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Corporate Social Responsibility

Barclays UK

Contents
Contents..................................................................................................................... 2 Introduction................................................................................................................ 4 Development and alignment of a Corporate Social Responsibility strategy...............4 Develop Corporate Social Responsibility strategy that comply with internal and external organizational objectives ..........................................................................4 Impact of a Corporate Social Responsibility strategy on internal and external organizational stakeholders ...................................................................................5 Review the Barclays strategy for alignment with a Corporate Social Responsibility strategy .................................................................................................................. 6 Social Responsibility strategy that supports internal and external organizational objectives ............................................................................................................... 7 Support the senior management and employees.................................................7 Approach and focus areas for corporate social responsibility activities...............8 Previous outcomes and current resources of corporate social responsibility.......8 Create corporate social responsibility action plans..............................................8 Develop options for Barclays................................................................................8 Implementation of corporate social responsibility strategies.....................................9 Value chain of Barclay for alignment with the Corporate Social Responsibility strategy .................................................................................................................. 9 Develop an integrated corporate social responsibility decision making structure ............................................................................................................................. 9 Prepare and implement a corporate social responsibility business plan............10 Set measurable targets and identify performance measures.............................10 Engage employees and others to whom corporate social responsibility commitments apply............................................................................................10 Design and conduct corporate social responsibility training.................................11 Establish mechanisms for addressing problematic behavior..............................11 Create internal and external communications plans.............................................11 Make commitments public.................................................................................12 Evaluation, impact and reinforcement of the Corporate Social Responsibility strategy.................................................................................................................... 12 Analyze internal reporting measurements that can evaluate the impact of the Corporate Social Responsibility strategy ..............................................................12

Examine external reporting measurements that can evaluate the impact of the Corporate Social Responsibility strategy ..............................................................12 Evaluate methods to refresh and reinforce the Corporate Social Responsibility strategy ................................................................................................................ 13 Conclusion................................................................................................................ 13 References................................................................................................................15

Introduction
Corporate social responsibility is the activity of organizations to manage the business process in the whole society. Organizations put their efforts for the customers, employees, and other stakeholders and for the whole society to create a soft image in the society. Corporate social responsibility activities of an organization put their positive impact on the customers and society as well. There are two major objectives of corporate social responsibility, first is internal objective, and second is an external objective (Chen, 2011). Internal objectives of corporate social responsibility are the satisfaction of employees, and create a positive image in the mind of the employees, shareholders, suppliers. External corporate social responsibility objectives are the satisfaction of external stakeholders like investors, customers, and society. Organizations use their resources for the betterment of the society and community. They may start many projects regarding the health, education and environment protection. Beneficiaries of these projects and activities are not only the customers of the concerns organization but also the whole society and general public (Moura-Leite and Padgett, 2001).

Development and alignment of a Corporate Social Responsibility strategy

In current scenario organizations include their corporate social responsibility activities in their strategic management decisions. Organizations allocate a handsome budget for these types of activities to create a corporate image in the society. Basically this is a part of long term planning and companies will get benefits after a long period of time.

Develop Corporate Social Responsibility strategy that comply with internal and external organizational objectives
Barclays use corporate social responsibility activities in United Kingdom. Barclays have both internal and external objectives from corporate social responsibility. Internally Barclays overcome the diversity and ethnic issues from employees. Being a multinational bank Barclays have more 140000 employees from different ethnic, gender and social classes. Further Barclays use protects the rights of women employees in United Kingdom as well as in the whole world (Barclays, 2011). Barclays have an objective to remove the diversity issues in the Barclays from

all over the world. Externally Barclays have many corporate social responsibility objectives first is to provide the best financial facilities to the individual as well as to the enterprises. Barclays expand their network from United Kingdom to the whole world to achieve this objective. Barclays put their efforts to protect the rights of individual entrepreneurs with the collaboration of United Nation. Barclays have another important corporate social responsibility projects is health and safety. Barclays is a formal member of campaign regarding HIV/Aids, and its impact on the society. Barclays stared another important corporate social responsibility project regarding the human rights (Barclays, 2011). Barclays provided financial support to the communities that are fighting for the human rights. External environment protection is also an external objective of Barclays. Barclays allocate more than 96 million in 2010 for corporate social responsibility activities (Barclays, 2011). Barclay is one of the largest banks in United Kingdom who support the corporate social responsibility activities in United Kingdom as well as in the whole world.

Impact of a Corporate Social Responsibility strategy on internal and external organizational stakeholders
Internal and external objectives of Barclays show their positive impact on the stakeholders. General public and communities observe all the activities of different organizations. When Barclay plans to invest a heavy amount for the welfare of different communities, then this is an ultimate positive affect on the stakeholders. It has different impacts on different stakeholders. Impact on employees: employees feel proud to work with those organizations who are engaged in the corporate social responsibility activities. Employees moral values may also increase through corporate social responsibility strategies. Internal personnel and employees become more happy and motivated through these types of regular activities (Dandira, 2011). Very important stakeholders for an organization are customers. Due to continuous efforts of Barclays to promote the corporate social responsibility activities in the society, soft image and good image increased in the customers mind. Good image of Barclays increased the trust and integrity in the Barclays. Business of bank depends upon the trust and faith. Barclays gradually increased the number of customers; ultimate effect of this increase is the increase in profitability. Shareholders and investors attract by the Barclays due to the good market image and profitability. Corporate social responsibility is a major cause of soft image in the mind of customers and investors as well (Hsu, 2011).

Review the Barclays strategy for alignment with a Corporate Social Responsibility strategy
Barclays used a separate report of corporate social responsibility and role of Barclays for society. Objective of this report is to show the working and contribution of Barclays for the welfare of stakeholders. Another objective of this report is to attract the customers and investors to maximize the profitability. Detail of these strategies is mentioned below: Barclays provide the financing facility to the small businesses with low profit margin and easy terms and conditions. Barclays borrow the loan to the small business with no profit and no loss basis with only 7%. Small business in United Kingdom promoted due to the small lending by the public sector and Barclays as well (Barclays, 2011). Another important strategy of Barclays is to protect the rights of the employees of Barclays. Barclays protect the rights through diversity management. It has a policy to provide the rights of employees and treat them equally. If an employee will treat in bad way due to any diversity or ethnic issue the management policy will protect the rights of this employee (Purdy and Ovanessoff, 2011). Further Barclays allocate a heavy amount to communicate the rights of the employees. Barclay introduces a good compensation system for employees and employees are also getting good reward and benefits. Social and environmental protection of the community is another strategy of Barclays. Barclays launch an environmental promotion campaign in the United Kingdom. All employees of Barclay are the formal members of this campaign (Wise and Sirohi, 2005). Basic purpose of this campaign is to create awareness among the employees and whole society. Barclays spread printed material to the public for awareness. According to the feedback general public appreciate the activity of Barclay and encourage doing more for environment. Health and safety issue is a major problem for the nation of United Kingdom. Majority of the nation is victim of health issues in United Kingdom. Barclays select a dangerous disease for prevention; this is HIV/Aids and hepatitis. Barclays protect the society from these diseases through the awareness and financial helps. Barclays start a formal awareness campaign about the HIV/Aids and its impacts on the health of a victim. After this Barclays help the different organizations in financial terms and provide them finance for their proper treatment. Barclays donate charity amounted 23 million for their treatment (Barclays, 2011). Barclays financed to the educational institutes for the development of education in United Kingdom. Barclays allocate 6.5 to promote the financial education in United Kingdom. Many

educational institutes were financed by the Barclays for their financial education. Barclays sponsor more than 7000 seminars and programs for the promotion of financial education and to solve the banking industry issues. Corporate governance of Barclays is engaged in community welfare and quality services in all over the world. Barclays introduced special accounts for disable people. Barclays spent more than 7.7 million to improve the services for disables and improvement of branches in United Kingdom and in all over the world (Barclays, 2011). Barclays achieved the right target regarding women. It has announced special accounts for older women executive and launches a package for them. Barclays have many more small and regional activities to support the people and get this credit in the term of soft image. Barclays started it corporate social responsibility activities from 2002 and planned annually. Corporate body of Barclays set new goals and strategies for coming period. Now Barclay is a biggest bank of the word that spent more in for communities and charities. Barclays itself supervise many community welfare projects on education, health and environment (Mandhachitara and Poolthong, 2011).

Social Responsibility strategy organizational objectives

that

supports

internal

and

external

After collecting the required information regarding the society and Barklays profile, corporate social responsibility strategies will develop. Corporate social responsibility strategy is a road map for future activities and corporate management decides the outcomes for future. Corporate social responsibility direction set in the strategy. How an organization will achieve the desire corporate social responsibility goals? Corporate management decides about the question and takes corrective actions. Corporate management decides the use of their resources to achieve the corporate social responsibility goals (Hohnen, 2007) . Good corporate social responsibility strategy will cover these ingredients:
Support the senior management and employees

Corporate management discuss the ideas of corporate social responsibility activities with Barclays management, so that corporate management can include the top level management in this decision and make sure the strategies implementation in this regard. Top level management enters in this decision and suggests more about the corporate social responsibility activities (Green and Peloza, 2011). Further senior managers suggest more solutions against the desire corporate social responsibility objectives. Senior managers and employees are actual workforce

that will make it successful, so their participation in decision making and actual working can make it successful.
Approach and focus areas for corporate social responsibility activities

Corporate management will decide about the areas of corporate social responsibility activities. Firstly Barclays worked on health projects, education projects and environment projects. Further in these strategies corporate management will decide about the other areas which were not covered by them in previous years. Corporate management will decides that the other victims in education fields (Sheikh and Beise-Zee, 2011). Previously Barclays support only to the financial education but now it will decides further Barclays will support to the women education in United Kingdom and other countries.
Previous outcomes and current resources of corporate social responsibility

Barclays will overview the previous outcomes of the corporate social responsibility activities and analyze this from comparison of desire goals of corporate social responsibility activities. Find the gaps in previous years, and where gaps were exists in the last year. Further plan how Barclays can remove these gaps. These are all a compulsory part of corporate social responsibility strategy for future and long term as well. Many resources require for the implementation of corporate social responsibility strategy, these resources may be in the shape of infrastructure, finance and human resources. Barclays will analyze the previous resources and then think that how Barclays can fulfill the requirement of resources (Barclays, 2011).
Create corporate social responsibility action plans

Action plan is a part of implementation process of corporate social responsibility strategies. Barclays will decide according to the country wise, regional wise and area wise. Corporate management assigns the different roles to the different managers in their areas and regions. These specific managers will responsible for whole activities in United Kingdom and the whole world. Further corporate management will give a complete road map to the concern managers, so that they can achieve the desire corporate social responsibility goals. Concern managers will make a team who will work on corporate social responsibility activities (Lantos, 2002).
Develop options for Barclays

Corporate management will decide about the plan for implementation, and divide the implementation process in different phases so that corporate manager can evaluate the performance and outcomes regarding the corporate social responsibility activities. Work on

phases is simple to do and simple to evaluate. Top level management will also make strategy regarding the areas of corporate social responsibility activities. And forecast about the future challenges regarding the plans (Lantos, 2002).

Implementation of corporate social responsibility strategies

Implementation of corporate social responsibility strategies divide into many parts. Firstly corporate management will share the strategies with top level management and senior managers. They will communicate further to their more subordinates, in the end strategic decisions about the corporate social responsibility. Employees may suggest more ideas regarding the implementation corporate social responsibility strategies. After communication corporate management will send a complete road map to implement the strategies. Being a large network of Barclays it has a large workforce who can achieve the strategies of corporate management. Implementation of corporate social responsibility strategies will be different according to the culture (Sheikh and Beise-Zee, 2011). Normally corporate social responsibility strategies should be implemented in the following way:

Value chain of Barclay for alignment with the Corporate Social Responsibility strategy
Study can develop and align the corporate social responsibility strategy through below mention headings.
Develop an integrated corporate social responsibility decision making structure

After strategic decisions top level management decentralize the process where regional level employees will also a part of planning. Area wise targets will assign to the team, this team will responsible for the whole corporate social responsibility activities in their area. Area managers will responsible to report to the top level management, and evaluate the performance regarding the corporate social responsibility targets. This is a breakdown structure of Barclays where small teams will put their efforts to achieve the corporate social responsibility goals. Employees will be more motivated and committed in corporate social responsibility activities because they will get good reputation and image from the general public (Skinner and Mersham, 2008). Nominated employees will also consider as a good team leader. Regional managers will see the areas in United Kingdom and then he will report to the top management regarding the working.

Prepare and implement a corporate social responsibility business plan

Corporate management worked about the corporate social responsibility investment and their desire results. Corporate management of Barclays worked on the future profitability from corporate social responsibility activities in all over the world. In their corporate social responsibility business they analyze the expenses with their outcomes. For example Barclays have 993000 business accounts in all over the world in 2010. Barclays have 1052500 business accounts in 2011. Barclays increased 6% business accounts in one year. Previously business accounts increase rate was 4.00% to 4.5%. But due to the corporate social responsibility activities Barclays increased its accounts opening rate (Barclays, 2011). Further it has positive impact on the profitability of Barclays. Employees are also working with full commitment and devotion with corporate social responsibility activities.
Set measurable targets and identify performance measures

To implement a successful strategic plan Barclays have a complete performance measureable mechanism. In this mechanism Barclays cover the previous results, either these are positive or negative or find the impact on the overall performance of Barclays. Barclays measure the performance six sources. These sources will clear the picture of corporate social responsibility activities implementations. Measure the team efforts of the Barclays, what are the expected outcomes of the team regarding the inputs and outputs. Measure the communication effectiveness (Fassin and Buelens, 2011). Either all employees or team members will well aware about the corporate social responsibility activities and their responsibilities in this regard. Measure the legal requirements of the corporate social responsibility activities. Have Government any objection regarding the corporate social responsibility activities. If not then Barclays can implement the corporate social responsibility strategies. Very important aspect of measure the corporate social responsibility targets, is to check the corporate documents, internal capacity and external environment analysis, processes and activities regarding the objectives of corporate social responsibility. Further identify the beneficiarys stakeholders of the Barclays and try to engage the stakeholders in their corporate social responsibility activities.
Engage employees and commitments apply others to whom corporate social responsibility

Proper training and communication with the employees and other stakeholders can create better results. When all stakeholders know about corporate social responsibility activities then they can

contribute it in better way. Barclays plans to promote their corporate social responsibility activities in general public who have no stake in Barclays. Ultimate effect of this activity is to promote the working of Barclays. As the people know about the corporate social responsibility activities and its impact on the communities then they may inspire (Quairel-Lanoizele, 2011). In this competitive period when potential customers have not feeling a very big difference regarding customer services then they prefer a brand which involved in the community services. Due to this activity Barclays earned more in last year.

Design and conduct corporate social responsibility training

To implement the corporate social responsibility include the top and middle management in decision making, when they become prepare to do something for society then top management will arrange a training session for employees. Major objective of this training will be on the specific fields where they want to work. For example Barclays plan to collaborate with an NGO to remove the HIV/Aids then what will be the role of Barclays employees (Barclays, 2011). Barclays employees may monitor the activities at real sites and get feedback from actual victims. Top management will train the employees in this regard.

Establish mechanisms for addressing problematic behavior

Proper addressing problematic areas in the field, a field survey will be conducted and analyze the different problematic areas and behavior of the people. In developing countries Barclays observe that many social and cultural issues discourage them to do more for the communities, because few landlords were not like the community welfare because they know when people get awareness then they will not like dependency. Many hurdles were created by the landlords in education awareness campaigns in under developed and developing countries. This mechanism is easy to understand the evaluation (Mandhachitara and Poolthong, 2011).

Create internal and external communications plans

After the evaluation Barclays will launch the plans to communicate internally and externally. In internal communication Barclays focus on the employees, management, internal cultural values. These efforts can promote the motto of Barclays internally. For external communication Barclays can create seminars, and programs regarding the awareness. Their communication can

show positive impacts on the profitability (Dandira, 2011). As the number of beneficiaries increase, the image of the Barclays will also increase.
Make commitments public

To reinforce the implementation process commitment of the general public will be fulfilled in timely manners. Corporate social responsibility activities will not get their required response from the society till the basic commitments will not fulfill (Powell, 2011). After the evaluation if Barclay feels that there may be some flaws in the corporate social responsibility strategy then Barclays should change the strategy for next period of time.

Evaluation, impact and reinforcement of the Corporate Social Responsibility strategy

After the implementation of corporate social responsibility strategies Barclays evaluate the strategies and find the gap between the required results and actual results (Barclays, 2011). In case of any gap Barclays reinforce the corporate social responsibility strategies according to the environment, change and gaps.

Analyze internal reporting measurements that can evaluate the impact of the Corporate Social Responsibility strategy
There will be many measurements to find out the impact of corporate social responsibility activities in a society. These measurements will be profitability, number of customers, motivation and efficiency of employees, performance of the employees, and turnover of employees, value chain effectiveness, and image of Barclays in the mind of the employees. These are all internal measurements of Barclays that can shoe the impact of corporate social responsibility strategies. Furthermore directions of above mentioned indicators shoe the effectiveness of corporate social responsibility strategies (Barclays, 2011).

Examine external reporting measurements that can evaluate the impact of the Corporate Social Responsibility strategy
Externally few measurements can show the impact of the corporate social responsibility strategy. These measurements will be the gradual increase in the number of customers, trust of

shareholders and investors, can show the effect of the corporate social responsibility strategies on the Barclays. Further increase the number of lenders and customers can increase the profitability. Logic to increase the profitability is the increase the size of customers (Powell, 2011). Few customers have many bank accounts in different banks but due to the corporate social responsibility strategies trust may enhance and they convert the wealth to Barclays. In the same way investor will also convert its investment to the Barclays because of trust and integrity. Trust factor of investors and customers will increase through the corporate social responsibility activities.

Evaluate methods to refresh and reinforce the Corporate Social Responsibility strategy
Corporate management is continuously evaluating the corporate social responsibility activities in United Kingdom and measure the impact of the corporate social responsibility strategies. In case of any flaw top management of Barclays find the root causes and tries to remove it. At the end of year corporate management of Barclays evaluate the every activity of corporate social responsibility and find the individual impact on the bank. In this way top management can easily access the efficiency and deficiency of an activity (Moura-Leite and Padgett, 2001). After the whole analysis Barclays evaluate overall effectiveness of corporate social responsibility activities. In case of any flaw corporate management can change the strategy for coming period. Further before implementing a strategy at mass level prototype implementation can make it more effective.

Conclusion
Barclays is a biggest financial institute of the United Kingdom. Barclays used corporate social responsibility activities from 2001. It has gradual improvements in profitability from last ten years. Barclays make their corporate social responsibility strategies in the field of education, health and environment. Barclays implement their corporate social responsibility strategy in two ways, first internally and then externally. Internally Barclays communicate, motivate and train the employees for successful implementation of corporate social responsibility strategies. Externally target the NGOs which are dealing with heath victim areas and education projects. Barclays provide them financial resources to them. At last stage Barclay evaluate the

performance of their corporate social responsibility activities and find the gaps. According to the results Barclays reinforce the corporate social responsibility strategies.

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