Verified Document

Organization Corporate Social Responsibility CSR Refers To Essay

¶ … Organization Corporate Social Responsibility (CSR) refers to the relationship between a business and the society and how can both can benefit mutually through a joint partnership. Caroll (1991) suggests four different aspects to be a part of CSR and they are economic, legal, ethical and philanthropic. The economic aspect is the basis on which the business is built while legal responsibilities are encoded in law. Ethical responsibilities include doing what is right and just and above everything, philanthropic responsibilities include being a good corporate citizen and doing something good to the society and environment that has nurtured the business.

In this discussion, the CSR activities of two companies in the same sector are analyzed. The first company is Asia Pacific Breweries that owns the Tiger Beer brand of products and the second one is Carlton & United Breweries that manufactures the Victoria Bitter brand of beer. A close analysis reveals that APB is involved in a good degree of CSR and follows the principles of Triple Bottom Line while CUB prefers to try other options to boost its brand image. The in-depth view of the profitability of both the companies clearly shows that APB has a positive presence in the Indochina region and its CSR activities have given a huge boost to its corporate brand and image. VB, on the other hand, has consistently lost its market share to competitors in the last few years and they are facing a possible takeover. This study brings out the importance and benefits of incorporating CSR in every company's policy.

Introduction

Corporate Social responsibility (CSR) is vital for the growth and survival of every company today because of the growing competition. Globalization has made the entire world flat and it is an even playing ground for any player. Also, economic problems have made it all the more difficult for any company to stand out in the competition. In such a case, CSR is one of the concepts that can give a company an edge over its competitors.

Tiger Beer -- Company Profile

Tiger Beer is the flagship product of Asia Pacific Breweries Ltd. This company was founded in Malaysia and was formerly known as the Malaysian Breweries Ltd. In 1990, it merged with Fraser and Neave and Heineken International and got its current name. "The group recorded revenues of SGD1,783.5 million (approximately $1,163.6 million) during the fiscal year ended September 2007, an increase of 16.9% over 2006." (APB, 2010).

Tiger Beer is the first beer that was brewed locally in Singapore in 1932. Today, it is distributed to more than 12 countries in the Asia-Pacific region and it is also exported to Europe, USA, Canada, Australia, New Zealand and South America. It has won numerous awards for its excellent taste and is currently one of the best beer brands in the world.

CSR and TBL for Tiger Beer

CSR has been an integral part of business for Tiger Beer and its holding company, the APB. It encompasses the environment and social aspect of the region in which it has a presence. It uses energy efficiency in all its processes -- right from brewing to packaging and it also stays right on top of water consumption. They have a program called "Aware of Water" that emphasizes the good management of water. It also focuses on the community development of the region. The APB Foundation works with many NGOs to eradicate health problems, educate young children, provide clean drinking water to people and preserve wildlife and heritage of the region.

"By preparing and disseminating triple bottom line statements, an organization conveys an image of concern and sensitivity to the three dimensions of societal responsibility: economic, environmental, and social." (Brown, Dillard & Marshall, 2006; p.7). Tiger Beer, through its parent organization APB, works on all these three fronts to popularize its brand and also to reach out to people in need.

Positive and negative analysis

In the current economic times, every company is trying to boost its sales and improve its popularity among people. One approach towards that is through CSR and TBL. When a company uses the local culture and festivals to promote its brand, it tends to be successful. The Chinese New year has always been a good opportunity for Tiger Beer to promote itself because it is a way to hype its origin of being a Far-east Asian company. This year it is all the more important because it is the year of the tiger. "To...

metal and fire." (Event p.2).
In Laos, APB provided unlimited clean drinking water to victims affected by floods. Also, it was the main sponsor of the Elephant festival -- a UNESCO event aimed at protecting the elephant. All this was obtained for a chance to open a brewery in the country. It was trying to challenge Laos Beer which currently owns 98% of the market. In a few years, this region contributed to more than 23% of its total revenue. (Media, 2008). So, this has worked well for the company.

It also uses CSR as the basis of its marketing and as an approach to reach people directly. It has popularized the company in the Indochina region and it contributed to more than 48% of its profits. In Malaysia, it supports primary education and in 2008 provided basic school supplies to more than 498 needy students in this country. It is a way of giving back to the society that helped its growth and in return, this has helped the company to weather the turbulent economic challenges of the past few years. In 2010, its profit surged by more than 45% and it gained S$77.5 million in additional sales. The overall revenue grew to S$1.25 billion and this is a good 17% rise. The main reason for its increased sales and profits has been due to its extensive program of reaching out to people.

Company Profile for VB Beer

Victoria Bitter is an Australian beer and it holds the largest market share in Australia for all kinds of brewed beer. It is manufactured by a company called Carlton & United Beverages, a subsidiary of Foster's. It was introduced in 1890s and since then it has been selling beer with different levels of alcohol for different users. It also has a good presence in New Zealand, Indonesia, UK and to a limited extent in other countries. It is the only billion dollar beer retailer in Australia.

CSR and TBL for VB Beer

VB Beer is a relatively quiet beer company in terms of marketing and advertising. According to Neil (2005), this company relies on word of mouth advertising and promotions in bars to boost its sales in Australia. Victoria Bitter uses other options to face this tough economic environment. It does not make use of CSR and TBL for expanding its business. According to New York Times (2003), this company is looking to make a foray into wine business and is acquiring many companies that are engaged in wine business. The sales of beer fell in Australian pubs after the Victorian Government banned smoking in pubs and New South Wales restricted its slot hours and to make up for it, the company entered into the wine business. It bought Beringer Wine Estates of Napa Valley, California in 2000 to further this business idea.

Positive and negative analysis

TBL is one of the better ways to market because it gives an opportunity for the company to have a role in the local people's everyday life. Resorting to other ways many not be a successful option as is reflected in Victoria Bitter. It has seen a fall of 5% to 16% in its market segments during the last few years. (Mercer, January 2010). Many younger people have moved to lighter beers and low-carb ones and this has affected its growth. Also, many foreign players are entering the market and this has intensified competition.

To cope with these challenges, they have decided to spend more money on advertisements. According to (Waugh 2007, p.5), "The campaign will follow an initial $7m national advertising and marketing drive to support the launch of VB Mid comprising outdoor, print and TV execution in major markets around the country, developed in conjunction with ad agency George Patterson Y&R." This is an example of their marketing strategy and it clearly does not include any kind of TBL.

But, this move has not helped the company in anyway to boost its profits. Magee (2010, p.31) states, "FOSTER'S is planning a major campaign to boost ailing Victoria Bitter sales after unveiling a full-year loss that wiped out almost 4.5 per cent from its value and the company cancelled its final dividend. Slowing demand for beer, the strong Australian dollar and the international wine glut were behind Foster's $464.4 million annual net loss." She also further states that many companies are lurking to take…

Sources used in this document:
References

Brown, D., J. Dillard and R.S. Marshall. (2006) "Triple Bottom Line: A business metaphor for a social construct." Portland State University, School of Business Administration. Retrieved 28th September, 2010 from http://www.recercat.net/bitstream/2072/2223/1/UABDT06-2.pdf .

Caroll, Archie.B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons. Retrieved 28th September, 2010 from http://w3.uniroma1.it/moscarini/materiale%20seminario/Carroll.pdf

Shoebridge, Neil. (2005). A Quiet Beer. BRW. Vol. 27 Issue 18, p65-65.

Antonia Magee.
Chris Mercer (15 January 2010). Insight - Foster's Group revamps VB in beer market shift. Retrieved 28th September 2010 from http://www.just-drinks.com/news/insight-fosters-group-revamps-vb-in-beer-market-shift_id99557.aspx?d=1
APB gives back. Onine, retrieved 28th September 2010 from http://www.apb.com.sg/apb-gives-back.html
Cite this Document:
Copy Bibliography Citation

Related Documents

CSR Corporate Social Responsibility CSR in This
Words: 2206 Length: 8 Document Type: Essay

CSR Corporate Social Responsibility (CSR) in this article discusses the fact that corporate responsibility is fledgling in protecting employees at Ealing Hospital. The case discusses instances when professionals lost their jobs when stepping forward to report others fur unethical conduct. There is evidence that the hospital has covered up several instances of fraud and attempted to remove those that reported wrongdoing. The Health Secretary, Stephen Dorrell has reported that an investigation

Corporate Social Responsibility in Indian Pharmaceutical Industry
Words: 10268 Length: 32 Document Type: Dissertation

Corporate Social Responsibility in Indian Pharmaceutical Industry An Exploratory Study Outlook of CSR in India History of CSR in India Philanthropy in Indian Society Modern Form of CSR in Indian Society Profile of Indian Pharmaceutical Industry Rationale for Selection CSR Activities by Indian Pharmaceutical Companies Major Influences Over CSR Activities Scope of CSR Activities Comparison of Indian & Western Pharmaceutical Companies This research paper is concerned with the recent practices of Indian pharmaceutical companies in the field of corporate social responsibility. For

Implementing Corporate Social Responsibility CSR in Saudi Firms
Words: 2739 Length: 9 Document Type: Literature Review

CSR in Saudi Firms Corporate Social Responsibility References to corporate social responsibility (CSR) reportedly occurred numerous times before the 1950s, however, in regard to CSR definitions, that particular decade birthed the "modern era." Carroll (1999) compliments the researcher's current study as it expands on the historical progression of CSR definitions. According to Carrol, Bowen initially defined the social responsibilities of businessmen; explaining that the concept relates to the obligations businessmen have to

Corporate Social Responsibility and Transnational Companies in
Words: 2956 Length: 10 Document Type: Essay

Corporate Social Responsibility and Transnational Companies In this essay, I have discussed how essential Corporate Social Responsibility (CSR) is for the success of Transnational Corporations. UN Global Compact is also being discussed. I have also included case studies to support of Nike, Primark and Microsoft. Moreover, I have included positives and negatives about CSR and the factors that exist in CSR which may lead to the success of transnational corporations. Finally,

Corporate Social Responsibility Defining Corporate
Words: 1340 Length: 4 Document Type: Term Paper

As social networking became more widespread, facebook opened up more products and increased its users. Job seekers are starting to see the negative effect of posting or private information on facebook as they more and more employers access facebook and use private information of these jobseekers in the hiring process. This aspect has lead to look at Corporate Social Responsibility of implications of Facebook's privacy policy Facebook outlines the following

Corporate Social Responsibility Literature Review a Topic-Corporate...
Words: 4258 Length: 14 Document Type: Essay

Corporate Social Responsibility Literature Review a topic-Corporate Social Responsibility The term 'corporate social responsibility' is a social word that has often taken the world by a storm at its mention. Noya and Clarence (2007) in their book "The social economy: building inclusive economies" offers a succinct description and understanding of what normally takes place and get exemplified at the mention of this term in the business world. Many writers of business journals

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now