The below report is about BT Finance’s CSR behavior and relevant benefits. Through writing report, my writing skills have improved. I elaborate some advantages and cost of carrying CSR in order to persuade the company achieve SDG
extract:
Executive summary
As a multinational financial company, BT Finance decide to shoulder Corporate Social (CSR) Responsibility in terms of achieving one of Sustainable Development Goal (SDG). Therefore, the company focus on solving poverty issue. This report will explain what CSR is and explore the cause of poverty. In the end, this report will provide some reasonable recommendations to the company.
Introduction
Many entrepreneurs begin to value CSR because it could improve brand image and increase customer loyalty (Russell 2018). BT finance also would like to responsible to social. At the same time, there is a serious of unemployment and economic problems existing in some countries around the company. Therefore, the company hope to improve the situation with their effort and effect. This report will explain what the CSR and focus on the cause of poverty through analyzing some relevant information. Then, some corresponding solutions will be proposed to the company.
Body
Collier (2018) claims that “Corporate Social Responsibility (CSR) is when a company operates in an ethical and sustainable way and deals with its environmental and social impacts.” That means CSR should protect environment and improve social in long term. In addition, the CSR of multinational company has been recognized extremely efficient in international development because large companies could use their global resources to support SDG. Therefore, some developing countries like India require business engage CSR to improve local society (Osuji 2016, p133).
There are many reasons causing poverty, such as poor education, inequity, illness and infrastructure shortage. Firstly, not all children have the chance to accept education. Because many poor families cannot afford tuition fee and need children work for the family. Moreover, some parents do not believe that girls should go to school. However, excellent enterprises usually have requirements for employees’ qualification. Therefore, these children lose chance to find better job rather than those who accept high level education. Secondly, Inequity is widespread in social. Sometimes it is obvious, like gender and racial discrimination. However, in some situation, it is hard to aware. For example, some people’s thought can not be heard in community meeting which means social resources will be distributed in unfair way. Thirdly, there are usually diseases in poor area. These places are in dirty sanitation environment and lack of basic medical facilities. Therefore, local government must devote much energy and capital to against illness. As a result, the government have little money to develop their country and solve poverty. Lastly, lacking infrastructure, such as roads, internet and cell phones, means that people need to spend more time and energy to communicate and trade commodity. Thus, people become poor because isolation reduces development opportunity (‘THE TOP 9 CAUSES OF GLOBAL POVERTY’ 2019).
More and more financial company begin to carry CSR in recent years. For example, Wells Fargo provide over $6 billion loans to local community development and bank of America spend $70 billion improving global climate (Whited 2014). BT finance would like to contribute to society in order to increase public image and alleviate poverty issue in recent years. At the same time, many countries around BT finance is experiencing unemployment problem and economic depression. Therefore, what the company want to achieve is increasing local employment rate and promote market prosperity. However, solving poverty cannot merely rely on money. In fact, “in spite of the roughly $1 trillion that has been spent on grants and loans to fight poverty around the globe since the end of World War II, nearly half the world’s six billion people still live on less than $2 a day; a fifth get by on less than $1” (Lodge 2002). Therefore, if the company would like to solve poverty issue, reasonable and efficient solutions should be adopted. BT finance should focus on the root cause of poverty of these countries. In fact, these countries existing many unemployed people who lack of knowledge and skills. This leads to oversupply in the commodity market because of many people cannot afford living cost. As a result, more people lose jobs and these countries become poorer than before. There are some solutions could improve this situation, such as establishing a foundation, creating job etc. This report will focus on several recommendations in detail.
Recommendation
Firstly, BT finance could lend loan to the poor in low interest rate and provide entrepreneurial chances. Many banks are not willing to lend the poor money because they are afraid the poor will waste the money so that they cannot return money in time. However, there are many people who have ability to use the loan efficiently cannot out of poverty existing due to capital shortage. In initial, the company could invest capital in entrepreneurship aspect. The company could lend money to the poor and help them start their own small business afterwards. Then, more employment job opportunities will arise when small business increases. As a result, poor situation is likely to be alleviated when more people are employed.
Secondly, the company could invest more projects relating to education. For instance, the company could set up scholarships and bursaries for local children. High educated people are not only competitive and easy to find jobs but also could develop the country. For example, educated people could build infrastructures to satisfy people needs and reduce living cost. Transportation and communication will become more convenient when roads and light cable are paved. That means commodity exchange is more frequent and economics is more prosperous. Therefore, solving poverty needs more educated people.
Lastly, Uneven social resources can be alleviated by the company’s efforts. For example, the company could establish a poverty alleviation foundation. Then, the foundation could collect large amount of capital from wealthy people for solving poverty issue. Furthermore, BT finance will charge and operate the funds for helping the poor. Moreover, the company has access to collect the poor information and provide it to caring people in society. Dropout children might return school and unemployed may find a new job again through this method. As a result, social resources can be allocated reasonably.
Summary
In summary, CSR is a significant part of business operation. Furthermore, Sustainable development is inseparable from Corporate Social Responsibility. Then the main reasons of poverty are education shortage, social inequity, illness and lack of infrastructure etc. Therefore, BT finance would like to solve the poverty issue in ethical and environmentally friendly ways. This report suggest that the company solve poverty issue in aspect of lending low- interest rate loan, investing education and allocating the social resources reasonable.
Reference
Russell, K 2018, ‘Why CSR: Four Benefits of Corporate Social Responsibility’, fronetics, viewd 11 May 2019
https://www.fronetics.com/csr-four-benefits-corporate-social-responsibility/
Collier, E 2018, ‘The Importance of Corporate Social Responsibility for Your Business’, high speed training, viewed 11 May 2019
Osuji, O K 2016, ‘Rights and Corporate Social Responsibility: Competing or Complementary Approaches to Poverty Reduction and Socioeconomic Rights?’, ringer science, vol 136, pp 29-347
‘THE TOP 9 CAUSES OF GLOBAL POVERTY’, 2019, concern world US
Whited, A 2014, ‘What are good examples of CSR concepts developed by financial corporations worldwide?’, quora, viewed 12 May 2019
Lodge, G C 2002, ‘Using Big Business to Fight Poverty
’ Harvard business school, viewed 12 May 2019
https://hbswk.hbs.edu/item/using-big-business-to-fight-poverty
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