Corporate Social Responsibility

1. Corporate Social Responsibility (CSR) refers to an organisation’s sense of responsibility to operate its business with professional work ethics and moral, while giving care and attention back to the economy, society and environment that provided the necessary resources to sustain its business. This responsibility can be displayed through the creation of employment opportunities, reducing waste and pollution, performing charities, and should be done with no intention of bringing harm to the society (Wood et al. 2013, 4, 26-27).

The growing acceptance and practice of CRS by organisations worldwide is recognized as a strategic move to increase a business’ attractiveness to potential and existing employees (Economist, 2008), and to enhance the positive company reputation and brand image while earning adequate returns on the acquired resources.

According to Roth (2011), there are three primary benefits for organisations that adopt CSR programs. Firstly, organisation can obtain media attention and publicity relations to increase awareness for the company. When a 7.8 magnitude earthquake hit Sichuan, China in 2008, BreadTalk demonstrated one of the most memorable CSR act by creating the “Peace Panda” buns. All proceeds from the sales of the buns were used in the relief efforts for the people of Sichuan. The CSR effort showed humanity and compassion, leaving a deep impression with consumers. Although BreadTalk did not directly profit from the sale of the Peace Panda buns, the free publicity not only drew consumers into its outlets to support the good cause, but helped to boost sales of other breads.

Secondly, CSR effort helps to increase morale for current employees when they are given opportunities to take part in giving back to the society. This enhances team building, employee satisfaction and company loyalty. BreadTalk’s team of chefs, marketing, publicity and frontline staff work together to design, create and promote the “Peace Panda” buns using China’s national animal, the Panda.

Lastly, CSR aids in recruiting effort. Research has indicated that employees would choose to work at an organisation that provides them with the opportunity to give back to the society. Husted (2000) further supports that CSR can influence an employee’s perception of the organisation job satisfaction, organisational identification and commitment. Most employees prefer to be associated with organisations that have positive CSR organisation reputation and brand image. Research conducted by the Boston College Center for Corporate Citizenship (2009) indicated that 62% of employees prefer to work for an organisation that practices CSR and provides them with opportunities to take part in.

In conclusion, BreadTalk’s CSR act had successfully generated positive organisation reputation and brand image thru the “Peace Panda” bun relief effort. This influences both existing and potential employees to feel good about