Implementing a New CSR Strategy for New Balance Essay

Introduction newly match is a large confederation specialise in manufacturing footwear products at a global level. The case pick up reveals that New residual is shortly committed to formulating an combine Cooperate Social Responsibility (CSR), which will enable it to put itself in a sizeable position in a highly competitive market (Veleva, 2010). In 2009, the c each(prenominal)er-up was quiet down struggling to build a CSR, which would create a reputable name for its products in the global market. However, as Veleva (2010) illustrates, the firm faced various ch tout ensembleenges such as lack of a CSR section, which would foresee the carrying out of an integrated CSR. This c boths for the analysis of the various strengths and weaknesses of the attach to and lay out the steps it should follow in mechanisming an integrated CSR strategy. New Balance Strengths and WeaknessesOver whole Governance concord to Veleva (2010), even ahead the sacred scripture CSR became a commo n word in the global industries. New Balance perpetually insisted on being responsible for all its employees and the communities in which it was operational. Luo and Bhattacharya (2006) support this argument by explaining that for a company to have an effective CRS, it should start internally before going external. New Balance has strong values and governance system that ensures a freight to obligation both for internal and external components of its trading operations. Despite the fact that New Balance was so much committed to CSR, it left out key segments of corporate responsibility such as openness and accountability (Veleva, 2010). The companys framework did non provide a basis for its leaders to analyze the risks and opportunities of CSR, and this explains clearly, why it was alter by the economic recession of the year 2007-2009.Products and ServicesFrom the case study, New Balance had many consumers in the global market. One of its main strengths was the designing and m arketing of products. The company ensured that its products met customers expectation, and the same time ensured that these products were produced in anenvironmentally-friendly manner. tally to Sen, Bhattacharya, and Korschun (2006), a company should reduce on ensuring that its production does not compromise the capability of future extension to get such a product or even a better one. New Balance looked for materials and ensured that its production was socially and environmentally acceptable in order to increase the social benefits of its production. The case study shows that New Balance decided to take a different approach from other footwear companies by concentrating on recycling. This is one of its weaknesses in its production. Veleva argues that the company did not have a framework in place for accessing the impacts of recycled products. Some of the environmentally-friendly materials that the company used for its production did not produce quality and durable products, so did not attract customers. OperationsNew Balance has various strengths in its CSR strategy in terms of its operations (Veleva, 2010). One of the values of this company was to ensure that the working environment was safe for all its employees. By decrease the number of suppliers almost by half, New Balance was able to gain control over all its production, cut down on costs and hence improve efficiency. Another approach employed by New Balance was by getting rid of materials and production methods, which are harmful to the environment. This company focussed on recycling most of its waste products. Therefore, it cuts down on waste, hence reducing cost on disposal and at the same time protected the environment from pollution. In 2008, a time when US focused on ensuring nil pollution to its environment, New Balance was among the first companies that adopted the green chemicals to substitute the cleaners, which were used in previous years to ensure compliance with the set environmental standards. However, the company go through a challenge in controlling its suppliers, especially those oversea. Another challenge for the company was to manage its CSR activities foreign and hence, there was a gap between its domestic CSR and oversees CSR. Community SupportAccording to Veleva (2010), New Balance is a company that always supported the communities in which it had operations. New Balance employees took pride in volunteering and helped the environ communities. Accordingto Engardio et al. (2007), benignity and volunteering are one of the major factors that enable a company to retain and suffer its employees. Volunteering as a value was steered by the CEOs of the company Anne and Jim Davis, who embraced it and ensured that all their employees were active and valued association work. Volunteering and charity work is a value that improves populace relations of an organization, its corporate image, trade name, employee teamwork and skill building (Margolis, Elfenbein & Walsh, 2007. However, contempt the not bad(p) involvement in community support, New Balance community support strategy was not in line with its business strategy. The company mainly focused on the US communities and lacked a fitting conference plan to communicate both to its internal and external stakeholders. AnalysisFrom the strengths and weaknesses identified, New Balance should focus on three of the main areas identified with great risks effective leadership, a structure for recognizing CSR risks and opportunities that are of great importance to the business and aligning of CSR strategy with business strategy. With clear and effective leadership and a CSR that is aline with a business strategy any company can reach its highest level of production and grounding (Luo & Bhattacharya, 2006).Steps for implementing an integrated CSR strategyWho should be involved?According to Sen, Bhattacharya and Korschun (2006), for any CSR to be implemented masteryfully, all stakeholders b oth internally and externally should be involved. While CSR is mainly steered by leaders, New Balance should at all stages involve its employees. Various studies have shown that employees play a vital place in CSR writ of execution and making it a success. Suppliers as part of the external stakeholders should also be involved in CSR capital punishment in order to give their views on whether it is aligned with business strategy or not. What should the Communication formulate consist of?New Balance should adopt a comprehensive communication plan that will efficaciously communicate its CSR activities internally and externally.Internally, the company can focus on newsletters, meetings, Internet communication, to ensure that employees are always aware of CSR activities and their progress. According to Engardio et al. (2007), frequent and clear communication on CSR to employees enables them to know that CSR is a priority and hence commits themselves to look at it a success. External ly, the company should come up with a communication plan that will let out all external individuals and groups that need to be made aware of the CSR activities and how to reach out to them. External CSR communication channels can consist of awareness campaigns, advertise, speeches, and even sending hard copies of CSR report to the most important external stakeholders (Luo & Bhattacharya, 2006)What resources are needed?New Balance mainly requires human race resources in order to implement its new CSR strategy effectively. It should focus on effective leadership apart from Anne and Jim Davis, who are the CEOs. Therefore, it should invest in searching for new and effective leaders internally or externally, who will support the two CEOs in effectively running the business. The company should also focus on coming up with a CSR department consisting of intellectuals who understand what CSR entails in order to effectively identify risks and opportunities and align the CSR activities with the companys business. According to Margolis, Elfenbein and Walsh (2007), monetary resource are needed in CSR writ of execution. Therefore, New Balance should form a committee, which will strategize on how the company will get the funds required to finance its CSR implementation. What is the Timeline?For any CSR implementation to be successful, it must be time bound (Engardio et al. 2007). The CSR steering team should come up with a timetable clearly showing all the stages of CSR implementation and their time limits. Each stage should be given a time limit and sporadically monitored in order to ensure that it is completed within the allocated time. An effective CSR implementation is done during the shortest time come-at-able to cut down on wastage in terms of human resources and finances and hence save cost. What are the measures of success?New Balance should come with an approach of measuring its CSR implementation performance. Primarily, it should identify the objectives, fun damental to its CSR commitment and come up with performance indicators, which should be used to measure the results of CSR activities. When the objective has been achieved, it means that the CSR is a success while it is a failure when an objective has not been achieved. What are other important items to include?According to Luo and Bhattacharya (2006), a company should ensure that their employees are adequately trained on CSR in order to make its implementation a success. New Balance employees should be properly trained on the importance of CSR and its implementation to ensure it becomes a success. Margolis, Elfenbein and Walsh (2007) point out that in any CSR implementation, there are obstacles such as resistance by some employees and stakeholders. Therefore, it is important that New Balance puts in place mechanisms and strategies of dealing with arguable behavior and resistance to its CSR implementation. ConclusionFrom the analysis, it is clear that New Balance is a company that is devoted to community support and volunteering. Its two CEOs are devoted to ensuring that the company creates a good reputation and markets its brand by embracing CSR. However, various loopholes that have been identified, prevented the company from achieving its CSR objectives and goals. Such loopholes are the lack of an effective leadership body, drop of aligning CSR with the companys business among others. Therefore, despite much involved in community support, the company did not achieve the benefits that come along with CSR such as reputation, good corporate image, and good public relations among others.Implementing an effective CSR will call for New Balance to bring together both human resources and finances. Effective leadership and CSR personnel are needed in order to analyze the various risks and opportunities think to CSR. The company also needs to align its CSR strategy with its business in order to rip all the benefits that come along with it. Every stakeholder, both i nternal and external should be involved in CSR implementation in orderto ensure maximum support and hence make it a success.ReferencesEngardio, P., Capell, K., Carey, J., & Hall, K. 2007. Beyond The unripe Corporation. Retrieved fromhttp//static.twoday.net/foehrenbergkreis/files/bw-january-29-2007-beyond-the-green-corporation.pdf Luo, X., & Bhattacharya, C.T. (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70(4), 118 Margolis,J.D., Elfenbein,H.A, & Walsh, J.P (2007). Does pay to be good? A meta-analysisand redirection of research on corporate social and financial performance. Working Paper, University of California at Berkeley. Sen S., Bhattacharya, C.T., & Korschun, D. (2006). The role of corporate social responsibilityin strengthening multiple stakeholder relationships A field experiment. Journal of the honorary society of Marketing Science, 34(2), 158-166. Veleva V. (2010). New Balance Developing an integrated CSR strategy. Richard Ivey School ofBusiness.