CORPORATE SUSTAINABILITY & CORPORATE SOCIAL RESPONSIBILITY: A CASE OF KHIMJI RAMDAS
Introduction
Different organizations intend to contain the corporate sustainability and corporate social responsibility. In this contemporary business era, the most important thing for companies is to enable the business sustainability and integrate with the social responsibility, as it makes the reputation and image in the competitive market. In the Sultanate of Oman, companies are looking to maintain the corporate sustainability and corporate social responsibility. Several models of corporate sustainability and corporate social responsibility are to be examined in this study. Khimji Ramdas is an established business conglomerate in Oman. Due to the business sustainability, the company has celebrated 147 years of the success
Company Background (Khimji Ramdas)
Khimji Ramdas has shown its leadership in different business operations. This business diversity is in the limelight, as the business of this company is divided into four strategic groups. These four strategic groups are consumer goods, infrastructure, lifestyle and project, and logistics. The legacy began with Ramdas Thackersay with his son Khimji Ramdas. Gokaldas Khimji and Mathradas Khimji were two sons of Khimji Ramdas who started the company. The company depicted its vision and mission for all key stakeholders. The vision of the company is to maintain the pound inheritance of the past and endeavor to comprehend the full potential and promise of this millennium. The mission of the company is to sustain its leadership position to enable the superior product skills, and excellent quality in a sustainable corporate environment (khimji.com, 2018).
Elkington (1999) Triple Bottom-Line of Sustainability
The corporate sustainability, according to the Elkington (1999) is triggered by three main aspects. These aspects are profit, planet, and people. It is an effective model, which helps to measure the company’s social responsibility degree, economic value, and the possible impact on the environment. In this triple bottom line of the sustainable, the management of the company intends to focus on the social and environmental values instead of just profitability. In this modern business era, it is necessary for the company to maintain the balance between profitability and corporate sustainability. If a company wants to make the profit and depends on labor, which is less expensive, the company may experience big financial gains. However, it may result from the poor working conditions for employees, which is not accepted in the today’s business world. Regarding people, Elkington streamlined several initiatives, which can be taken by the company. For Instance, work-life balance, community-based education, equal opportunities, and well-being of all key stakeholders are some key initiatives. On the other hand, natural resource conservation, pollution prevention, and environmental Co-management are key initiatives. Regarding the profitability aspect, cost saving and revenue growth are important aspects. Thus, due to the perfect combination of this bottom-line, the company may contain the long-term corporate sustainability (Al Ani & Jamil, 2015).
Sustainability Regarding Economic, Social and Environmental Perspective
Critically, the sustainability of Khimji Ramdas is in the limelight. However, the company’s preferences are not clear. When dealing with different strategic business groups, there are some flaws or loopholes regarding the corporate sustainability. Regarding the economic, the main intention of the company is to gain the profitability. Despite containing high-profit margins, the company has to keep the balance. From the four strategic business units, the company has gained the high revenue streams and profitability. On the other hand, regarding the social responsibility (people), the company did not initiate something to make the difference, For Instance, in the production process of the consumer goods, working condition and environment is good. However, work-life balance initiatives have not been implemented by the company. Employees in the production and customer service seem frustrated due to the heavy workload. Relative to the environment, the company has taken many actions to prevent pollution. However, the natural resource conservation is not visible (Avina, 2013).
Relation to Stakeholders
The company has promised to ensure big shareholder return, and it is only possible due to the corporate sustainability. If the company wants to increase the profitability, the consistent return of shareholders cannot be attained, as integration with social and environmental values is important to accelerate the business growth in all strategic units such as consumer goods, lifestyle project and logistics, and infrastructure. Employees are key stakeholders of the company. The relation of the employee to the corporate sustainability is in the limelight. The employee sustainability or retention in the company has helped to enable the corporate sustainability (Barom, 2013). However, the loyalty of employee cannot be used, as ethically, the firm has to change or include some work traits in the work culture to enhance the visibility of benefits. The strategic supplier consideration has ensured the corporate sustainability in this organization. From consumer goods to the project and logistics, this company has considered the concentrated supplier. Sustaining god relation with suppliers is a good approach by the company to have the quality ingredients or machine supplies. Khimji Ramdas is still looking for low-cost suppliers when dealing with the different business operations. Suppliers are to be facilitated by the company to make the business input quite successful. Customer needs high quality and differentiated goods and services from the company for a long run. If the company sustains the system and structure of operations, the company can gain the competitive advantage through customer satisfaction and loyalty. Making a shift in the product or services is a good idea. However, the sustainability is a key to retain customers for the long run in the presence of other companies. For the general public, the sustainability of operations to produce high – quality products seems worthy, as Khimji Ramdas can create the well-being of people in the society (Choudri et al., 2017).
Examples
The related example is the sustainable production and services for customers. Interestingly, In Oman, this company has streamlined it’s a sustainable operation on different media channels. In the context of the customer, which is a prominent stakeholder of the company, the management has instated KR INFRA EcoLife in Facebook page. The purpose of this initiative is to educate and aware people regarding the water and energy conservations. The Water scarcity in this region is quite visible. Thus, accordingly, this form is looking to sustain its water and energy conservative issues and educate people accordingly. The corporate sustainability is the only key, which can boost the KR INFRA EcoLife.
Another example that this company depicts is the change. For instance, in the infrastructure group, the company has sustained its high-quality operations through embracing the change with the passage of the time. Instead of just focusing on the local building materials, the company has integrated with the international constructions brands to make the difference. The purpose is to provide high-quality building material. Integrating with the international brand is the big change, and the sustainability of the building material in the infrastructure business unit has been attained (Elghuweel et al., 2017).
Concepts of Social Responsibility, According To Carroll (1991)
The concept of the corporate social responsibility according to top Carroll is quite different. He explained the corporate social responsibility regarding ethical and philanthropic responsibility instead of just focusing on the traditional economic and legal responsibilities. He defined the corporate social responsibility as “the company’s sense of responsibility towards the environment and community. The corporate social responsibility is a depiction of pollution prevention, social education and adequate return on employing resources (Hetze & Winistörfer, 2016).
Critical Assessment of Corporate Social Responsibility of Khimji Ramdas
It has been observed that the company has taken several, initiatives regarding corporate social responsibility to develop the community and society as the whole. It is a fact that the company has started many social outreach programs, which have justified the enrichment of people’s lives in Oman. Interestingly, the company is looking to integrate with the 2020 vision, which also aligns with the social-economic development. The corporate social responsibility of the company can be accessed through Eshraqa, as it seems a great initiative to serve or facilitate an immense range of people in Oman. The community well-being, education, and health are several purposes of this particular initiative. Now, it is necessary to apply the four-part model of corporate social responsibility of this organization to derive some key insights (Hetze & Winistörfer, 2016).
Applying the Four-Part Model of CSR
Philanthropic Responsibilities
Philanthropic responsibility is a part of the corporate social responsibility in this modern business era, especially when operating in Oman. For Instance, this organization has helped different children with special needs. Immense facilitation for disabled children in the society is the key action, which has been taken by the company management. Several charity programs are held under the shadow of this organization to raise much to meet the needs of disabled children in Oman (Verbenyi, 2016). Thus, using own financial resources and raising funds for these children to justify the Philanthropic responsibilities of the company. It has been revealed that the purpose triggers the Philanthropic responsibilities. The company wants these children to emerge in the society and contribute effectively. It seems to make people able to emerge in the community of society, contribute to the economic success, and improve the living standard. The corporate social responsibility teams of this firm look sharp and proactive. These teams are identifying these children and streamlining different fundraising activities. It is a great help for the community, and interestingly, it has made the reputation of the company. Corporate social responsibility in term of Philanthropic responsibilities is separated from the traditional initiatives. Targeting the actual needs of people in the society matters, and it works for the company (Mehta, 2011).
Ethical Responsibilities
Khimji Ramdas contains ethical responsibilities, as different business operations in different business units are triggered by the ethical principles. For Instance, Khimji Ramdas integrates with honesty and integrity. For Instance, even in the decision-making process, the company intends to reveal information and provide opportunities for employees to take an active part in the decision-making process (Mousavi, 2013). Employees are assets of the company, and ethically, the company is quite responsible and realigning information and streamlining some ideas derived from the employee force (Minnee et al., 2013). For both, employees and community members, the company usually provides the necessary means to develop their potential and emerge as a great contributor. Regarding the internal business process, it has been observed that the company wants to make changes regarding technology. Instead of focusing on revenues streams and profit margin, the company is focusing on safe and secure working conditions, worker facilitation, and minimum pollution. Transforming the technology for different business operations can be expensive. However, the company is quite committed to fulfilling this ethical responsibility in Oman. For both, internal and external business stakeholders, the company is looking for a carry this ethical responsibility and become a CSR leader in the business community (Khimji, 2018).
Legal Responsibilities
The company has implemented different business rules and regulations effectively. Interestingly, this company uses the business laws and regulations as a key business input. In different strategic units of the business, these laws or regulations are quite aligned (Minnee et al., 2013). For Instance, in the construction or infrastructure process, the company is committed to implementing laws and regulations regarding the building material and safe working conditions. Also, the employee act has also been implemented by the company in all business operations, which directs the Omani government (Hetze & Winistörfer, 2016). Being aligned with the business law of the country is the responsibility of this firm, which also enables the corporate sustainability as well. The labor law, environmental law, and criminal law in Oman are main considerations of the business community (Peterson, 2004). The company management has accepted this responsibly effectively, and it made all key stakeholders quite happy and loyal in the competitive Omani business environment. Due to this existence of the environmental law in Oman, the company is working with the environmental society in Oman to raise awareness regarding the environmental conservations. As far as all fours strategic business units or operations are concerned, legal responsibilities are adopted to justify the key role in the corpora social responsibility process (khimji.com, 2018).
Economical Responsibilities
It is important for the company to make different strategies to maximize the profitability. If the company puts everything in people and planet initiative, profitability targets cannot be attained. People will lose their jobs, and chances of expansions will be diminished (Peterson, 2001). Thus, the economic responsibility has been fulfilled by this company, as several revenue streams have been streamlined along with a good return for the shareholders (Shehata, 2015). Being a good corporate citizen, the company has relied on its profitability. All investments regarding the environmental sustainability and social development depend on the profitability. Being a profitable company, Khimji Ramdas is in the best position to sustain its business operations and enable the best possible outputs for its customer (Wagner & Seele, 2017)
Example
The best example is Eshraqa, as it is a new website, launched by the company to streamline the corporate social responsibility initiatives. It is a community development initiative, which can be aligned with Philanthropic responsibilities. Through this platform, the company is willing to support the creativity, productivity, and standard of living. In Izki and Bedabad, the Philanthropic responsibility of the company is to take initiatives for women empowerment. Fundraising for Windows is a great example as well. Eshraqa is the depiction of the Philanthropic responsibilities. However, with the passage of the time, the company intends to open launch more sites to link with economic, legal and ethical responsibilities (Peterson, 2004).
Conclusion
In the end, it is to conclude that the corporate sustainability and the corporate social responsibilities are two integrate aspects of the business. Khimji Ramdas has implemented some remarkable CSR initiates or strategies. From community development to the business sustainability, the company seems proactive. Khimji Ramdas has the corporate sustainability, as several insights are illustrated through the critical assessment or corporate sustainability. Some key insights from the critical assessment of the corporate social responsibility have also been elaborated. The sustainability and responsibility are two prominent pillars of this company, which have elaborated the success for a long run.
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