Research on the Importance of CSR

Table of Contents
Abstract........................................................................................................................ 2
Chapter 1: Introduction...................................................................................................... 2
1.1
Introduction....................................................................................................... 2
1.2
Background of the Research...................................................................................2
1.3
Research Aims.................................................................................................... 2
1.4
Research Objectives............................................................................................. 2
1.5
Research Questions.............................................................................................. 3
1.6
Research Type.................................................................................................... 3
Chapter 2: Literature Review.............................................................................................. 4
2.1
Introduction....................................................................................................... 4
2.2
Prior Research Study............................................................................................ 4
2.3
Conceptual Theory Framework............................................................................... 4
Chapter 3: Research Methodology........................................................................................ 5
3.1
Introduction....................................................................................................... 5
3.2
Statement of the problem....................................................................................... 5
3.3
Objectives of the study......................................................................................... 5
3.4
Need of the study................................................................................................ 5
3.5
Scope of the study............................................................................................... 5
3.6
Type of Research................................................................................................. 5
3.7
Data Collection Methods....................................................................................... 5
3.8
Overview of the Sample Study................................................................................ 6
3.9
Data analysis plan............................................................................................... 6
3.10 Ethical Considerations.......................................................................................... 6
3.11 Limitation of the Study......................................................................................... 6
3.12 Accessibility issues.............................................................................................. 7
3.13 Recommendations............................................................................................... 7
3.14 Conclusion........................................................................................................ 8
Chapter 4: Timetable and References.................................................................................... 9
Gantt Chart................................................................................................................. 9
Reference.................................................................................................................... 10

Abstract
This paper will aim to study from different aspects of the importance of CSR for a company in Singapore.
In the study, it will analyze different forces which have pushed both local and foreign companies towards
CSR programs which will conclude the importance of CSR.
Chapter 1: Introduction
1.1

Introduction

Corporate Social Responsibility is defined as the responsibility of a company towards environment and
social society. This can be simply identified as the focus of a company in dealing with people and the
environment it use for the production. By taking initiatives in helping to reduce pollution and protect
environment, or contributing educational programs, companies may earn adequate returns from the social
society and environment. Nowadays, Corporate Social Responsibility has become the most important
concern among all the companies in Singapore. It will cause short term expenses but long term profit
(boisselier, y. (2015).
1.2

Background of the Research

Many companies treat Corporate Social Responsibility as a burden to the profit margin. Some companies
even refuse to participate in the programs and doubt the linkage between CSR and long term profit.
However, majority of consumers in the market agreed that while companies try to achieve the profit
target, they shall participate in CSR programs at the same time. Companies which participate in charity
programs will receive a positive response, including brand value and customer loyalty which are
identified as companies intangible assets. Consumers also argued that retailers who is selling local
products will attract more customer loyalty. In the survey that conducted in this research paper, 82% of
the participants votes that they will trust the companies who support charity more than whose who shows
no interest in CSR programs. Participants also raise another point of view that they are more willingly to
buy those companies whose product are labeled as green and environmental friendly. This is due to the
increasing awareness of global warming and environmental protection from the public. Consumers now
are more concerning on the environment issues and they hope that the production will not destroy our
earth. Thus the needs for CSR in each companies is noted by the management board and more and more
are willing to participate in CSR programs (Knowledge, I. (2013).
1.3

Research Aims

By looking at Hua Wei and Mizuhos CSR programs, this report will analyze the reason of why
companies need CSR and the impact of CSR for different companies. The correct CSR will help
companies to increase profits and benefit in various ways in the long run.
1.4

Research Objectives

This research paper aims to achieve the following targets:

Find out the importance of CSR

Find sample companies who are actively participate in CSR programs

1.5

Analyze the data and compare the outcomes of selected companies

Analyze the importance of CSR from companies point of view

Conduct Survey among consumers and show the importance of CSR from consumers view

Show companies the benefit of participating in CSR programs

Promote and recommend companies to join in CSR programs

Research Questions

This paper will focus on the main question: Why do companies in Singapore need to take part in
Corporate Social Responsibility Programs?
To fully cover the question, this paper will analyze the importance of CSR through analyzing data from
selected companies and compare them against each other to identify the benefit of CSR programs. By
targeting companies view and consumers ideas, this paper will critically analyze the benefit of CSR
from both views and present to the board the need for CSR programs.
1.6

Research Type

The main focus of research type in this report will be qualitative research. It is to look for a pattern of
meaning on the basis of data. Since there will not be a specific figure shows how many percentage growth
that CSR has caused, by adopting qualitative research method, it is easier to analyze the meaning behind
the growth and study the responds from the public.

Chapter 2: Literature Review

2.1

Introduction

After discussion and analysis, the reason why companies in Singapore need to participate in CSR
program due to the following reasons:
2.2

Prior Research Study

Brand Differentiation
Brand differentiation is one of the primary reasons companies embrace Corporate Social Responsibility.
With a rising concerns of environment from the public, companies need to narrow their focus of CSR into
the environmental area for the implementation of differentiation strategy. The ethical value produced by
protecting environment helps the companies to easily gain public support for their presence in the global
market. In other words, companies could treat CSR as another form of advertising which helps them to
sustain a competitive advantage by using the social contribution.
Financial Performance
Using CSR engagement as a strategy to cut overall costs is one of the most reasonable argument for
organizations to focus on sustainability. Recent research and study shows that comparing to organizations
that focus only on profit maximization, organizations that engage in CSR achieved four times the growth
rate and eight times the employment growth. For example, General Mills installed the energy monitoring
meter as its measure of energy saving in 2011. By 2015, the organization reduced its energy cost by 20%
and successfully cut $600,000 cost. Objectively speaking, to focus on reducing waste and saving energy
would indeed introduce a short term expense to the organization. However, it will promote long term
sustainability and innovation; eventually generate plenty of profit to the organizations.
Political Pressure
Since the arising public concerns and the awareness of sustainability of the world environment,
governments from majority countries have expressed their focus on environmental issues. Governments
are implementing various strategies to show their interest in promoting both public and private companies
in engaging in CSR programs.
A company has to stay with government policy and align with the laws for its long term development. For
example, with a government which highly concerns its environmental protection, a chemistry of high
pollution will be penalized of destroying the water resource and air. Thus based on the nature of company
and the policy, companies need to adjust their strategy and protect the environment by reducing wastes.
2.3

Conceptual Theory Framework

By studying all the forces that mentioned by various sources, we have concluded the three main forces
above. Thus, we would look at Hua Wei and Mizuhos CSR program and analyse how it helped them
achieve their business goals.

Chapter 3: Research Methodology

3.1

Introduction

In this research paper, a combination of methods will be used such as publication research, interviews and
surveys. The research will not only based on the information released from the companies webpage, but
also from consumers view via survey result. The three selected companies are Hua Wei Technology PTE
LTD (Huawei.com, (2015), Mizuho Bank LTD and DBS Bank LTD. By collecting and analyzing the CSR
program in the two foreign companies and one local company, this paper will present the importance of
CSR in Singapore.
3.2

Statement of the problem

Some companies nowadays still refuse to participate in CSR programs and in the survey we conducted,
they reflected CSR as a time consuming program and a wastage of profits. Majority of them are SMEs
who has limited resources and do not want to reduce their limited profits.
3.3

Objectives of the study

This study is to show to companies who refuse to participate in CSRs the importance and the long term
profits that it will generate; thus will encourage them in participating into the programs.
3.4

Need of the study

The need of the study is very essential for both companies and public. Since CSR has been continuously
concerned by the government, the benefit it may bring to the companies is huge. For example,
government will have policies which raise the burden in venturing into the market except good
participation in the local CSR program etc. As another aspects, companies venturing into new market will
need to benefit the local people to attract business.
3.5

Scope of the study

This research paper will include a detailed market research for selected companies in Singapore including
domestic companies and foreign companies. By identifying the strengths and weaknesses, this research
will focus on the effectiveness of the CSR program and evaluate the companies achievement in CSR
programs. After comparing the data and achievement, a comparison of the result will be presented in line
with the companys goals and value. Thus the benefit of CSR will be clearly presented and the importance
of CSR programs is fully discussed.
3.6

Type of Research

In this paper, we had conducted several surveys with the employees and other public people regarding to
the satisfaction of both companies, Hua Wei and Mizuho bank. Also, we looked at the annual report for
both companies and their emphasis on CSR programs. From these data, we will analyze the importance of
CSR to the two companies.
3.7

Data Collection Methods

The main resources are from online publications and through that, a basic understanding of the companys
value and goals is achieved. After understanding the mission and vision of each company, an interview
with the staff in each company is conducted. The interviewees are the seniors and they show support in

participating in the interview and provide their views of the companies CSR programs. After the data
collecting from the company side, a survey is conducted. The survey is based on consumers view and
their ideas of the three companies image and their efforts in CSR program. This research paper will
include a detailed market research for selected companies in Singapore including domestic companies and
foreign companies. By identifying the strengths and weaknesses, this research will focus on the
effectiveness of the CSR program and evaluate the companies achievement in CSR programs. After
comparing the data and achievement, a comparison of the result will be presented in line with the
companys goals and value. Thus the benefit of CSR will be clearly presented and the importance of CSR
programs is fully discussed.
3.8

Overview of the Sample Study

Mizuho has participated in helping needy families which relates to its organization goal of human
oriented organization. They label them as the helpful and trust worthy organization in the market and this
CSR program will help them promote their name among the local people. Hua Wei has targeted in its
protection of environment which will label them as a environment protector and eco-friendly production.
From the data that we had collected, both companies achieved very successful results as these CSR
program really helped them generate more public attention and promote brand value.
3.9

Data analysis plan

The data that collected will be analyzed in qualitative method as mentioned above. By comparing the
result that collected from the sources, the two foreign companies are more focusing on people oriented
programs such as caring for children and elderly people and fund raising for various society. DBS as the
only local bank, focus evenly on both social and environmental prospects. This shows that foreign
companies targets local people more due to the goal of promoting brand image and improve customer
loyalty. Since Hua Wei and Mizuho Bank are non-production related companies, they do not focus on
protecting environment. This proves that they have carefully selected their target and try to achieve brand
image from both local customers and Singapore government. The survey result also supports the primary
suggestion that consumers are more willingly to purchase from companies who are actively participating
in CSR programs since they think the companies are more reliable and trustworthy.
3.10 Ethical Considerations
Before the interview take place, a primary communication with the three seniors from each companies are
held to understand the company rule. After clarification with them and picked out several sensitive
questions, the interview goes very fluent and successful. Online resources are found on the official
website and the objective blog posts or Facebook posts are avoided to ensure the reliability of the data.
3.11 Limitation of the Study
There are two limitation of the research. One is that the objective views from the three interviewees and
the online information. These information may be biased due to human nature. People may see things
differently; with only one interviewee from each company, it is not very convinced that the data collected
is correct. The other one is that the survey does not contain different age range. The people who took the
survey are mainly students and middle aged people. There was no elderlies or young children who
participated in the survey; thus the result is also not very reliable to a certain extend.
3.12 Accessibility issues

Since the database is limited, the opinion may be limited due to perceptions. For data collected from
internet, only the annual survey result is trust worthy and further data needs higher authority or payment.
Thus the survey and research result may be limited, but we had tried the best to achieve the most
subjective data from surveys and internet.
3.13 Recommendations
Companies shall focus on the core value of the company and develop a suitable path to achieve the
intangible assets by doing correct CSR. Due to the constraints that many local companies have not realize
the importance of CSR, there are two ways that may help to promote CSR programs.
Government Role
Governments need to provide vision and overall structure to incorporate sustainability for its
environment. With a clear vision and structure, companies will easily follow the governments goal; thus
achieve success for both companies and the government. Furthermore, governments would need to
establish certain regulations to control the companies from involving in the same area for their CSR
program. For example, government may set certain areas for companies to propose their interest area.
Thus various areas will be fully covered with will organization from government.
As mentioned above, government may establish certain policies to help companies to be more interested
in the environmental protection program. These policies may include both promotion and penalty. For a
company with high usage of water, government may set policy to control its quality of used water which
will flow back to the river. Government may provide subsidies for companies who are actively involved
in protecting environment and at the same time, penalize those companies who do not reduce the
pollution. With such policies, companies will target their CSR programs on the environment issue to
maintain their profitability.
Media Role
Nowadays, the various media play an instrumental role in modern societies. People are using different
media every day such as newspaper, TV and internet. With high influence, they can help to explain the
environmental policies, regulations and plans to the public; at the same time, reflect the public concerns
to the society (The Straits Times, (2014). This is a transparent two-way communication between the
public and companies. For example, being reported as a destroyer of environment, the company will
suffer huge loses including profits and reputation. Social media allows companies to involve customers in
their CSR program. In addition, public will also have the chance to learn the methods of protecting
environments; thus reduce littering the wasters around.
Facebook and Twitter are essential communications tools for any serious CSR program. Furthermore,
companies with long-term decision on protecting environment may report on their companys homepage.
These actions are to report their CSR instantly and transparently so that public may access and analyse
their process. Through social media, companies gain a following of people who are interest in their
programs; thus gain more intention from the public. People who use social media today are very aware of
environment issues since various reports showing the environment is polluted and destroyed. With a clear
and detailed planning posting on social media, companies will attract greater intention from the public.

3.14 Conclusion
In conclusion, companies shall participate in CSR programs which are relevant to their value and targets.
By doing correct CSR, foreign companies are more easily to gain customer loyalty since the local
consumer recognized the company as one that may benefit the public. For local companies, the awareness
of social society and environment shall be higher than the foreign companies to gain more market share
and thus, remain competitiveness and achieve sustainable growth.

Chapter 4: Timetable and References

Gantt Chart

Reference
Dbs.com, (2015). Corporate Social Responsibility, Build Social Enterprises | DBS Bank. [online]
Available at: http://www.dbs.com/corporate-citizenship/championing-socialentrepreneurship/default.page
Huawei.com, (2015). Huawei Singapore - A leading global ICT solutions provider. [online] Available at:
http://www.huawei.com/sg/
Mizuho Financial Group, I. (2015). Mizuho Financial Group : CSR (Corporate Social Responsibility).
[online] Mizuho-fg.co.jp. Available at: http://www.mizuho-fg.co.jp/english/csr/index.html
boisselier, y. (2015). Why is corporate social responsibility important today? - Page 4. [online] Socialeconomy-training.eu. Available at: http://www.social-economy-training.eu/index.php/m-news-events/mvet-eco-eu-news/72-new-eu-csr-policy?showall=&start=3
Knowledge, I. (2013). Corporate Social Responsibility: The Key To Attracting & Retaining Top
Talent. [online] Forbes. Available at: http://www.forbes.com/sites/insead/2013/11/12/corporate-socialresponsibility-the-key-to-attracting-retaining-top-talent/
The Straits Times, (2014). DBS sets up $50 million foundation for corporate social responsibility efforts.