week10

1. In your own words and using referenced quotes describe what is meant in strategy by ‘organizational purpose’ and describe what is meant by ‘corporate social responsibility’.

                                                      
The main purpose of every organization is to meet their pre determined mission, vision, goal and objective. They exist and operate to get their purpose and it will be possible through strategies. Every organization bear common purpose of making maximum profit, customer satisfaction, increasing the market share and increasing shareholder’ value.  But this purpose are break down in long term and short term objective of the organization.

World famous McDonald’s has its organizational purpose as being the best by “providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."
                                                  
Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. (www.investopedia.com)

The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because:

1.      Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society.

2.      When times get hard, there is the incentive to practice CSR more and better - if it is a philanphropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove.

2. Should organizations focus more on profit and shareholder satisfaction or responsibility and stakeholder satisfaction? Discuss your own thoughts but try to support your ideas with theories or examples.

Stakeholders are people or groups that are most likely to get affected by an organization and vice versa. This group comprises of customers, government, society, government, employees and employees. It is through their co-operation and coordination that an organization's success depends and without them being satisfied, it will be very hard for an organization to perform well. There is no doubt that organizations operate for profits and to satisfy shareholders. But what is most important for an organization in long term is goodwill and credibility and the two ways of gaining these are undertaking corporate social responsibility and satisfying the stakeholders. There also other benefits that come with these such as good reputation, access to capital and resources, reduction in costs and so on. Thus, organizations should focus more on responsibility and stakeholder satisfaction rather than profit and only shareholder satisfaction.

For instance, Pepsi Co an American Multinational Corporation that manufactures and supplies food and beverages donated $20m to a project named Refresh Project that helped orphans. In the same way, Chaudhary Groups a renowned FMCG company in Nepal organizes various sponsorship and scholarship programs for the welfare of the society. Though, one of the major objectives of these companies is to earn money, they are also working towards bringing social reforms in the society. They are socially responsible and have been conducting corporate social responsibilities in the form of various activities, projects and programs. This has helped gain these organizations goodwill and credibility from the customers and stakeholders which in result has helped them better their performance and stand out from the crowd.

3.Write about experience with today's case study? What answers did you give to the questions? What did you think of the CEO? 
The case study was not just an academic work for me but also a good source of information about PepsiCo, its products and strategies as I didn’t know much about the company. The only products I knew that belonged to PepsiCo are Pepsi and lays but now I know that there are many other products and product lines of PepsiCo and I will definitely try some of them.

Talking about the CEO Indra Noovi, is an inspiring lady. She has proved us that even a woman can work well and be a top professional in her field. She has managed to well handle this big and reputed multinational corporation. In addition, she is also working for making the corporation a corporate citizen and she is doing this by offering healthy foods and drinks to the customers as well as sponsoring and donating huge amount of money to programs and projects. Indeed, she is a woman who is kind, generous, smart and confident. 

REFERENCES

1. Corporate Social Responsibility<online> Available at<http://www.investopedia.com> Accessed on [10/01/13]

2. Governance and ethics<online> Available at <http://csr.cisco.com/> Accessed on [09/01/13]

3.TakingITGlobal; Corporate social responsibility. <online> Available at < http://issues.tigweb.org/csr?gclid=CKmLvav4zrUCFct56wodjnYAng > [Accessed on 07/01/13].

4. Corporate Social Responsibility <online> Available athttp://www.businessdictionary.com/definition/corporate-social-responsibility.html [Accessed on 09/01/2012]