3345 words (cover page, table of contents, headings, appendix, diagrams, charts, tables, group reflection, references and references list are not included)

BUSM2301 Organizational Group Analysis Tuesday 15:00 GROUP REPORT SEM C 2020 TABLE OF CONTENTS Introduction _4 Problem statement Current performance and situation of CSR in mining firm _5 The belief of firm _5 Company structure problem Flow problem: Literature review Concept of CSR CSR in mining and its drivers _8 Methodology _9 Solution development and proposal _14 Discussion and conclusion 16 Appendix _19 References List _22 Group Reflection and CONTRIBUTION _27 Assignment information: Assignment name: Assignment - Group Report RMIT UNIVERSITY VIETNAM SAIGON SOUTH CAMPUS SCHOOL OF BUSINESS AND MANAGEMENT Word count: 3345 words (Cover page, Table of Contents, Headings, Appendix, Diagrams, Charts, Tables, Group Reflection, References and References List are not included) Submission date: 03/01/2020 INTRODUCTION Increasing pressures from shareholders and community are heavily placed on the mining company as it attempts to excellently perform Corporate Social Responsibility (CSR), leading to the need for better organizational structures, especially CSR This paper displays the new structure to address this problem as well as analyzing the strengths and weaknesses of the proposal on how CSR affects the mining company and the society from the subjectivist perspective Better control over various functions is also an urgent need of the mining company since their acquisition of numerous companies leads to a lack of connection between operations and sites It is required to develop common approaches to the management of the sites, the company's purposes and objectives, and its appropriate reactions to environmental and community pressures PROBLEM STATEMENT Current performance and situation of CSR in mining firm Because the government forces them to guarantee corporate responsibility to the community, applying CSR becomes meaningless when they not really consider environmental responsibility Therefore, the approach that the mining company is taking to voluntary sustainability has no consensus of purpose (Cho et al., 2015) It caused controversy among stakeholders as the company focused primarily on making profits and enhancing company’s brand identity Therefore, the established CSR system must be based on real observations from society According to Larsen (2010), CSR cannot be built in a conventional way, it must have social interaction of attitudes, beliefs and purposes In the current situation, the company cannot avoid the punishment of the government and criticism from the society This has a great impact on the operation of the mining company, they have to trade a large amount of money and time to recover (Powell 2015) On the other hand, according to Holme & Watts (1999), marketing can contribute to a sustainable social enterprise The company faces a huge communication problem, creating many barriers Specifically, the company will have a bad reputation forever, it is difficult to recover to its original state They need to prove more to gain trust from the community as well as their concern about the environment (Sushmita 2013) Through this, the treatment system needs more time to identify and respond Furthermore, companies should not always focus on maximizing profits, forgetting about social interaction and their views on the proper use of the CSR system (Kolstad, 2007) The situation is caused by three root problems The belief of firm The mining company accepts the nature that profit cannot go along with CSR (Jasmine & Sameer, 2015) Because it is difficult to generate benefits and is costly, therefore, CSR is unnecessary Moreover, they are facing pressure about the company to behave in socially responsible ways Hence, they noticed the use of CSR as a method to deal with pressure from the government, company shareholders and society These can also be seen as defensive CSR (Sushmita 2013) Company structure problem In general, the company does not have a general approach to how to manage the different organizational functions, namely that they operate separately resulting in a looser corporate structure (Cho et al, 2015) (Muhamad 2008) In addition, the reason for the inability to promote economies of scale comes from the problem of trust that the company is facing (ibid) Since they were not really interested in adopting CSR, the firm decided to let the CSR department operate on its own, leaving it inconsistent in purpose (Spitzer 2010) Figure Company structure – divisional strcuture Flow problem: First and foremost, company obtain and review those of the negative mainstream that need to be settle and as to protect the company images The next step is to take a hold of social media and restrict the media from publishing negative news since bad reputation spreads harm to the company's brand identity The company then script a plan that will be proposed as we approach the shareholders for approval of the budget required As if matters violate the law, the company must approach the government for granted permission, if not strategy will proceed to execution for matter to be settle and recover the company images Figure Company flowchart, CSR department working process In short, the process starts too late when a communication problem occurs resulting in reduced efficiency In particular, the company has to spend too much time and money to face the problem, while the social problems persist Furthermore, the slow operation makes the flow too rigid Because there is no strong bonding, the flow becomes cumbersome and it takes a lot of money for the flow to connect with each other (Cho et al 2015) Even there is a few connections between departments inside CSR agency, as a characteristic of Organized Hypocrisy and Organizational Faỗades, it is not enough to show the CSR effect on the company and local area Hence, company would face an increase in cost due to CSR process without gaining any profit (Piercy 2009) LITERATURE REVIEW This study analyzes whether there is a systematic relationship between CSR performance and the economic performance of mining company Concept of CSR According to Carroll (1998), Corporate Social Responsibility (CSR) is the method that is implemented for the social and environmental liability of the community in a company and business Later in 2006, Perrini stated the responsibility in CSR is for economic growth, social stability, and sustainability of the environment is recognized and a fourth factor is added: philanthropy However, despite many undeniable benefits, some critics have been placed Friedman (1962) asserted that CSR has financial gains only and aims to increase revenues for organizations There is also concern that CSR is not appropriate for social functions (Carroll and Shabana, 2010) Through this idea, CSR has been acknowledged into strategic stances that most organizational applied: Obstructionist, Defensive, Accommodative, and Proactive (Carroll 1979) CSR in mining and its drivers Mining used to be just an operation to exploit a natural resources area until it dried out The business will then be relocated to the next location to follow this process In the early 1980s, the mining companies incorporated environmental practices into their activities under heavy demands (drivers) from the local community (Jenkins and Yakovleva 2006) Researchers have identified drivers in three categories, notably: an approach focused on value, an approach influenced by performance, and a stakeholder approach A value-driven based on self-motivated and relies on external influences An approach to performance depends on the competitive advantages of a business for direct income It also includes the image and credibility of a corporation The stakeholder approach depends fundamentally on the parties involved; with the success of the business, this approach is required to fulfill stakeholder demands (Larsen 2010) Methodology Figure Information systems development paradigm (source: Hirschheim and Klein 1989) The traditional understanding of CSR is appropriate and can be used as an ethical framework for business However, its characteristic sustainability is still controversial, especially when involved in a social perspective (Carroll and Shabana, 2010) The traditional understanding has described CSR is created based on the consensus of the society, the demand for the responsibility of business CSR is understood as its factors of responsibility (economic, social, environment, philanthropy) in business are interacted in order to reach out to optimize business performance but keep sustainability The previous knowledge about CSR has adopted the Functionalism paradigm (Hirschheim and Klein 1989) There is no denying that a corporation should perform its economic obligation The primary aim of an organization is to create and manage sustainable business income through the production and distribution of the goods and services needed by society (Cho 2018) However, this approach is very controversial among stakeholders because it is mainly about the profit of the company, there is no social consideration in this part The incongruence between what company talk, decision, and action toward voluntary sustainability have been highlighted in Cho et al (2015) Another paper of Cho (2009) has claimed that organizations only this to concrete their position and for private interest At this point, the mining company has separated the CSR department out from the company structure, make it become ineffective, instead of integrated it into company structure as in flowchart above Therefore, if viewing CSR in this view, as an objectivist viewer, CSR is established based on the need of company, the need of either sustainability or economically, to adapt with the demand of the society According to Caroll (1979), organizations applied this as a defensive strategy, rejecting broad ethical responsibility by passively complying with legal requirements and remaining legally valid, they acted to protect their self-interest This has led to an unsustainability corporate structure, there are no networking between the departments, each department having their separate function Due to this fact, when a CSR issues happened – which is demand various co-operate between department, the company decision and action will become ineffective This paper will deny the objectivist view and take a stance as a subjectivist to reduce the increasing tension of shareholder activism and community pressure being placed on the company For this point, it is necessary to create a concept model and restructure the company's CSR department Our conceptual model still stays in the integrationist view as before - the reason for the existence of CSR in mining companies On the other hand, the change in the objectivist dimension is necessary To be brief, based on Hirschheim and Klein's (1989) paradigm’s model, the social relativist perspective must be adopted – view from a subjectivist perception After adopting this paradigm, the understanding of CSR will be changed: There's no specific reality, there are only different interpretations Company CSR is not associated with an observable economic fact, but with a transition in traditions-social norms, conventions, societal beliefs, and ideals Our solution – epistemological assumption, demand interaction with stakeholders to redesign a CSR system that is suitable for each mining site The reason is that there is no empirical criterion separating good and bad systems All depends on what the parties understand is relevant – this is the ontological assumption of this paper (Hirschheim and Klein 1989) In practical terms, it is impossible for companies to fully apply a proactive strategy - absolute consideration of their social obligation and active participation in society However, companies can take an accommodative stance - accept some ethical responsibility toward their stakeholders Through some configuration, companies can effectively remove operational problems and suppress stakeholders' dissatisfaction (Carroll 1979) The mining company should work out with stakeholders, accept their perspective to find out their preferred views By then, the CSR system that meets the stakeholders’ view can be considered legitimate From communication, the best CSR system is developed and constantly updated and legitimized through adjustment CSR systems cannot be formulated in a normal way, not without social interaction (Larsen 2010) Regarding problem of company’s core beliefs about the nature that CSR systems could Figure The stakeholder map (Source: Freeman, 1984, p.55) cost more its advantage, building up, a model that qualify the positive relationship between CSR and CFP is utterly possible, in fact The solution for CSR in mining industry would be a model that could Figure Company CSR flowchart, CSR across the company We propose a solution in which for any project launch must follow through the orders First and foremost, apply and execute CSR into business is essential, company practices the task by engage stakeholders for their viewpoint, propose new strategy to shareholder for budget approval or as if their legal matters we must plan approaches to government to settle matters by the law, company also settle incidents in an ethical way not just for the good of the corporation but also for the benefit of the local stakeholders Firm damages to the ecosystems must always on monitor, because environmental surroundings are the priorities demand of local stakeholders, as if the waste is recyclable then the waste should be put in laboratory for research of ways to utilize the resources, however if not recyclable should be planned for elimination for if keep existing will create pollution but more importantly there must be planning to avoid the waste from ever be produce In fact, mine waste storage is mentioned in several research papers such as Geoffrey Blight (2011) or Daniel et al (2019) They realized that mine waste deposits are really storages of low-grade mineral, which may be an existing or potential economic value for other minerals in what is presently waste, or as a construction material, according to Geoffrey Blight (2011) Hence, it is possible to establish a new product line and gain profit when mine waste storage method and waste study is applied into CSR process By these steps, CSP metrics is conducted that is followed by mediating metric, which help in define the relationship between profit and social responsibilities base on the understanding and knowledge from previous stage After the basic relationship is established, CSR activities is considered and monitored Maintain corporate sustainability by strengthen the internal workforce, by conduct CSR activities internally, providing high standard working environment for employees helps boost both employees both physical and mental health Finally, a Sustainability report measuring company performance effectivity and of which damages or benefit exceed the others that the company decide whether to go back to CSR strategy planning This would improve organizational culture and the unity in the mining company since employees work within the departments as a network would build connections and bonds, it helps increase productivity and efficiency DISCUSSION AND CONCLUSION Compare, to the previous flowchart in problem statement part, this flowchart offers a better solution since it presents more connection in mining firm If the previous flowchart is system combined different separate machine that work independently, the new solution generates a new network where connection is highlighted, yet still in an order This Swimlane operate more relationship and tools to deal with a company CSR problem, which is better than a divisional structure (mechanistic) However, each department would show a unique role Thus, when a department fail to commit their task, it could be replaced while a whole process would keep smoothly operate In addition to being a promotional tactic, CSR can also be used as a market share growth strategy (Ruf et al 2001) Mintzberg (2000) suggests that CSR encourages a business to enter new markets or gain competitive advantage (Appendix 5) Conversely, CSR may also be used to overcome the detrimental impact of a corporate product or previous publicity issues In this scenario, CSR would be used to fix the company's bad reputation Barnett (2012) claims that effective management of a company's CSR program will motivate stakeholders "to ignore the past misconduct of firms” It helps in avoiding social punishment and achieve appreciation from stakeholders such as consumers, consumers, vendors, manufacturers, workers, societies and governments In varies area, there is a huge gap in education system leads to unrealistic knowledge between what individuals are being taught and organization requirement These skill shortages create barrier holding back the growth of businesses and society The practices of corporate social responsibility (CSR) propose as a possible solution to improve the circumstances By applying CSR to fit the academic needs of both existing and prospective employees, organizations can resolve the skill shortages and help strengthen employee loyalty and work ethic Moreover, the reputation of the company in labour market is also improved, which makes the company become more attractive to new skillful employees (Camilleri 2017) As a result, to brings real profitability for a company in long-term, a model of CSR should be implemented in variety aspects and perspectives, as mentioned, depended on which industry of the company from the initial stage of each process There are many limitations in any industry with only using two of the four paradigms as the view is not holistic and dynamic The functionalist model is between order and objectivism In the optimal functionalist structure, the strategy is to enhance the capital of the shareholders, not every stakeholder (Hirschheim and Klein, 1989), the key issue of this paradigm is that it views the environment as quantitative, which means that when the structure is in operation, it can be evaluated and measured in order to reach the highest standard of productivity and efficiency, which means that the mining firm can become purely a technical process This perspective provides little voice to those under control, and decisions are being made top down, which can create an unequal perception of the company and its functions Focusing on the social relativism aspect of the mining industry approach, this viewpoint is much more fluid than the functionalist paradigm, however positive and poor they might not be, and management decides what they consider to be valid Thus, a holistic view of all four paradigms will have the best result for the business due to a multiple viewpoint approach, which would not restrict them to only two modes of thought and possibly open their doors to creative avenues Moving forward the client should consider including the neohumanist perspective, this perspective would allow the top management to understand and gain insider knowledge on the business, this knowledge will increase their ability to make informed decisions regarding processes, culture and unity, while the employees would have more space to show out their creativity and ability As a result, the company performance is improved as a result Radical structuralism can also be seen as another example, not so much for implementation, but rather as studying and seeing that this structure under which workers are manipulated would not be in accordance with corporate priorities This would especially help in highlight the hidden problem of the structure in company or even social with criticism viewpoint Within, radical the issue of diversity perspectives could be seen clearly, which is a limitation of this solution Without radical paradigm, diversity viewpoint is theory more than application because the incomplete of the information and understanding collection process of social relativism It is important that all these four paradigms are taken into account when attempting to manage an enterprise It is not about perspectives themselves, but rather how they overlap and incorporate in order to give companies the best possible result in all fields of practice, since something that's a challenge is better looked at holistically than only from a few aspects, as it allows for suggestions, recommendations or reviews In contrast, there are several limitations that could not be solved even if four paradigms are applied Firstly, in the study about four metrics of Peloza, the specific method to conduct is not mentioned This is just an initial research paper and would require further study to draw out a method for these metrics Secondly, CSR system would be a long-term investment for company to gain profit, yet this paper is not able to mention about the function to monitoring the timeframe Thirdly, applying this matrix structure immediately would cause a mess for the mining company Because this would cost more spending for Human Resource department to maintain the quality of communication due to the complex of the flowcharts, compare to the previous, as well as need more time for employees to change their working environment The recommendation for this is that the company should accept the initial decrease in profit, for short-term, and apply the flowchart step by step to fulfill the stakeholders’ perspectives day by day, for long-term It can be seen that the paper would be an open discussion that need further study to complete the flowchart as well as the process to apply it into the mining company To conclude, the report still proposes suitable Swimlane for illustrating flowchart with purposeful solution, help corporate mechanical ways of operating in which way to functional into be more social relative operating method as well as draw out a viewpoint of relationship between CSR and company development, which is the base model for business in mining industry APPENDIX Appendix 1: Appendix 2: Appendix 3: Appendix 4: Appendix 5: Competitive advantages in the market and Marketing advantages Moreover, since there is increasing number of consumers now trust CSR-attributed goods (Siegel and Vitaliano, 2007), when a brand certifies its product as 'green,' it will gain a marketing advantage and more consumers would be more likely to purchase their goods This is because consumers believe that the value of the 'eco certification' commodity is greater than others according to Porter and Kramer (2006) More than building a successful image, firms can be attracted to participate on CSR to gain free media attention and long-term public relations exposure (Vaaland, Heide & Kell 2009), in the situation where product advertisement is becoming extremely expensive to catch the customers' attraction Kotler and Lee also agree that this would help for cost saving directly (2010) REFERENCES LIST 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Assignment - Group Report RMIT UNIVERSITY VIETNAM SAIGON SOUTH CAMPUS SCHOOL OF BUSINESS AND MANAGEMENT Word count: 3345 words (Cover page, Table of Contents, Headings, Appendix, Diagrams, Charts, Tables,. .. Charts, Tables, Group Reflection, References and References List are not included) Submission date: 03/01/2020 INTRODUCTION Increasing pressures from shareholders and community are heavily placed... stage of each process There are many limitations in any industry with only using two of the four paradigms as the view is not holistic and dynamic The functionalist model is between order and objectivism