Corporate social responsibility (CSR) is a form of business practices which involve initiatives that benefit society. According to International Organization for Standardization (2010), social responsibility refers to the organisation’s responsibility for the effects of its decision and voluntary activities on society and environment. Besides, the sustainable development including health and well-being of society is contributed through ethical behavior.
Importance of CSR
The establishment of CSR strategy is an essential component to the competition of a company, as it influences the performance of a business significantly. Corporate social responsibility helps an organization to improve their brand image and reputation, build long-term customer relationships, attract more job applicant and increase engagement of employee.
Companies tend to engage in corporate social responsibility activities that are close to the nature of business.
In this study, Google is chosen as the public listed multinational corporation in an Asian region that engages in CSR activities that are close to the nature of business. According to Neilsen (n.d.), Google successfully create a positive perception of caring worldwide. This company is widely acknowledged as being the best ‘workplace’ which treat their employees well. Besides, Google was seen as a local firm by people from different countries. In order to crack the code on the toughest problems worldwide, the company has invested in social entrepreneurs with the usage of technology. The investment in tech-based has allowed Google to expand their accessibility of clean water, prevent illegal hunting, suppressing the practice of human trafficking and cutting poverty around the world.
In 12th May 2008, an earthquake of 8.0 magnitude hit Sichuan area in China. According to China CSR Map (n.d.), Google and its staff raised an amount of 2.6million USD and provided free online advertising which costs $1.02 million USD to earthquake relief organizations. Besides, Google developed communication platform which consists of a search platform for families searching for lost relatives, an information platform for rescue workers and a global platform for fundraising. Google map also provided high-resolution satellite images of affected areas for Chinese Seismological Bureau of Surveying and Mapping in order to direct rescue efforts. In order to help a total of 18,184 elementary and high school students to resume their studies in classroom, Google has funded the construction of 15 Google Quake Relief Hope Schools in the City of Mianyang in Sichuan province. Meanwhile, Google also worked with MercyCorps, Save the Children, Doctors Without Borders and other organizations in order to provide psychological intervention, medical training for disaster relief in the next 2-3 years, which enhances the hygiene conditions of society.
Unlike corporate social responsibility that retroactively addresses issues by focusing on the past actions of a company, sustainability implies a forward trajectory which looks forward by changing the nature of the company.
Sustainability is often defined as business strategy that drives long-term corporate growth and profitability by addressing the important issues of environment, social and economic, for instance, economic efficiency (innovation, prosperity and productivity), social equity (poverty, community, health and wellness, human rights) and environmental accountability (resource use, climate change, land use, biodiversity and pollution). According to the World Council for Economic Development (WCED),“ sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.
In China, Google are helping them with youth’s new schools, by providing opportunities for university students to impact other people with their ideas.
Define &discuss, global n domestic factors and issues which drive Google to adopt CSR
Why companies engage in CSR
Studies had proven that there are several reasons leading the multinational companies to engage in corporate social responsibility. Among the theoretical reasons, economic was viewed as one of the important factors because the availability of market opportunities is determined by this principle. Besides, many supporters of CSR proclaim the direct and indirect economic benefits of engagement. According to Branco & Rodrigues (2006), the CSR proponents of the economic drivers indicate that firms chose to engage in CSR since they considered the engagement creates benefits that exceed costs. The business case of CSR proclaims that in comparison with the cost associated, the investment returns on environment and social are much larger (Kurucz, Colbert, & Wheeler, 2008).
Moreover, company can make direct economic profits through the improvement of sustainability practices in environment. For instance, a company can reduce their cost of production by investing in technology which is safer, cleaner and more efficient. According to Utting (2000), higher profits will result in an improvement in the environmental performance. As a result, government would provide eco-subsidies like renewable energy, organic farming, low carbon technologies and bio-fuels to the company (Visser, Matten, Pohl, & Tolhurst, 2007).
Factors that influence Google’s activity
Google Green
Rather than releasing annual report about scope of company’s CSR like other large corporations did, Google uses Google Green which provides information for a full range of their CSR programs and initiatives. According to Felicity Carus (2013), Google is leading the way on renewable energy by providing clean energy to power the world. Environmental sustainability and practice of green supply chain management has made Google the leader of a greener future. Besides, Google successfully established corporate culture which raises the awareness of environment. The company has been recognized as the most forward-thinking companies worldwide by implementing approaches like powering its facilities with renewable energy sources, bringing in goats to trim the grass, and hosting farmer’s markets and sustainable-cooking seminars.
Furthermore, the company is known as investors of big wind and solar energy, having signed a few contracts worth of 2.5 gigawatts worldwide. Furthermore, Google is committed to invest in renewable energy projects which worth 2.5 billion, including owning stakes in power plants. Thus, the company became one the largest non-utility investors in corporate renewable energy.
As a result, Google won the awards of Green Power Leadership 2011 and 2014, Top Rank Cool IT Leaderboard 2012 and 2013 for their hard works. According to Benabou and Tirole (2009), it can be concluded that the monetary incentives used to invest in renewable energy and reduce emissions of carbon can help to achieve objectives of CSR in Google.