Question1:
In this part, I will discuss the importance of the management at Aramex and its acts on their conviction regarding the impacts of the company on outside interests. Then, I will reflect on the theoretical conceptualization of strategic CSR that can be applied to Aramex taking into consideration the current positioning.
Aramex, a leading provider in the logistics and transportation solutions sector, is a leader in the region in terms of internalizing and institutionalizing strategic CSR and sustainability. Aramex seeks to enable and facilitate regional and global trade and commerce and helps local and global companies connect with one another. It builds on a flexible business model and high investment in people and technology. It is
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Ghandour believed that corporate culture was particularly important in attracting, managing, motivating and retaining talent. Aramex’s corporate culture reflected the values of its leaders, who consistently attempted to nurture and demonstrate empowerment, respect, and innovation. Instilling and internalizing these values was an arduous process of continuous education, training and reinforcement. The importance of organization corporate culture appear in the improving the performance and the workflow in different areas such as identity, competition, reputation, quality, productivity, loyalty, unity and employee retention. Sustainability and social engagement are an integral part of Aramex' corporate culture and day to day business. Management at Aramex is driven by the conviction that social and business benefits are not mutually exclusive, but rather reinforce each other. The company’s health and growth is seen as dependent on the well-being of society at large and on the communities in which it operates. CSR and sustainability are viewed as necessary to the company’s success. A shift of focus from share value to shared values is central to Aramex’s position on CSR and
The existence of CSR performances guarantee the interest of stakeholders, which involving investors, sponsors, employees, consumers and suppliers. More specifically, for inner management, the workers can be treated respectfully and received well treatment. For example, the workers should be ethically treated when they make a contribution to the performance of organization. Which means the workers not only will improve the enthusiasm to the work, but also will hold the same attitude to handle their works and customers when they receive and be treated equally and ethically in the working environment. Consequently, the employees will make more profits by working in a comfortable workplace. Moreover, the performance of organization will be promoted dramatically by workers’ support.
Rather, they claim that the majority of companies practice more of a flexible and comprehensive version of CSR that extends from “pure philanthropy to environmental sustainability to the active pursuit of shared value” (42), adding that the majority of successfully managed businesses are “less interested in totally integrating CSR with their
This recent reality, combined with globalization, is forcing companies to forge new kinds of relationships with buyers and countries. The financial valuation of companies are taking ever greater account of intangible elements, such as brands, patents and the company’s general image, with companies being bound to take account of these things in an effort to satisfy their shareholders. Environmental protection has become a highly motivating factor, and companies are being pressed to identify stakeholders with whom to team up. With brand value and reputation increasingly being seen as one of a company’s most valuable assets, CSR is now seen as building loyalty and trust amongst shareholders, employees and customers ( Tssa, (n.d.)).
In the last period, the Corporate Social Responsibility indicators have drastically dropped from 38.5 to 35.5. The reason behind this poor performance could be considered by the wrong decisions making in order to improve WRSX's social profile after the corruption scandal involving the company CEO Raphael Roux. Even though, in order to improve their social responsible profile, a profiting from sustainability agenda was chosen. WRSX is willing to create business ethics by following the current business environment which suggests that companies are willing to cooperate with other companies with clear sustainability policy. The advantage of this is to attract more knowledgeable employees, which on the other hand increase staff costs (184.6) but also increased client attraction and retention (55.6).
CSR is entwined in the strategic planning process of many multinational organizations. The reasons behind social, human and environmental responsibility whether driven by ulterior motives, enlightened self-interest, or interests beyond the enterprise, is subjected to much debate.
To correctly address the problems facing Universal, an examination of the current business culture within the company is necessary. Business culture refers to cultural differences, and expectations of the way companies conduct business according to the cultural values associated with a company. The problem facing Universal is a lack of a unified culture. With an overemphasis on collaboration, but lacking in directional leadership; previously, the company has relied on acquiring new businesses during times of expansion. A lack of a unified culture, however, has led to lengthy debates and discussion, which has currently placed Universal at a competitive disadvantage. Presumably, a lack of a unified culture and the overemphasis on collaboration has become a culture within itself for Universal. Culture should at least be implicitly defined within an organization because it provides a method for how to problem solve as well as prioritize goals (Dyer, 2015). For Universal, the lack of culture has created disagreements and delays, and both of these are intolerable in the current situation Universal faces.
It is a viable alternative to apply CSR in Corporate and management strategies to outclass competing companies. An organization by carrying out its ethical principles and convictions in their activities and propagating them via organizational network influences the relationship with shareholders, clients and employees. The application of CSR can lead to social benefits and legitimacy for the firm since it can consider itself as a coalition in which the different stakeholders participate to gain their own benefit. (Freeman, 1984).
This is similar to the model of an Iceberg where the Formal systems lying visible above involves the Roles, processes and tools used by the organisation and the more informal systems, like culture, lie unnoticed in the water. These unnoticed elements involve values, norms, behaviours and a number of components which make up the companies culture. To create a culture of excellence, I believe that the underlying tones and culture of the organisation should be understood thoroughly. This can help assess where problems lie and find the appropriate change principle to apply in order to affect the culture.
Schein (2009) suggested that an organization’s culture develops to help it to cope with its
A strong infrastructure has provided the firm with a luxury to extend its portfolio to offer effective Supply Chain and logistics solutions. “The company pursues sustainable business practices worldwide through operational efficiency, fleet advances, facility engineering projects, and conservation-enabling
Based on Ansoff's Matrix Ghandour generate altrantive strategic direction of the Aramex(Richardson and Evans, 2007). Ghandour integrated sustainability in the DNA of Aramex. Ghandour starting him self in training and workshop projected sustainability a part of Aramex culture. 12,088 volunteering Hours of community service from Aramex employees had been completed.. Ghandour establish effective communication through team meeting, decentralized and horizontal business model and management structure, Ghandour to prove that the employee is main key of successful he empowerment front line employees to make decision to maintain the company operation as aresult of this trust, employees take the responsibility and they contribute directly to inverse the company profit (Johnson, et al;
Question 2: Reflecting to question two in the tutor marked assignment case study, which is relate to the best practices in strategic CSR and sustainability from Aramex and discuss its approach to sustainability that give as a good lessons to learn and educate our self. Also talking about the role of leadership that led to financial and social profit. Gandour molded the CSR strategies in the business to serve and sustainable his company and society. However, talking about the starting of strategic CSR in headquarter and spreader to all branches and subsidiaries in the world by knowing the real practices of maintained and harmonized this CSR strategies. Also identify all stakeholders and there important issues in details as best practices of
The Company firmly believes that CSR is primarily, the responsibility of the Company in relation to the impact of its decisions and activities on the society and also the Environment, through a transparent and ethical behavior which is:
In order to better understand the relationship between CSR and investor relations, Essi Lipponen illustrated the fact that “companies need to differentiate themselves from other companies and communicate their
Social progress, economic development/production and environmental preservation are the three fundamental keys to sustainable development. While there are various definitions on CSR, this report will outline what is meant by the term “CSR” and how it is connected to the strategic purpose of an organisation. It will also critically asses the results of CSR in reference to various stakeholder expectation’s looking at both good and bad