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Assignment states that organisations implementing CSR model are benefited many aspects such as employee regulations

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. Introduction

Implementation of sustainability development in an organisation helps in development of goals with maintaining stability in the natural system. However, effective management of performance is improved along with improving productivity of an organisation. In order to improve performance, an organisation needs to inculcate development in various areas such as social, economical and environmental. Moreover, in context to modern world, it can be observed that growing industries and pollution has led to create an imbalance in the natural system. As a house building organisation, Barratt development plc faces certain issues based on sustainability. In this context, this research paper focuses on sustainability development and corporate social responsibility management for Barratt development plc. In addition, ways proper sustainability management helps in impacting the employee satisfaction along with improvement of the performance as discussed in this research paper.

Background of the company: Barratt development plc is UK's one of the largest residential property development company. The company has an operating network over 30 divisions. From studies, it can be observed that the company has overall revenue of £ 4235.2 million since 2016. The company is found to have a strong growth in its profit 20.7% in the year 2016- 17. In addition, Barratt's net income since 2016 is found to be £550.3 million. From the analysis of sustainability report of Barratt development plc, the company has reduced its annual waste consumption by 15,100 tonnes (Barrattdevelopments.co.uk, 2017).

2. Responsible management and CSR

Implementation of Corporate Social Responsibility (CSR) model in business helps organisation to self regulate its mechanism monitoring and insurance the activities with ethical standards, laws and international norms. As mentioned by Kazamia and Smith (2014), organisations implementing CSR model are benefited many aspects such as employee regulations, environmental regulations and economy. From studies, it can be observed that implementing CSR strategies helps organisation to make a positive impact on stakeholders and environment. This includes communities, consumers, investors, employees and others.

 

Figure 1: Sustainable development factors

(Source: Created by Author)

In context to Barratt development plc, implementation of CSR Strategies and responsible management can help organisation to develop Strategies for managing its employees, communities, consumers along with maintaining environment. In context to the opinion of Lim and Greenwood (2017), implementation of CSR strategies in an organisation helps in understanding of the importance of social responsibilities towards its customers. However, this is evident from studies that CSR exhibits certain benefits to the company. These are as follows:

Environmental CSR

Implementation of environmental CSR head eco issues related to climate change. In context to Barratt development plc, environmental CSR can help in analysing the issues based on environment. 

Community based CSR

Community based CSR helps in developing issues related to community. However, companies can use this CSR in improving the work based on community. In addition, CSR helps in the quality of life of people. 

HR based CSR

Development in the HR management helps organisation to develop strategies based on internal managing of the organisation. It is important for organisation to develop strategies based on employee satisfaction. Hence, implementing HR best CSR in company helps in developing employee satisfaction along with improving the efficacy of business. 

Companies are benefited in various ways by implementing CSR in business practices. These are as follows:

• Employee satisfaction 

Employee satisfaction is one of the major aspects for business. However, it can be observed that most of the business failures arise due to employee’s dissatisfaction. As mentioned by Hoi et al. (2013), employee with positive attitude towards a company likely to stay loyal to the company. However, employee turnover can result in risk of market failure. Moreover, this results in reduction in overall profitability of the organisation. 

• Customer satisfaction

From various studies, it can be observed that CSR implementation improves customer’s attitude towards a company. In context to the opinion of Tai and Chuang (2014), strong CSR management leads to improve customer satisfaction, leading to maximizing profit. In addition, implementing corporate social responsibility helps in effective sustainable growth for most of the companies. Moreover implementing CSR provides competitive advantages to the companies. From various analyses it can be observed that 88% of the consumers tend to buy product from a company engaged in improving society.

• Efficient cost management

From observations it has been identified that CSR programs leads to reduction in costs. According to Korschun et al. (2014), implementing CSR programs are cost effective and do not requires any effective measure or implementation of costly programs. In context to the opinion of Vilela et al. (2014), CSR programs lead to reduce cost by managing of liabilities and potential risk in an effective manner. Moreover, by implementing CSR programmes, organisation can implement energy savings programmes. As mentioned by Korschun et al. (2014), investment on traditional advertisements also gets reduced due to implementation of effective CSR strategies. 

• Development of business opportunities

From various analysis, it can be observed that effective CSR implementation in business provides more business opportunities. In context to the opinion of Tai and Chuang (2014), effective implementation of CSR deals with continuous interaction with business parties, leading to develop more business opportunities.

• Setting of long term future goals for business

For developing long-term business strategies, CSR can help in achieving results in effective business continuity for future. According to Cai et al. (2014), CSR leads to better brand recognition. This, in turn, results in positive business reputation. Moreover, this leads to organisational growth in an effective way, leading to goals for long term.

Advantages of implementing CSR in an organisation

• Employee satisfaction

• Customer satisfaction

• Efficient cost management

• Development of business opportunities

• Setting of long term future goals for business

Table 1: Advantages of implementing CSR in an organisation

(Source: Created by author)

Barratt development plc, as a construction industry, needs to implement CSR Strategies for sustainable development and waste management (Barrattdevelopments.co.uk, 2017). According to Kazamia and Smith (2014), it can be observed that advancement of technologies and house buildings has lead to production of waste since past 10 years. However, it is necessary to develop certain strategies to reduce the waste along with recycling of resources. Developing effective CSR Strategies for Barratt development plc, can help organisation to reduce its annual waste consumption along with of waste on sites. As mentioned by Lim and Greenwood (2017), effective waste management and reduction can lead to development in environment. By designing effective CSR, Barratt can reduce its overall waste along with improving the performance metrics of the company. However, it can be observed that development in these areas helps in enhancing the working condition and increase productivity for an organisation (Government.nl, 2017).

CSR critics 

It can be observed that most of the business process in modern context implements corporate social responsibility (CSR), in order to involve with daily business practices. However, it can be observed that the idea of corporate social responsibility (CSR) is not shared or known to most of the businesses. Hence, business to business approach lacks behind in CSR critics. 

3. Values underpinned by Ethics

In order to perform business in right way maintaining Business ethics is an important aspect for improvement. From various analyses, it can be observed that business Ethics plays a vital role in understanding the difference between right and wrong in workplace. According to Tai and Chuang (2014), maintaining human rights and responsibilities followed by benefiting the society in a fair manner leads to proper development of Business Ethics. In context to Barratt development plc, it can be observed that the company faces issues based on control of construction operations. From analysis it can be observed that keeping people safe in workplace along with operating efficiently are the major issues found in Construction Company. Moreover, it can be observed that attracting, inspiring and investing in people is a major aspect for business that requires attention (Government.nl, 2017). Not only is this, but development in the sustainable and responsible sourcing the major issues by business and required attention for building sustainable values. 

In order to maintain transparency in business process along with maintaining efficiency in the working process, understanding of the ethical theories is important. As mentioned by Cai et al. (2014), understanding of ethical business theories helps business to think clearly about the problems and issues. It also leads to make well informed decisions for the authorities. From studies it can be observed that ethics theories consist of self interest, duty to people or principles, consequence and virtue. Implementation of these four theories in business helps to develop business strategies efficiently by understanding the problems (Lim and Greenwood, 2017). 

Types of ethical theories

• Self-interest, enlightened

• Duty towards principles or people

• Consequences and compassion

• Vice and virtue

Table 2: Types of ethical theories

(Source: Created by author)

Self- interest, enlightened 

From various analyses, it can be observed that most of the people think about making business decisions by solely self interest process. As mentioned by Hoi et al. (2013), making decisions by self-interest helps to develop laws for maintaining Business Ethics. However, this theory of Business Ethics can be used in order to justify business decisions. In addition, it can be observed that enlightened self interest is based on ideas that a person generate. This type of Ideas can lead to same decisions in some of the circumstances (Lim and Greenwood, 2017). In context to Barratt development plc, self interest in light and decision making process can help organisation to develop effective ideas based on sustainable development, reducing the waste effectively. Moreover, implementing this ethical theory can help in sustainability program by reducing expenses. In order to contribute to the society, implementation of this theory is justified (Barrattdevelopments.co.uk, 2017).

Duty to principles or people

From studies, it has been identified that most of the business theorists accepts that real market are subjected to restrictions and regulations. In this context, it is evident that maintaining the legal duties in order to act for financial interest deals with maintaining ethical theories. Moreover, it is based on operations related to environment, employees and stakeholders as well. In context to the opinion of Epstein and Buhovac (2014), maintaining ethical theories this is help business to develop efficiently. However it can be observed that businesses implementing ethical theories do not faces issues based on business Ethics. As a Construction company, it is necessary for Barratt development plc to inculcate proper legal activities for effective management and development. In order to maintain sustainable development and reduce ethical duties based on environment is an important aspect for business to maintain.

Consequences and compassion

Ethical theories based on moral principles helps in developing business financially. According to McKinnon et al. (2015), none of the business based solely on compassion can succeed financially. However, in order to succeed financially, effective ethical decision making is required. As mentioned by Leipziger (2017), Employees working with compassion for a business needs to be given a second chance development. This does not make the decision of financial failure. However, in context to the opinion of Epstein and Buhovac (2014), another way of seeking solutions to the ethical problems is to deal with potential consequences of courses of action. It is evident from the analysis that business practices which create environmental problems can bring benefit for stakeholders with serious long term consequences. Hence, effective measures need to be taken in order to reduce the problems based on environmental consequences (Barrattdevelopments.co.uk, 2017).

Vice and virtue

From studies, it can be observed that virtue ethical theory in business helps in development of inculcating certain virtues based on courage and honesty. As mentioned by Leipziger (2017), implementation of virtue theory in business decision making leads to avoid vices such as cowardice, dishonesty and other such factors. However, this theory is considered to be the best for examining the major situations based on such issues. In context to the opinion of Vilela et al. (2014), virtue theory in business process provides planned action courses before implementation of the business process. Barratt development plc can implement this theory in order to deal with issues based on virtue ethics (Barrattdevelopments.co.uk, 2017).  

4. Exploring the issues

From observations it has been identified that certain issues exist in sustainable development. However, can be identified that sustainability issues that matters the most for a business deals with keeping people safe, investing in proper development and innovation, operating efficiency and inspiring people. Keeping people safe in construction industry is an important aspect our business. As mentioned by Leipziger (2017), it is important to maintain safest possible working environment for the employees working in an organisation. Furthermore, it can be pointed out that operating in an efficient manner helps business in reducing construction wastes. It can be emphasized that waste produced by an industry impacts the environment to a great extent. Hence, based on recycling can be implemented in order to tackle the issue of waste management. Moreover, it can be observed that actions based on Sustainable sourcing needs to be focused by construction industries in order to develop effectively. In order to improve the efficacy of business process supporting local businesses, economy and supply chain collaboration can be implemented for improvement. In reference to the opinion of Hoi et al. (2013), companies striving to meet the environmental commitments at every stage of supply chain process lead to reduce the environmental hazards production to great extent. 

From studies, it can be observed that innovating and improving efficiency by maintaining sustainable values is an important aspect for business. As mentioned by Buhovac (2014), building of more construction requires innovative approaches. However, it is necessary for business to maintain safe working environment in contrast to produce quality products for its customers. One of the important aspects for business is to attract people along with maintaining effective investment strategies. From analysis, it can be observed that most of the business fails to do so since they do not maintain effective investment strategies. In illustrating the above view point, building future view point is one aspect that business can implement. However, maintaining effective work force for long term also retains customer's attention towards a brand. This helps business to maintain its customer interaction along with effective investment strategies. However, from studies, it has been identified that Barratt development plc follows effective strategies in order to over the issues and develop effective sustainable values in order to main the efficacy of business (Barrattdevelopments.co.uk, 2017). 

Issues based on sustainable values

• Keeping people safe

• Investing in proper development and innovation

• Operating efficiency

• Sustainable sourcing 

Table 3: Issues based on sustainable values

(Source: Created by author)

5. Recommendations to Barratt development plc

As influenced by the idea of Hoi et al. (2013), it can be said that Business ethics is effectively referred to the whole set of guidelines or values that are utilised in order to, judge the actions and behaviours in an organisation. From the above points that have been mentioned in this assignment, it is well known that Business Ethics are very important and every organisation is required to implement these in the organisation, Irrespective of the nature of an organisation and its functions. An unethical employee is considered to promote corruption and could also be a very serious liability to the organisation. These produce bad impression and damage the working culture within an organisation. Hence, it is very efficient and important for every organisation to promote effective ethical training in order to, enforce ethical principles and values within an organisation. 

There are many steps that can be followed by Barratt development plc, in order to make its work culture adhere to the ethical principles that are followed in every organisation. The first recommendation that can be effectively provided to the organisation is that it is required to develop a code of ethics within the organisation. This is the most preliminaries stage that is the most initial stage in order to; promote the ethical behaviour among all employees. This will help in the process of understanding the ethical expectoration and rules in Barratt development plc. In order to develop the ethical codes within Barratt development plc, organisation is required to provide ethical training to its employees. Through the means of ethical training, employees in Barratt development plc will get a clear idea regarding the code of conduct. It will also enhance the communication in between the employees and Barratt development plc. This will effectively result in promotion of ethical culture, which will help in developing positive image of Barratt development plc.

Senior managers are required to follow ethical principles in Barratt development plc. This will help in the process of creation of role models for the employees. While in the process of providing ethical training in Barratt development plc, it is most important to designate higher mangers as role models so that they can effectively promote ethical behaviours within the organisation. For this purpose in Barratt development plc, managers are required to be selected in a very considerate manner, so that they can set right examples for the employees working in Barratt development plc. There is also requirement of implementing strict actions or disciplinary steps for unethical behaviour in Barratt development plc. At the same time Barratt development plc is also required to provide incentives and rewards for those employees, who work adhering to all ethical principles and procedures this will lead to a sense of competitiveness for the rewards and will also act as a motivating factor for the employees in Barratt development plc.

6. Conclusion

It can be concluded that organisations implementing CSR model are benefited many aspects such as employee regulations, environmental regulations and economy. It has also been observed that implementation of CSR strategies in an organisation helps in understanding of the importance of social responsibilities towards its customers. It can be concluded that it is important for organisation to develop strategies based on employee satisfaction. It has been demonstrated in this assignment that that maintaining the legal duties in order to act for financial interest deals with maintaining ethical theories. Is has been identified that a Strong CSR management leads to improve customer satisfaction, leading to maximizing profit. Therefore, CSR programs lead to reduce cost by managing of liabilities and potential risk in an effective manner.

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