply that companies voluntarily incorporate social concerns in their
operations and communication with their stakeholders. The concept of Corporate Social
Responsibility is one of ethical issues surrounding corporate decision making and
behavior, therefore if a firm should undertake assured activities or refrain from doing so
because they are beneficial or hurtful to society is a essential question. Social issues
deserve moral concern of their own and should lead managers to consider the social
impacts of corporate activities in decision making.
Today, managers of Multinational Companies(MNCs) have found a need that the society
in which they operate should be provided for because their intermediate and macro have a
through impact on the achievement of the corporate objectives and mission statement.
The principle of all Profit-making organizations, and even the ijcrb.com
In the past, Corporate Social Responsibility has taken the form of
codes of conduct written by Public Relations departments, without
2. Literature Review
2.1 Corporate social responsibility towards employees
The same opportunities for rewards and development should be provided to every
employee for firms to be socially responsible. Responsible employment practices with
well-trained, and motivated employees, who are sufficiently rewarded sharing in the
Companys successes should be instituted. A company that ignores this responsibility
might likely face a risk of losing productive, highly motivated employees, a case in point
being Del Monte A company should ensure that the work environment is safe, both
physically and socially and should aim to be the employer of choice in all areas of
operation In Jordan, a number of laws are in place to help guide companies in aspects of
employees and the workplace; examples take in the Employment Act (2010), and the
Occupational Health and Safety Act (2006). For employee satisfaction in the workplace,
some scholars have adopted Maslows theory and used his notion of need fulfillment to
measure this factor (Naseem, Sadia & Malik, 2011). Both employee satisfaction and
dissatisfaction are affected by the job environment and by how much job satisfaction is
possible within it (Al-Hussami, 2008). Perceived fairness is one key factor affecting
employee satisfaction and improved performance (Parvin & Kabir, 2011). Nonfinancial
measures also have a significant direct effect on procedural fairness (Sharon, L. C. et. al.,
2012). Job satisfaction is a complex factor surrounding different facets (Alafi et al., 2013)
and subject to factors like wages or salary, working environment, management style and
friendly staff relationships (Lane, Esser, Holte & McCusker, 2010). As a result, the
success of an organization ijcrb.com non-profit making organizations, is to increase
profit and in turn decrease cost, through best employment of available resources to
achieve the best results they are able of. Profitability is an significant factor can be
considerably determined and affected, together with performance and profit. The
significance of studies of employee is significant for human relations and management
concerning both people in companies and for the scholars seeking and analyzing
relationships as well as directors and shareholders (Greasley, Bryman, Dainty, Price, &
King, 2005). As well impacts positively on both the perception of job satisfaction and
actual employee satisfaction at work. How a supervisor acts as a role model by personal
demonstration, Ellickson and Logsdon (2002) who defined the extent employees like
their work as job satisfaction and later Alafi et al. (2013) agreed with this definition: his
addition was to like as workers emotional response towards the different elements of
the work.
Research conducted by (Joshi et al.,2007) they found that there is strongly relationship
between Profit Making and Social Responsibility . Profit making is the essential reason
for an enterprise to extend and grow while social responsibility is the basic duty of the
"state" that must focus upon the background of its stakeholders with social justice. They
study concentrated that there must be continuous efforts to reduce this economic
difference amongst the country; however, cases could be different. Hence, strategic
innovation emerges as an imperative tool towards a globally competitive existence and
performance. (Lai et al., 2010) indicated the effect of corporate social responsibility and
the firms reputation on its brand equity in business-to-business markets from the
employees viewpoints on a sample of industrial purchasers in Taiwans. The results
supported their hypotheses that corporate social responsibility and corporate reputation
have positive effects on industrial brand equity and brand performance.. The researcher
indicated that majority of the companies believe they should pay attention to corporate
social responsibility however, the main barrier to adopt corporate social responsibility
experienced cost and lack of human resources. The study stated a moderate positive
relationship between CSR and performance. (Cyrus Iraya Mwangi ,2013) stated that the
relationship between corporate social responsibility (CSR) practice and firm performance
with some studies showing a positive relationship. It is with this background that this
study sought to establish the relationship between corporate social responsibility practice
and performance of firms listed in the manufacturing, construction and related sector of
the Nairobi Securities Exchange. Although the study was intended to be a census survey,
non-availability of complete data for some of the companies resulted in only 10 out of the
14 companies in the sector being studied. (Georgeta VINTIL, 2013) mentioned that the
notion of corporate social responsibility is established on the equal dependence between a
organization and society, as well as the indicators that influence this relationship. This
study explores whether profitability and organization size have a possible influence on
levels of corporate social responsibility according the annual dates of Romanian
organizations, using statistical correlations. The research found that organization size and
organization profitability have an influence toward the corporate social responsibility.
Selvi et al., (2010) explored corporate social responsibility impact on company reputation
in Turkey by comparing the relationship between corporate social responsibility and
reputation measures before and after the financial crisis. provided a framework for
analyzing CSR. The model has two important ingredient CSR is, at least in part, a profit
motivated decision; different CSR activities are aimed at different audiences. The study
examine the implications of their framework using a visible CSR index that captures
consumer oriented CSR. Research found that CSR is more prevalent in advertising
intensive (consumer oriented) industries, and the effect of CSR on profits is stronger in
competitive industries, especially when few other firms undertake such actions,
suggesting that CSR may be used as a means of differentiation in otherwise competitive
environment
3. Objective of Study
The focus in earlier research had been on finding the results about the relationship
between the CSR and Perform different world wide The factor of finding further
information about CSR and Performance will make a good contributions to the body of
the Literature . Consequently this Research aims to explore and identify strategies that
affect the relationship between CSR and performance
Research Model CSR towards employees Working Place
Salary
Employees relation
Objectives
The Aviation sector was in its boom stage but there have been
sporadic tremors which has upset the whole dynamics of employee
welfare. Time and again, leading airlines like Jet Airways and Kingfisher
airlines have resorted to retrenchment and downsizing of their staff.
This has been done in the pretext of controlling costs and trying to stay
put in the market. But is this justified when there is so much talk about
discharging Corporate Social Responsibility.
My objective of bringing out this case analysis is to understand
the functioning of two of Indias leading service organizations when
it comes to employee welfare. Are these companies sensitive to the
problems and needs of their employees? Do they really think before
issuing them a pink slip and asking them to leave the organization?
Who is to be blamed? Is it poor Human resource planning or economic
slowdown? The bottom line is that employees are the ones who become
scapegoats in the name of cost cutting, trimming or streamlining. All
fancy terms which only send one message out Organizations dont
really care about their employees; they only are interested in staying
profitable. This has been proved right by two of the leading airlines of
this decade Jet Airways and Kingfisher Airlines.
Historical Perspective
If we look at the historical perspective, prior to the First Industrial
Revolution, the industries were owned and managed by one or more
people and the employers maintained close relations with their workers.
This healthy worker employer relation was demolished by the onset
of Capitalism. The Industrial Revolution (1750 1850) was a period
of change and transformation from hand made products to machine
made products. Production started taking place on a large scale, which
resulted in rise in pollution levels, working conditions deteriorated and
there was a rise in the employment of women and children.
During this phase, Socialist Robert Owens name is noteworthy.
He tried to improve the lives of his employees, by increasing their pay
and providing them with better working conditions. He was also the
first person to say that children below 11 years of age would not be
allowed to work in his factory. Due to his humanistic approach, the title
of Father of Personnel Management is bestowed upon him. In 1835,
another industrialist Andrew Ure stressed the importance of human
factor and provided his employees with benefits like Tea, medical
treatment and sickness payments. In Indian context, it was J.N Tata who
in the year 1886 instituted a Pension fund for his workers and in 1895,
he introduced accident compensation. These were the small beginnings
in the direction of being socially responsible towards employees.
The Human Relations Movement gave impetus to the employee centric
approach of management. The Great Depression in 1929 in America
and the Labour movement contributed in developing good employer
employee relations. It believed in treating employees as human beings
and not machines. Employees feelings, sentiments, ambitions were duly
recognized and they were involved in the decision making process.
The Behavioral Science Approach also stressed on the importance of
employees in the success of an organization.
A legal contract of employment governs the relationship between
the organization and the employee. The relationship is considered
to be important by society. The reason is that employees contribute
towards the growth of an organization and this in turn results in the
improvement of society. The employment contract makes the employer
responsible towards their employees. In return for their work and effort,
employees expect wages, benefits and security. It is the responsibility of
every organization to stand up to these expectations of their employees.
The scope of these responsibilities is determined by the nature
of employment. Usually the permanent employees enjoy trust and
job security, whereas the temporary and probationary employees are
the ones whose interests are sacrificed whenever there is a crisis in
an organization. To foster a sense of belonging among all employees
an organization should maintain a healthy work environment where
following responsibilities are adhered to towards all employees.
33 To provide adequate compensation based on experience and
standard of living conditions
Methodology
In order to understand the contributions of the two leading
airlines towards the discharge of their Corporate Social Responsibility,
Newspaper headlines and TV bites flashed Vijay Mallya posing with air
hostesses atop the wings of the planes that would rule the skies. Mallya
was called a game-changer, Indias version of Richard Branson. But to
anyone willing to forego the momentary aura, this story had flaws even
from its early days. Who were the sufferers finally? It was people, those
who were supposedly the strength of the airline paid a heavy price.
An airline that was known for the glam quotient of its employees
has changed completely. The women employees of KFA who once used
to feel proud associating themselves with the airline are now crying
Shame Mallya. Yes just a day before Womens Day the KFA women
employees have written a stinging open letter to Mallya questioning the
very integrity of the organization. The explosive letter not just charges
Mallya of duping the employees, breaking their trust but also blame
him for what the employees say commodification of women.
The government is a silent spectator even though TDS violation
has taken place. If the judiciary does not intervene in favor of
Kingfisher employees, it is a very sad reflection of denial of justice.
The harried employees of defunct Kingfisher Airline (KFA) approached
the office of Regional Labour Commissioner (RLC) in New Delhi, on
March 2, 2014, seeking its intervention over non-payment of salary
dues. But the alarming fact is that none of the executives from KFA
management came forward to attend the meeting called by RLC.
This is the story of passion gone wrong and all the proponents of
Passion as the driver of success may do well to take a lesson out of this.
We are taught that persistence is essential to success, but here is a story
where it led to a meltdown on a grand scale. In a recent move, United
Bank of India has declared Dr. Vijay Mallaya as a Wilful Defaulter, but
what happens to those employees who still await their pending dues.
Shouldnt there be an intervention to protect the rights of the hundreds
of employees who gave their sweat and blood to build the airline. This
indicates complete neglect towards the rights of employees, the right to
receive a fair remuneration and earn a living [4].
Case 2: Jet airways
Recipient of several business and leadership awards, Naresh Goyal
which is the most important festival in whole of India, such a step should
have been delayed some more. This really showed the management in
a bad light. This is a month when people give bonus and gifts to its
employees and what a gift Jet Airways gave. The management should
have made a thorough ground work before venturing into the process
of retrenching 1900 employees [5].
and have long term interest in the organization. Concepts like ESOP
and Employee Pension schemes play an important role in creating an
eternal bond between the employees and the organization. Employees
are brand ambassadors of the organization and hence it is a wise decision
for the top management to invest in employee welfare activities.
References
1. Business Ethics and Corporate Governance
2. http://www.indianaviationnews.net/
3. Realty comes back to bite the Pawar family (2012) Tehelka Magazine, New
Delhi.
4. http://en.wikipedia.org/wiki/Kingfisher_Airlines
5. http://en.wikipedia.org/wiki/Jet_Airways