Page 1 of 22
Journal for Studies in Management and Planning
Available at https://pen2print.org/index.php/jsmap/
ISSN: 2395-0463
Volume 04 Issue 09
September 2018
Available online: https://pen2print.org/index.php/jsmap/ P a g e | 1
Is the practice of Corporate Social Responsibility (CSR) by multi-national companies
purposely for customers’ Social Well-being or extortion and profit maximization? (A
CASE OF APPLE INC & BRITISH AMERICAN TOBACCO)
BY Corresponding Author
ACQUAH EBENEZER
International Masters in Business Administration (IMBA) - Zhejiang Normal University
College of Economics and Management; China-Africa International Business School,
Jinhua, Zhejiang Province, People’s Republic of China
Email: acquahebo@gmail.com, eboacquah@yahoo.com; Tel: + (86)131-05893876
Co - Author:
SESEDZAI NOKUTHULA MUTEMA
College of Economics and Management - Zhejiang Normal University
Email: nokuthulamtema@icloud.com ; Tel: +8613221298397
Abstract
This study highlights the concept of corporate social responsibility through the use both theory
and practice to analyze the argument for and against CSR. Over the years, some scholars argue
that performing CSR activities is for the business’ profit maximization whiles others argue that it
is for the society wellbeing. The study focuses on analyzes two of the world’s multinational
corporation CSR activities to try to answer whether it is for the society’s wellbeing or the
company’s profitability. Finally, we presents the benefits that both the business corporation and
the society receive from CSR activities and arrives at the conclusion that when companies
undertake CSR activities is a win-win situation for both the society and the corporations when it
comes to CSR.
Table of Contents
1.0 INTRODUCTION ............................................................................................................................3
1.2 THE PROBLEM STATEMENT ..................................................................................................4
1.3 THEORETICAL FRAMEWORK ................................................................................................5
1.3.1 Social Contract Theory .........................................................................................................5
1.3.2 Legitimacy Theory................................................................................................................6
Page 2 of 22
Journal for Studies in Management and Planning
Available at https://pen2print.org/index.php/jsmap/
ISSN: 2395-0463
Volume 04 Issue 09
September 2018
Available online: https://pen2print.org/index.php/jsmap/ P a g e | 2
2.0 LITERATURE REVIEW .................................................................................................................6
2.1 Carroll’s four-part theory ..............................................................................................................7
3.0 CASE STUDIES 1............................................................................................................................9
3.1 CASE 1: British American Tobacco.............................................................................................9
3.2 What BAT says about CSR?.........................................................................................................9
3.3 Harm reduction .............................................................................................................................9
3.4 More innovation, More choice....................................................................................................10
3.5 In generating sustainable value ...................................................................................................10
3.6 BAT CSR & Criticism................................................................................................................10
3.7 Changes in BAT..........................................................................................................................11
4.0 CASE STUDY 2: APPLE Inc........................................................................................................12
4.1 Background of the Company ......................................................................................................12
4.2 Apple INC. Corporate Social Responsibilities............................................................................12
4.3 Apple Supporting Local Communities .......................................................................................12
4.4 Apple Educating and Empowering Workers...............................................................................13
4.5 Labor and Human Rights at Apple .............................................................................................13
4.6 Employee Health and Safety at Apple ........................................................................................13
4.7 Apple and Gender Equality and Minorities ................................................................................13
4.8 Energy Consumption by Apple...................................................................................................14
4.9 Water Consumption by Apple.....................................................................................................14
4.9.1 Waste Reduction and Recycling by Apple..........................................................................15
4.9.2 Carbon Emissions by Apple................................................................................................15
4.9.3 Apple and Sustainable Sourcing .........................................................................................16
4.9.4 Apple other CSR Initiatives and Charitable Donations ......................................................16
5.0 The Impacts of CSR........................................................................................................................16
Conclusion ..................................................................................................................................................17
Bibliography ...............................................................................................................................................18
Page 3 of 22
Journal for Studies in Management and Planning
Available at https://pen2print.org/index.php/jsmap/
ISSN: 2395-0463
Volume 04 Issue 09
September 2018
Available online: https://pen2print.org/index.php/jsmap/ P a g e | 3
1.0 INTRODUCTION
The model most business entities in our dispensation leaning on to maximize their gains in terms
of customer size and profit is Corporate Social Responsibility. This concept was introduced in
1953 by Howard R. Bowen (Caroll, 1991) and Corporate Social Responsibility has been part of
the agenda for public policy makers, academicians, stakeholders in business enterprises and
communities, institutions and marketers. Over the years, Corporate Social Responsibilities has
developed and is gradually becoming the order of the day as dominant firms or business
enterprises are always reported of their works as part of their social agenda in magazines,
televisions and newspapers. The importance of Corporate Social Responsibility has been
recognized by many corporate entities or institutions in the developed nations. These institutions
have seen the need and the importance of being responsible in addressing certain basic needs
their consumers find it challenging in addressing them in the society. Studies from developed
countries reveal that consumers are becoming more aware of CSR activities (Bhattacharya & Sen,
Sankar, 2001).
This whole concept of Corporate Social Responsibility has also been emphasized and urged by
the Ghanaian and the former United Nations General Secretary, Mr. Kofi Annan. He said that
companies should adopt and put in place supportive policies and core values as far as human
rights, labor standards, the environment and anti-corruption are concerned. In the US, the San
Francisco-based Business for Social Responsibility has been working since 1992 to help
companies sustain their commercial success in ways that demonstrate respect for ethical values,
people, communities and the environment’ and it already has 1,400 member companies,
including American Express, AT&T, DuPont, Ford, General Motors, Johnson and Johnson and
Levi Strauss (Baofo &Kokuma, 2015).
In recent times, both organizations and societies have significantly increased their focus on
Corporate Social Responsibility (Adams. CA & Frost. GR, 2006; Gulyás, 2009; Young. S &
Thyil. V, 2009). Previously, companies had to focus on strategies for their business operations
and profit, such as differentiation, diversification, turnaround, concentration and globalization.
However,
recent developments in strategic thinking support the need to add activities that expand out from
the company into society (Amoako, 2017). These activities spoken about are identified as
Corporate Social Responsibility (CSR) activities (Carroll, 1979; Margolis. J & Walsh. J, 2001).
Therefore some scholars and other institutions have summarized these activities into a definition.
They posit that, Corporate Social Responsibility (CSR) as a concept entails the practice whereby
corporate entities voluntarily integrate both social and environment uplift in their business
philosophy and operations (Otchere-Ankrah et al, 2015).
