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Corporate Social Responsibility, the Triple Bottom Line, Standardization and Brand Management in Houston, Texas

Written by T. Dixon

Paper category

Master Thesis

Subject

Business Administration>General

Year

2014

Abstract

Master Thesis: Corporate Social Responsibility (CSR) is a derivative of sustainable development. It involves corporate behavior and how to use environmental management strategies as a tool to enhance the company's image and have a cumulative impact on its environment and profits. The Triple Bottom Line (TBL) believes that companies can measure their success from three perspectives: people, planet, and profit. (Elkington, 1998) Their performance in each category represents their commitment to stakeholders, natural environment, and economic profit. It shows that the relationship between categories is not necessarily a trade-off that must be compromised to achieve another, but a balance must be achieved to maximize the potential benefits of each category. Since improving efficiency and innovation can bring advantages, thereby creating competitive advantages, which in turn brings its own profitability without harming the environment, a company's attention to social issues can win the respect of the community and the loyalty of consumers for its brand. When a company proactively resolves social and environmental issues in communities within its stakeholders, and when it implements this approach to have a positive cumulative impact on these communities, it can be considered socially responsible. This expanding range of stakeholders can be said to include employees and managers, customers, suppliers, creditors, shareholders, the government, and society as a whole. In doing so, many companies choose to go further. In many cases, the law does not require companies to act responsibly. Regulations are generally considered inadequate, outdated, and lack of enforcement. An alternative to regulatory compliance is standardization. By voluntarily implementing standards in its operations, the company is able to align with the international community in terms of its commitment to care for the environment and to act prudently. This sends a message to ethical consumers; a valuable message. In general, CSR is sometimes considered charitable rather than mandatory. However, a deterrent factor is that standardization is a voluntary work. Since the law does not require companies to use and implement standards in their operations, many companies will not. TBL may prove to the company on preferential terms that social and environmental responsibilities are relevant factors in its financial statements, and including them can be beneficial to the company. This idea first appeared in the 1990s, when John Elkington introduced the term in his book "Fork Cannibal: The Triple Bottom Line of Business in the 21st Century" (1998). 1.2 The Triple Bottom Line Argument When discussing the environment, not all questions or ideas are welcome. Different stakeholders have different views, and their views and actions are based on these views. This extends to their views on the correct course of action. Although TBL is embraced by its supporters as a means of evaluating and improving social and environmental sustainability methods within an organization, its critics also question its effectiveness and practicality. One criticism is that TBL is inherently misleading because it cannot convey its literal meaning (Norman and MacDonald 2004). A further argument is that social and environmental issues cannot be quantified in the same way as the financial data that make up the net profit/loss. a company. These issues are qualitative in nature, and it is impossible to find standard indicators to quantify them in the audited performance report. It is also ignored as a tempting rhetoric. It does not provide specific requirements for the organization, but provides a shelter for the company, hiding behind it, without real commitment to social and environmental changes (Norman and MacDonald, 2004 year). However, in response, Pava believes that TBL is used metaphorically to challenge traditional thinking that corporate performance can be evaluated or summarized by any single indicator, such as net income; and it reminds people that “corporate performance is multidimensional” (Pava , 2007, p.108). Tullberg (2012) praised the ambition of the model, but believed that ecological footprint calculations and other reporting indicators are positive indicators of the problem that can solve the aggregate measurement being used. The model does need to be further improved, because academic disinterest is considered a major cause of its current underdevelopment (Tullberg, 2012). All the evaluators mentioned seem to agree that the main limitation of TBL is the lack of academic exploration to supplement the company's growing interest in the subject area. 1.3 Overview of Texas Texas is the second largest state in the United States, with an area of ​​approximately 261,231 square miles. According to data from the US Census Bureau, the estimated population of Texas in 2013 was 26,448,193, an increase of 5.2% from the 2010 figure (US Department of Commerce, 2013). Undoubtedly, due in part to its size, the state has a large and diverse industry, as well as a large number of natural resources. As described by the Governor’s Office of Economic Development and Tourism, in the Texas Economic Survey, the growth of industry trends is divided into the following six clusters: x advanced technology and manufacturing x aerospace. Read Less