In a nut-shell, Pace leisurewear ltd need to answer two aspects of their operations: The quality of their management – both in terms of people and processes The nature of, and quantity of their impact on society in the various areas. To begin with they could reduce their workforce, try to recruit and retain talented workers, but at the same time remain competitive. Hence, by recruiting fewer staff could reduce their overdraft facility. This then brings in the point of motivation, finding new and better ways of motivating their workers.
In general the way in which a company manages its social responsibility has become one of the most important principles on which workers base their choice of career and employer. The following quote was taken from an article produced by Price Waterhouse ltd, which stated “Corporations recognize that their policies cannot be defined in terms of immediate success in the marketplace. Shareholder value is important, but in the longer run, they also have to worry about the workforce and the needs of society” (Mr Nitin Desai)
Regards to consumers, times have changed considerably. To maintain customer trust, it is vital that pace leisurewear are able to account for the social conditions in which their products have been manufactured. For example when purchasing their raw materials for the production stage, ensure that they are produced in a social manner. Since customers are becoming more aware and better informed, where by they want safe products that have been produced in an ethical way.
Therefore if Pace leisurewear was to incorporate CSR, it will offer an opportunity to assess and improve their profile and relationships with the workforce, consumers, investors and society. It should also enable them to sustain a continuing level of competitive profit and achieve a lasting value for the shareholder as well as for the stakeholders. CSR is a ‘win-win opportunity, not just for companies and financial investors but for all of society’ (www. Mallenbaker.
co. uk). By analyzing the above, it is clear that there is no real common definition for CSR, depending upon its core competencies and stake-holders interest, each company responds in its own way. But it is fair to say that it is linked with profitability, since there can be no social responsibility without profits. This point can be summarised by the quote “One of the most socially responsible things most companies can do is to be profitable” (Joel Makower).
In summary, this section of the report has focused on making a case for compatibility of corporate social responsibility and the success for Pace leisurewear ltd. It is evident to mention that environmental and social responsibility makes good business sense. By improving their social and environmental records, they will perform better in the long run than those like other companies who not behave responsibly. With regards to the policies mentioned in this section, it is up to the management of pace leisure to how they can build them into their practice.
The polices which have been set forward are no guarantee to resolving their current financial position (high overdraft), hence drake management are not liable to the collapse of the company. To sum up what has been mentioned can be summarized by the following quote: ” Business has become, in this last half century, the most powerful institution on the planet. The dominant institution in any society needs to take responsibility for the whole- as the church did in the days of the Holy Roman Empire. Nut business has not had such a tradition. This is a new role, not yet well understood or accepted” (Willis Harman).