Page 1 of 21
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 09
October 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 436
The Corporate Social Responsibility Policies and Their Impact on
Business Practice and Key Stakeholders
Special Reference: Sri Lanka Telecom Plc
Shobana Soundaralingam
Department of Management Faculty of Commerce and Management
Eastern University, Sri Lanka
ABSTRACT
The principle purpose of this research is to
find out the importance of corporate social
responsibility in this modern world and
analyse their impact on business practice
and key stakeholders, mainly focus on the
firms that they belong. A work place
corporate social responsibility policy is
very essential for every organisation and
thereby they need to be implemented
effectively as its impact on business
practice and key stakeholders are very
strong. An effective corporate social
responsibility policies impact on its
business practice and key stakeholders
positively.
For this study purpose Sri Lanka Telecom
PLC has been considered as sample in the
telecommunication industry. The Sri Lanka
Telecom PLC was considered as it
obtained two awards at the Best Corporate
Citizen Sustainability Awards 2014
conducted by the Ceylon Chamber of
Commerce. It was recognized as one of the
Top Ten Corporate Citizens for 2014 and
also received the Sector Award for the
Best Performer assessed in terms of
corporate sustainability in Sri Lanka on
the triple bottom line – people, planet and
profit.
Data were collected by primary and
secondary sources. It’s also based on
qualitative aspect than quantitative
because which is vital to be assessed for a
firm’s success. The questions specially
addressed whether effective corporate
social responsibility policies impact on its
business practice and key stakeholders or
not.
KEYWORDS: Corporate social
responsibility, Sustainability, Corporate
citizen, Organization, Stakeholders,
Transparency, Competition
INTRODUCTION
The modern business environment do not
allow for companies to simply be in
business for the sake of making a profit.
Companies become particularly
recognized for their social responsibility. It
Page 2 of 21
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 09
October 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 437
becomes part of what makes them famous.
And the benefits of being numbered are
obvious. This is mainly due to gradual
change in stakeholders’ thinking pattern.
Though earlier, stakeholders gave more
priority for the quality of goods and
services provided; now they become more
interested to know the benefits for the
community and environment by the firm.
Thereby being socially responsible is
essential for the long term sustainability of
a firm.
CORPORATE SOCIAL
RESPONSIBILITY AND
STAKEHOLDERS
For an organization doing business in
today’s turbulent environments,
stakeholders may be seen as important
sources for long-term value creation.
“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”( Mallen
Baker,2004). Different organisations have
framed out different definitions any how
there is considerable common ground
between them. The Mallen Baker’s
definition is that CSR is about how
companies manage the business processes
to produce an overall positive impact on
society.
Take the following illustration:
(Diagram by Mallen Baker, 2004)
“Companies need to answer two aspects of
their operations:
1. The quality of their management - both
in terms of people and processes (the inner
circle).
2. The nature and quantity of their impact
on society in the various areas.
Outside stakeholders are taking an
increasing interest in the activity of the
company. Most look to the outer circle -
what the company has actually done, good
or bad, in terms of its products and
services, in terms of its impact on the
environment and on local communities, or
in how it treats and develops its
workforce”. (Mallen Baker, 2004)
Page 3 of 21
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 09
October 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 438
STATEMENT OF PROBLEM
The current consumer climate doesn’t
allow for companies to simply do the
business for making a profit. While
consumers may rely on companies for
goods and services, the level of
competition allows customers to make
decisions based on how much good a
company is doing outside of the workplace
and how they are positively impacting
their community. (Adam Weinger, 2014).
Reporting on environmental and social
performance is now leading practice in
business wherever in the world the
business may operate. (KPMG Survey of
Corporate responsibility reporting, 2013).
“Dianne Taylor states that corporate social
responsibility makes financial sense and
adds meaning to the work and makes
everyone feel good (2010). Thereby
corporate social responsibility became an
inevitable concept for corporations for
their sustainable development. Specifically
the study shall attempt to establish the
importance of corporate social
responsibility policies of Sri Lanka
Telecom Plc and their impact on business
practice and key stakeholders.
PROJECT OBJECTIVE
To assess the Sri Lanka Telecom PLC’s
Corporate Social Responsibility and their
impact on business practice and key
stakeholders.
RESEARCH QUESTIONS
1. What is the CSR causes do people care
about across the world?
2. What are the main CSR policies in Sri
Lanka Telecom Plc?
3. What is the impact of Sri Lanka Telecom
CSR policies on business practice?
4. Who are the key stakeholders for Sri
Lanka Telecom Plc?
5. What is the impact of CSR policies Sri
Lanka Telecom on its key stakeholders?
LITERATURE REVIEW
“Corporate Social Responsibility is the
continuing commitment by business to
contribute to economic development while
improving the quality of life of the
workforce and their families as well as of
the community and society at large.
(World Business council for sustainable
development)"
DIFFERENT VIEWS ABOUT
CORPORATE SOCIAL
RESPONSIBILITY
The shareholder view
“Friedman argues that the social
responsibility of business is to make a
profit”.
