There is great relation between the concept of environmental responsibilities and CRS. This is attributed to the legal, economic and social environments, which require ethics program mainly for protecting the organization and its stake holders, clients, staff, and others. In this paper I would discuss how this has happened in Finland.
There has been evaluation of corporate environmental management in Finland. According to Habisch (2005), following the cold climate, industrial structure induced energy demands, and the vast renewable natural resources, it has made economic sense for the industry in Finland to use domestic fuels and raw materials in a sustainable fashion and to develop energy-efficient production technologies (p. 19). However, it is important to acknowledge that, it was not an easy task to establish what attributed adoption of environmental responsibilities by Finnish companies.
Managers should ensure balance between the needs of the organization and those of its stakeholders. In modern business, there has been recognizable effort of establishing an organizational culture that enhances ethical business practices even while advancing competence of their companies in the market place. Heath (2005) say organization builds relationships with stakeholders; it advances the public interest and helps to elevate the quality community (p. 553).
For an organization to manage its stakeholders effectively there is a need of leader to identify the information required by various stakeholders. Leveraging between the information required by the stakeholders and the needs of the organization, demands assessment of the communication requirement of each stakeholder group. According to Rosam and Peddle (2004), the management review provides the organization with the opportunity to look at the performance of the whole corporate social responsibility (CSR) management (p. 26).
Various organizations has various definition of CSR, however there is considerable common ground among them. Generally, CSR can be defined as the process through which companies manage business operations to acquire positive impact on society. There are two factors, which guide in CSR, first is the eminence of their management in terms of people and methods. Second, are the nature of, and the level of effect on society in the different areas.
According to Hond, Bakker, and Neergaard (2007), there are different functions of the system and the interdependencies between the various actors and market composing the CSR industry (p. 154). Technical system involves evaluating and calculating CSR performance by combining essential functionalities. These functionalities includes; defining the nature and the scope of CSR, as well as assessing the performance.
It is important that the company sets its CSR goals and decision making with its overall goals and strategies, in order to put CSR considerations into account in corporate decision making from customer perspective, which turns to be natural. Some companies do centralize CSR decision-making, whereas others do a decentralized one. There are others still, which prefers a hybrid, according to their operating feature and management style. Therefore, it is clear that there is no specific way of organizing a firm's CSR decision making.
Bearing in mind that CSR is basically concerned with openness, accountability and performance, it is vital for the CSR decision-making structure to be a primary component of the firm's governance activities and to be applicable. It is also necessary to be accountable throughout the organization. Structuring a CSR decision-making, knowing the appropriate level of internal verification required is important.
In conclusion, it is obvious that every company is unique and will approach CSR implementation in unique manner. However there are preferred steps which directs in enforcing the CSR commitments. This procedure entails; Developing an integrated CSR structure, Coming up with a CSR business plan, Setting the evaluation targets and performance measure, involving all the stakeholders of CSR, designing the mechanism of dealing with issues arising and lastly creating internal and external communications plans.