Corporate Social Responsibility- Ethics and the Future
One company that is on top of the corporate social responsibility game, like TOMS Shoes, is Adidas. Adidas is a German multinational corporation that designs n manufactures shoes, clothing, and other accessories. Adidas is the biggest sportswear maker in Europe and the second biggest in the world after Nike. Adidas has been in business for many decades now, and one of the corporate strategies that has sustained it is its corporate social responsibility policy (Adidas Group, 2020). There are similarities and differences between Adidas’s and TOMS Shoe’s approaches to corporate social responsibility. One of the similarities between the two companies is that people are at the heart of both Adidas and TOMS shoes. Adidas aims to manufacture sportswear that enables people to participate in sports activities that make them happy and healthy (Shang-ching, 2011). The sportswear that Adidas manufactures is comfortable in that the wearers feel comfortable and happy as they participate in the sporting activates.
TOMS shoe also aims at making the less fortunate in society to be happy by giving them shoes. Toms donates free shows to the less fortunate in society to make them happy and comfortable (Naeini et al., 2015). The second similarity in CSR between the two companies is that they take care of their employees well. Adidas supports its employees as agents of change in the communities where they work and live (Adidas Group, 2020). The work conditions in both Adidas and TOMS Shoe are favorable for the employees; no wonder Adidas has been in business for many years, and TOMS has been growing exponentially since it was founded.
The corporate social responsibility approach for Adidas and TOMS Shoe Company also differs in many ways. First, Toms is partially a profit-making organization because it donates half of its shoes and sells half. In other words, TOMS Shoe is a philanthropic company but still manages to make a profit (Naeini et al., 2015). Its CSR is to donate pairs of shows to the less fortunate people in the societies. Adidas, on the other hand, is purely a profit-making organization. Unlike Toms, which freely donates the shoes, Adidas sells all its products at competitive prices (Adidas Group, 2020). This means that the company manufactures high-quality products but sells them at a lower price, much lower than those of competitors such as Nike, Puma, and Reebok.
In other words, the company extends its CSR to consumers by enabling them to purchase their favorite products at a cheaper price. Toms Shoe donates half of its shoes but sells half at a higher price to recover the costs and make some profits. Thus, Adidas focuses on helping consumers get the products at a lower price, while Toms Shoe focuses on helping the less fortunate in society with pairs of shoes. The second difference is that Adidas’ CSR focuses on environmental sustainability by addressing water efficiency, sustainable materials, and the reduction of energy consumption and the use of clean energy. On the other hand, Tom Shoe’s CSR focuses on people; the central purpose of its CSR is to help the needy with shoes so that they can live a dignified life like other people in society.
Some of the corporate social responsibility activities that Adidas implements are: first, Adidas is committed to water conservation practices. The company understands that water is both an essential resource and an increasingly threatened resource (Port, 2020). To enhance sustainability, the company strives to operate sustainably through water conservation. The company has set strong targets for its suppliers to reduce water consumption in their production (Shang-ching, 2011). Water conservation is part of corporate social responsibility, which enhances sustainability.
The second way in which Adidas is practicing CSR through sustainability is through efficient use of energy. The company had targeted to reduce energy consumption by 20% by the year 2020; it achieved this goal one year before the deadline. It also resorts to renewable energy, which is sustainable in the long run (Port, 2020). The company operates sustainably by cautiously handling chemicals. The company works collaboratively with chemical exports, environmental organizations, and industry federations to upgrade its end-to-end chemical reduction approach (Adidas Group, 2020). Another CSR activity that Adidas is involved in is displaying fair labor practices, fair employee compensation, and safe workplace conditions.
Successful organizations must indeed have CSR values because most of the known successful business organizations practice corporate social responsibility. It is not a must for a business to practice CSR, but it is ethical to do so. CSR is all about being sensitive to the effects of business operations on the environment and the people in the community (Shang-ching, 2011). No one can force a business organization to engage in corporate social responsibility activities, but it is a necessary corporate ethic that a business should operate sustainably.
Many benefits accrue to organizations that engage in corporate social responsibility. The contemporary business organization’s success is closely linked to CSR activities, and thus, there is no organization in the modern days that can operate successfully without engaging in CSR. Some of the world’s best-performing companies, such as Lego Group, Walt Disney, Microsoft, and Rolex, have the best reputation for corporate social responsibility (Concalves, 2019). This is clear proof that business organizations that value CSR stay on top of the game since they enjoy the benefits of this practice. Adidas has been in business for a long time, and one of the secrets behind its survival is its CSR practice. CSR in Adidas is no longer a strategy, but it is part of its culture and value; this is why the company has managed to overcome the test of time.
References
Adidas group. (2020). Sustainability: General Approach. Retrieved from https://www.adidas-group.com/en/sustainability/managing-sustainability/general-approach
Concalves, A. (2019). The Top 100 Companies With The Best CSR (Corporate Social Responsibility) Reputation. Retrieved from https://youmatter.world/en/top-100-companies-best-csr-reputation2019-28108
Naeini, A., et al. (2015). Case Study: How TOMS Shoes made a cause the center of its activities. Retrieved from https://www.businesstoday.in/magazine/lbs-case-study/story/toms-shoes-shoes-for-free-cause-marketing-strategy-case-study-49364-2015-05-22
Port, S. (2020). The Adidas Sustainability Story – Leading the Change. Retrieved from https://www.gameplan-a.com/2020/06/the-adidas-sustainability-story-leading-the-change/
Shang-ching, H. (2011). Adidas Corporate Social Responsibility. Retrieved from https://gps.ucsd.edu/_files/faculty/gourevitch/gourevitch_cs_huang-
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Question 
Assignment Overview
Business Ethics are moral standards of conduct expected of a business by society. Social Responsibility involves the philosophies, policies, procedures, and actions that have the primary goal of enhancing society. Let us apply the concepts.
Case Assignment
Read Case: TOMS Shoes describes a unique business model combining for-profit and nonprofit philosophies into a corporate social responsibility model.
Corporate Social Responsibility- Ethics and the Future
Naeini, A.; Dutt, A.; Angus, J. et al. (June 7, 2015). A shoe for a shoe and a smile. Business Today. Retrieved from https://www.businesstoday.in/magazine/lbs-case-study/toms-shoes-shoes-for-free-cause-marketing-strategy-case-study/story/219444.html
Address the following in a 3-page academic essay that demonstrates your critical-thinking skills. It should be written for an audience of business owners. As an ethics expert working for a national ethics association, you have been asked to address the following:
Research another organization that is also high on corporate social responsibility. Compare and contrast their CSR approach with the CSR approach of TOMS Shoes.
What actions of organizations fall under the umbrella of “corporate social responsibility”? Give three examples of CSR activities beyond what you have learned from TOMS and the organization you discussed in this assignment.
Is it expected that successful organizations also have a CSR component in their values? Discuss by giving two additional employer examples.
This assignment should include a third-person voice, in-text citations, and a references list. It should be evident that you followed some of the basics of APA formatting. Write a well-integrated paper with a strong introduction and conclusion, and use a few section headings (e.g., do not simply follow a Q & A format).
Bring in viewpoints on the subject matter (authors or speakers) to validate and support your writing. Utilize at least 3 sources that are not included as background readings in this course and are new to you. These sources, for example, can be found by searching the Trident Online Library databases (such as Academic Search Complete, Business Source Complete, Skillsoft Books 24×7, and/or ProQuest Central).