EXPLORING CORPORATE SOCIAL RESPONSIBILITY (CSR) IN THE SOUTH AFRICAN SHIPPING INDUSTRY: FOCUSING ON PRIVATE COMPANIES’ SOCIAL AND ECONOMIC DIMENSIONS OF CORPORATE SOCIAL RESPONSIBILITY

 

What are Shipping Companies Doing to Contribute to Economic Sustainable Development in Areas Where They Conduct Business

Since businesses often aim to maximize profits rather than pursue shared interests,
CSR and business are frequently perceived as being at odds with one another.
 

Nevertheless, companies form part of society and cannot function against the
convictions of the community. Businesses need to achieve sustainable economic
growth and account for the financial impact on stakeholders (Sorsa, 2010 cited in
Kunnaala et al., 2013). CSR entails running a business in such manner that it can be
economically and socially beneficial, ethical and legally obedient (Carroll, 1999), a

feat that is complex when operating in numerous different circumstances with
frequently conflicting views of the role of business in society (Devinney, 2009).

The term "triple P," which stands for "People, Planet, Profit," was developed in the
past to emphasize the necessity for managers to simultaneously focus on the social,
environmental, and economic aspects of corporate activity in order to contribute to the
(sustainable) future of societies around the world. However, the effect of multinational
enterprises on sustainable development is largely unknown and requires further
research (Kolk and Van Tulder, 2010). Depending on the state of the economy, a
company's CSR strategy may change in terms of its financial status. For instance,
during a depression versus a period of rapid economic expansion, the attitudes of
businesses toward the economy are considerably different. When businesses are
financially stable and there are no urgent matters requiring financial consideration,
they tend to engage in CSR activities (Kujala, 2009 cited in Kunnaala et al., 2013). 

The economic aspect of CSR embraces any aspect connected to the supply chain of
organisations, customer management, consumers or users and the development of
economic activities. Any business must have a responsible supply chain since poor
management has a negative effect on the company’s reputation (Takahashi, 2021).
 

When it comes to CSR, the economic benefit is taken into account along with the
environmental and social benefits that the business obtains from complying with rules
(Elkington, 1994 cited in Kunnaala et al., 2013). CSR is seen as an essential business
practice for maintaining and expanding the company. One of the main advantages for
engaging in CSR activities is the prospect of making significant cost savings through
proactive decision-making and preventing undesirable societal repercussions (Grewal
& Darlow, 2007).

The following are the components of the economic dimension: achieving the highest
profits feasible; meeting the expectations of the shareholders; gaining a competitive
advantage in the industry; ensuring customer loyalty and satisfaction; and promoting

their goods/services through costly advertising promotions (Gonzalez-Rodriguez et
al., 2015). Stakeholders expect decent returns on their investments, workers who want
secure and decent jobs, customers who expect high-quality goods at reasonable prices,
and so forth. By definition, this is the purpose for which businesses are established in
society, so that a company's primary obligation is to be an operational economic entity
and to remain operational. All subsequent duties rest on this (ideally) strong
foundation, which forms the first layer of CSR (Hennigfield et al., 2012). Of relevance
in this case is the guaranteed and decent jobs for members of the community in which
the business operates.

Shipping companies are advised to focus on accomplishing long-term gains instead of
quick short-term profits which are easily achievable by transgressing laws and
regulations. The reputation of the business is influenced by the company's financial
responsibility and the quality of the services it offers. Shipowners must demonstrate
to customers and other stakeholders that their ships are safe, ecologically friendly, and
that their company's operations have no detrimental consequences on society in order
to safeguard their brand (Grewal & Darlow, 2007). Carroll (1991) asserts that all
organizations must, therefore, fulfill their financial obligations. 

Source:

WORLD MARITIME UNIVERSITY
Malmö, Sweden


EXPLORING CORPORATE SOCIAL RESPONSIBILITY (CSR) IN
THE SOUTH AFRICAN SHIPPING INDUSTRY:
FOCUSING ON PRIVATE COMPANIES’ SOCIAL AND
ECONOMIC DIMENSIONS OF CORPORATE SOCIAL
RESPONSIBILITY


A dissertation submitted to the World Maritime University in partial
fulfilment of the requirements for the award of the degree of


STUDENT’S NAME
SIZWE SANDILE DLAMINI


Student’s Country
South Africa


MASTER OF SCIENCE
in
MARITIME AFFAIRS
(MARITIME LAW AND POLICY)


Year of graduation
2022


Copyright Sizwe Sandile Dlamini, 2022 

Mozambique Doing Business South Africa

2025

Link : https://commons.wmu.se/cgi/viewcontent.cgi?article=3135&context=all_dissertations

 

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