Tag Archives: business

Corporate Social Responsibility: Now a Law?

6 core areas of CSR

As pointed out by fellow student Vivian Jung, corporate social responsibility (CSR) has become an important factor in the success of a business.

In fact, India has recognized how crucial CSR is by instigating a law mandating its implementation in a company. The 2013 Companies Act requires all companies to direct two percent of average net profits in the three preceding financial years for CSR activities. Firms will have the freedom to select the causes they would like to contribute, and are required to appoint an internal CSR committee within the company. Should they not comply with this law, businesses will have to disclose reasons in books as to why they were unable to fulfill this requirement or face disciplinary actions.

Critics of this law say that pressuring firms to incorporate CSR into their business models will not produce the positive outcomes the Indian government is hoping for. I disagree with this, however, as companies will still be giving positively in some form to fulfill this social commitment, perhaps simply not as effectively or efficiently. A benefit of this law are the openings in employment opportunities for fields like social work and environmental development, as some see CSR equivalent to industrial social work.

November 17, 2013Permalink Leave a comment

E-cigarettes: a rising demand

In recent years, smoking has fallen in many countries; however, consumers have turned to “vaping”, the result of a new alternative called E-cigarettes.

E-cigs have become the new hype, and work by heating liquid nicotine into vapour which smokers then inhale and exhale. In Europe alone, 7 million people use e-cigs, where it competes with cigarettes and smoking cessation products without the taxes and regulations.

As e-cigarettes rise in popularity, the tobacco industry must consider whether or not a “Kodak-moment” (when Kodak, the biggest maker of camera film, failed to adapt to consumers’ change in taste) will come and how they should adapt to stay in the game. Some firms have taken pre-emptive measures against this possible future, using tactics such as taking stakes in e-cigarette companies or developing their own products; nicotine-inhalers and less-toxic tobaccos are expected to roll out within the next few years.

Check out this news report regarding the safety of e-cigarettes (watch till 4:05)

The safety of e-cigs are controversial; however, it does not seem to be affecting the rising demand for it. Yet.

Standing alongside Rafael Castillo, I agree that although tests have been done to judge the e-cigs’ effectiveness in smoking cessation, its use can only be condoned, not recommended. Reasons being it fails to ween one out of the habits of smoking (holding, lighting, and breathing a cigarette) and some users may misinterpret e-cigs as a “healthier” alternative to tobacco, continuing their intake of nicotine through that.

Fellow student Scott Marshall also gives his take as to what the European Union should do. What’s your take on e-cigarettes?

October 8, 2013Permalink Leave a comment

Edgy Advertisement

Trying to Be Hip and Edgy, Ads Become Offensive

Controversial ad by Mountain Dew, whose parent company, PepsiCo, had to apologize on behalf of later on.

In an effort to breakthrough to the millennial market, many major companies have fallen victim to ad controversies, where the viral commercial they wanted to create comes out offensive and degrading, causing public outcry. The market has become an increasingly competitive place, and companies now view the production of ads as a “race to retweet and to click ‘thumbs up’, ” (Nancy Hill, president and chief executive of the American Association of Advertising Agencies) causing the inevitable cycle of contentious ads being released, public outrage, and apologies from firms with promises to never do it again. But does it stop at that? Take PepsiCo for example, a big name corporation facing several controversies regarding its Mountain Dew brand due to vulgar lyrics in an ad sung by Lil Wayne, and another discriminatory ad created by hip-hop producer and rap artist Tyler, the Creator.

Personally, I do not think it will stop. Although I understand the intention of advertising agencies, who desire to create ads that do not get tossed away and forgotten within months of airing, the tactics used are unacceptable. An ad does not have to be sexual or violent in order to attract attention; creativity and humour are alternatives to producing pleasant and popular ads.

Bottom line: edgy advertisement can quickly draw public attention; however, is it ethical to exploit sensitive subjects for the mere publicity?

More information can be found below:

Link to original article: http://www.nytimes.com/2013/05/11/business/media/trying-to-be-hip-and-edgy-ads-become-offensive.html?pagewanted=all

Further reading: http://business-ethics.com/2013/05/17/1631-when-edgy-advertising-sends-the-wrong-message/

September 11, 2013Permalink Leave a comment