Assessment Task 2
Social responsibility, inclusive of ethical practices is very crucial to the success of any given business. Stakeholders and consumers are always anticipating that firms also operate based on addressing environment and social issues while providing genuine products and services whenever required. Consumers of products from Vivo Energy PLC are gradually learning about the relevance of CSR and are continuously acquiring its products because it has demonstrated ethical operations. This is attracting more customers who share the same virtues, thereby improving business sustainability.
CSR has improved the public image of Vivo Energy PLC because of the easy assessment of its customers to make decisions on the products they need to purchase. Its wide range of products appears favourable to the consumers because of the firm’s economical aspect of employing local people and serving local businesses. This has helped to create both economic and social benefits by interacting with them and earning their trust and respect. For instance, it has chosen to invest in education, environment and road safety in the Kenyan community.
On account of its commitment to ethical practices in the community, the information being spread about its products and services is increasingly growing, leading to more awareness. This is important in creating market and assists to gain an advantage over other competitors. Additionally, Vivo is standing out from rivals in the petroleum industry and gradually establishing itself as a company committed to taking one step ahead.
One of the best places for a business to start investing in sustainability is to use it as a way to minimize costs. Self-sustaining strategies of reaching out to customers, such as social media and websites have assisted the firm to increase customer engagement as they address stories of their efforts. Sites and pages such as Facebook and Twitter have been utilized to show its efforts too, thereby giving it coverage. Multiple customers to as far as other continents have been able to follow and therefore establishing engagement with its operation and brand. This strategy is efficient and very affordable for both Vivo and its customers, furthermore, it is environment friendly.
Vivo has ensured that its employees obtain significant information about CSR and that they have the requisite customer engagement skills by training and ensuring they attend relevant staff workshops on ethics. This ensured that its employees enjoy working for it, contributing to company pride as it demonstrates a positive public image by creating partnerships with companies such as Palmhouse Foundation in 2014 which helped to support needy students to complete their secondary education and mentor them in life. Vivo also partnered with Nature Kenya to promote conservation of nature in Eastern Africa and encouraging the participation of the local communities to participate in the advocation of policies which favour biodiversity conservation and other environmental projects.
Employees of Vivo Energy PLC have been embracing CSR as it brings a wide range of benefits. Its workplace is a more optimistic and efficient place to work, and by profound things like volunteering, it has fostered career progression and quality and better relationships between them. They have shown a sense of identity and intentions to work for a longer time with the firm including commitment. Applicants and prospective employees are finding Vivo a very lucrative and attractive firm to work with because it is considered to be of high impact, therefore attracting top talent over other competitors. Its employees are more engaged, with outstanding performance because of the firm’s involvement in the implementation of CSR. It keeps its workers more actively involved by celebrating and acknowledging their contributions at work, additionally, they can also be motivated to learn new and improved ways of doing their jobs. Vivo aims to undertake further CSR activities as it strives to remain important to new generations and to continue assisting communities in need of international help as it increases its sales and productivity, attracts expertise, creates more assets and strengthens foreign relations.
Applying Archie Carroll’s CSR Model to Vivo Energy PLC.
Vivo Energy PLC is always seeking to achieve and make a positive and enduring improvement to the communities in which it works. In its community investment programme, it has been employing and serving local individuals and businesses to foster long-term economic and social benefits for the communities as it earns their trust and respect. It has a great reputation of marketing and distribution of petroleum products as well as storage, distribution, supply and retailing of liquefied petroleum gas, fuels and lubricants globally.
Economic sustainability has always been an essential factor for Vivo, which contributes to its existence. Through motivating its shareholders and owners to make money, it is putting into motion what society requires of it, allowing them to make more investments, to generate more capital and to strive to progress. Society views it as a reliable organization that will manufacture and sell the desired petroleum products, in turn taking profits that will benefit all the business stakeholders and to a bigger picture get a virtual recognition from global economic systems.
Legally, it has been operating and functioning underground rules and regulations and also through fair business practices. Providing quality petroleum products and employing competent staff has demonstrated that it is conducting itself as a law-abiding corporation, performing in a manner that is per Policy and Law Standards, in compliance with regulations of the state, fulfilling all its moral responsibilities to community stakeholders. It’s corporate leaders, managers and other staff adhere to the crucial fundamental value of profitability and profit margin as indicators of organizational growth.
As laws exist and are necessary, society maintains that they are not adequate and that they do not fulfil their normative standards. By this, Vivo has been conducting its operations ethically by embracing norms, practices and standards expected by the society. It has demonstrated this by preventing the compromising of ethical norms for the sake of their goal achievements, being consistent with the existing norms of society and also recognizing that business integrity and ethical behavior are beyond compliance with the existing laws and regulations (Carroll 1991).
Vivo is constantly ensuring that internally and externally human rights practice and policy are upheld as it keeps their reputation on the positive. Additionally, it is proactively tackling previously identified risks and the new ones in this sector as well as raising awareness, encouraging involvement and identifying potential implications of initiatives put in place for the society. It has been putting into place tools for use in training its employees on awareness, operation advancements, risk assessment and management in the area of community development to foster good practice. Furthermore, it is gradually putting measures in place to combat corruption, treating all persons equitably without any discrimination, and involving indigenous people in making decisions on their local projects.
Corporate philanthropy includes all facets of the business grants to society. It encourages a charitable undertaking and voluntary activities. Vivo has been guided by the desire to participate in such even though they are not mandated by law, but because it is right for society. Service and product donations, volunteerism by employees and the management, as well as monetary gifts are some of the perceived philanthropic responsibilities. For instance, in 2014 Vivo Energy Uganda held a road safety competition that involved 12 primary schools, this was aimed at supporting its community investment strategy on Road Safety Programme formerly launched. It helps to increase awareness on road safety among children by changing their behavior and attitude on the road, thereby instilling a tradition of road safety in the future generation of Uganda.