Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is a strategy that businesses use to support the sustainability of the economy and environment. By offering free services, CSR seeks to enhance both the organization that is engaging in the activity's public image and the welfare of society as a whole. Media attention is increased by taking part in corporate social responsibility activities. Businesses that give back to society are more likely to recruit talented and dedicated personnel. Making a positive social impact draws in investors and keeps clients. The Target Corporation and Bank of America are among the businesses I selected. Target Corporation is discount store retailer that operates in the trading industry while Bank of America is a multinational financial institution in the banking industry.

Target engages in various CSR practices to benefit the surrounding communities as well as stakeholders of the company. Target engages in volunteer projects that are aimed at preserving the environment and assisting members of the society in the elimination of poverty. The practices of the company are aligned with sustainable development goals such as affordable and clean energy and reduction of pollution. To preserve the environment, Target has added solar rooftop panels to 35 stores and distribution centers. The company has invested in an off-site renewable energy plant to complement their onside renewable energy sources. In 2016, Target signed a Virtual Power Purchase agreement with and Stephen's Wind Farm (Silberman 8). The Wind Farm produces 40 MW electric power which is enough to power 60 company stores in the State of Texas. The company has unveiled hydrofluorocarbon (HFC) free refrigerants in its food distribution centers. Currently, 585 buildings have been fitted with HFC-free refrigerators. Target has achieved a 13.7 percent reduction in water usage in its stores. To ensure proper water usage, the company uses efficient restroom fixtures and constantly innovates efficient irrigation strategies with the aim of improving asset efficiency. Target has invested in safer alternatives for some chemicals which may be hazardous to users and the environment (Silberman 14). For instance, the company is co-sponsoring the GC3 Preservatives Challenge to support more sustainable solutions for preservation of beauty products.

The Bank of America (BoA) has invested in a $125 billion projects to address climate change. The project aims at supporting customers in promoting sustainable transport system, energy efficiency, and use of clean energy. The investment finances the use of low-carbon products and supports sustainable business practices so as to address the aspect of climate change. The bank benefits the society by giving employees with a newly born child a paid parental leave of 16 weeks. The bank places a high priority to the recruitment of employees from a diverse background. Individuals from neighboring regions are given a priority during recruitment exercises. The Bank of America values people and has increased the minimum hourly wage for non-commissioned U.S. workers to $15 per hour. Besides, the bank has engaged in many philanthropic investments worth $2 billion to benefit the society, support education scholarship, and assist the needy in the society (Finucane 1). Also, bank investments support economic mobility for employees as well as needy community members. According to Fortune, the bank was honored for driving social change and assisting members of the society. The Bank of America ranked number 16 on Fortune's ‘Change the World' list. The bank has committed to reduce location-based gas emissions by 50 percent, reduce energy usage by 40 percent, reduce water usage by 45 percent, and reduce waste to landfill by 35 percent. The bank ensures that products from its premises which are released to the environment do not cause environmental degradation or affect the health of community members.

Targets stakeholders include investors, Civil Society Organization, vendors, employees, guests, and policy influencers (Silberman 6). The stakeholders can be identified by the company's dedication to ensure their satisfaction (Beard and Hornik 6). Target Corporation responds to the various issues raised by stakeholders. Members of the surroundings seem to be the most important stakeholders for Target Corporation due to the huge financial investment towards them. The stakeholders of the Bank of America include employees, investors, Policymakers, nonprofit organizations driving climate change campaign, borrowers, and community development institutions. Employees and clients seem to the most important stakeholders for the bank due to much attention towards them.

The Target Corporation has not identified people with disabilities who are important stakeholders. The Corporation does not seem to place focus on the group since no monetary allocation has been done. The Bank of America too has not focused on mentally handicapped people or employees maimed in the line of duty. The effect of Targets CSR strategies addresses the various needs of stakeholder groups. Investors benefit through income returns when company public image is enhanced by participation in CSR activities. Civil Society Organizations' goals are achieved when Target Corporation reduces the amount of waste and harmful gases emitted into the environment. Employees get fair wages and work benefits. Policymakers benefit through Company's remission of taxes and the use of products that support environmental sustainability. CSR activities of Bank of America affect stakeholders in several ways. Employees are paid good salaries and given medical/ house allowances. Clients of the bank get efficient services and borrowers attain a loan through fair credit terms. Members of the society benefit from scholarships and community development projects initiated by the bank (Finucane 8).

The strength of Targets CSR strategy is the involvement many stakeholders who come from different spheres of life. The weakness of the strategy is a failure to include the disabled people as one of the stakeholders. The strength of Bank of America CSR strategy is the commitment towards supporting sustainable development. The weakness is the few number of stakeholder groups involved and failure to include a strategy to support workers who have been injured in the line of duty.

There are various alternatives that I would suggest for improvement of CSR practices for both Target and Bank of America. Target should start investing in the processing of wastewater for reuse, convert their garbage to manure to save the environment, and plant more trees for environmental preservation. The Bank of America should include people with disabilities in their CSR activities, drill boreholes to utilize underground water storage sources, and partner with more stakeholders to support environmental sustainability.

The CSR strategies for both companies are similar in that they are geared towards ensuring environmental sustainability. CSR practices for the companies support education for the needy in the society, use of clean energy, conservation of water, and economic sustainability. The companies aim at improving the living standards of its employees through better working conditions and substantial wages. However, CSR strategies for Target differ from those of Bank of America. Target's CSR practices are geared towards giving back to the society while those of Bank of America focuses on improving terms of employment for its employees.



Works Cited

Beard, Alison, and Richard Hornik. "It's hard to be good." Harvard Business Review 89.11 (2011): 1- 9

Finucane, A. Bank of America 2016 ESG Summary Report. Summary Report. Charlete: Bank of America , (2016): 1-20.

Silberman, J. Target 2016 Corporate Social Responsibility Report . Full Report. Minneapolis: Target, 2016. Print.