Corporate Social Responsibility

BC Hydro

Companies and firms are becoming more and more socially aware when it comes to issues such as the environment. With rapid social changes businesses would have to review their business objectives more often than before. For example in recent years there has been a positive attitude towards hiring female employees as well as becoming more environmentally friendly, as such many businesses now encourage and promote eco-friendly behaviors within the firm and hire more female employees over time.

The point of having good CSR may have many advantages which include it being a motivational factor as well as improving on corporate image.

With the changes in social norms, many new business opportunities arise, for example to make producing electricity more efficient and ‘smart’ BC hydro has implemented a mandatory program of installing smart meters within all households by the end of 2012. Firms such as Energy Aware has worked with BC hydro and has produced a complimentary good that would allow one to observe “how much electricity you are using and how much it is costing you”. However although the incentives of BC Hydro seems to be good, there are many concerns relating to the smart meter such as health concerns, privacy concerns and whether or not it would actually drive down the costs of electricity bills.

With the many concerns with the smart meter the issue arises for Energy Aware is that since people are so opposed to the project to begin with why would they buy The Power Tab? To top it off The Power Tab is going to be on the more on the expensive end, why would people pay a premium? As such BC Hydro and Energy Aware should work together and figure out a way to minimize the resistance to change.

In my opinion BC Hydro should not make this smart meter program a mandatory one and allow people to opt-out of the program as well as becoming more transparent. As such misunderstandings may dissipate and the resistance to change will lower.

sources: Com292 class + assignment

picture: http://www.trilliantinc.com/library-files/partners/EnergyAware-01.png

In recent lectures of economics and business fundamentals the issue regarding firms being socially responsible was brought up. In commerce class, we discussed why it is important for businesses to act ethically, advantages of acting ethical may include attracting consumers as well as the possibility of motivating employees. However in economics class the professor stressed how it is now “cool to be green”. Which begs the question of whether or not businesses can act socially responsible as a business strategy or whether they really care.

In companies in the Fortune 500 firms in America, all firms would publish either sustainability, CSR or environment reports. This illustrates how in order to survive in today’s competitive market a firm has to in one way or another be socially responsible.

In my opinion whether or not the firm really cares about being socially responsible or using it as a business strategy to remain in the market would come down to the culture of the business. The culture of the business would have its own boundaries which creates distinction from one organization from another. In the end it comes down to a lot of factors and it would ultimately be up to you the consumer to decide whether or not the business or firm is socially responsible.

Sources: http://www.sustainable-supplychain.com/fortune.html