Running head: CORPORATE SOCIAL RESPONSIBILITY Corporate Social Responsibility Student’s name: Institutional affiliation: Date: 1 CORPORATE SOCIAL RESPONSIBILITY 2 Setting objectives a. List all of your project's objectives, including the most and least significant goals. 1. To determine the impact of corporate responsibilities on the financial performance of the U.S banks 2. To determine the role of employees in implementing Corporate Social Responsibility (CSR) 3. To determine the role of financial bank management in implementing Corporate Social Responsibility (CSR) 4. To determine the problems facing the banking sector in the United States 5. To determine some of the policies that the bank sector can implement to solve their financial b. Rank your project's objectives from most important to least important. 1. To determine the problems facing the banking sector in the United States 2. To determine some of the policies that the bank sector can implement to solve their financial 3. To determine the impact of corporate responsibilities on the financial performance of the U.S banks 4. To determine the role of financial bank management in implementing Corporate Social Responsibility (CSR) 5. To determine the role of employees in implementing Corporate Social Responsibility (CSR) CORPORATE SOCIAL RESPONSIBILITY 3 c. Identify the project's top rank objective (TRO). To determine the impact of corporate responsibilities on the financial performance of the U.S banks Step 2: The Rhetorical Situation a. Subject--What is your proposal about? What is it not about? The proposal is about highlighting the relationship between Corporate Social Responsibility (CSR) and Financial Performance of the U.S Banks b. Purpose--What is your proposal supposed to achieve? The proposal is supposed to demonstrate that Corporate Social Responsibility (CSR) can help in solving the financial problems facing the banking sector. c. Readers--Who will read your proposal? This proposal is likely to be read by managers, stakeholders, and employees of the financial sectors, especially in the banking industry. d. Context--Where will your proposal be read, and how does that context shape the reading? The proposal will be read in financial journals, business newspapers, executive journals, and commercial and business websites. The contexts will enhance the likelihood of the target audience to read and implement the proposal. Step 3: Looking Ahead CORPORATE SOCIAL RESPONSIBILITY a. What research do you need to conduct to help gather information to better define the issue/problem/opportunity and your (re)solution? I will research the problems facing the banking sector in the country and how Corporate Social Responsibility (CSR) can help in solving the problems identified. b. What will you need to do to gather this information? I will need full access to the college library and an internet connection to access all the available secondary sources like books, journals, and articles related to the subject matter. Also, I will need internet access to connect and contact some of the local banks within my locality to get first-hand information relating to the subject matter. c. How will you know when you have everything you need? I will know I have what in need the moment I will have all the information necessary to accomplish all the objectives mentioned above. 4 Name: || READER-CENTERED ANALYSIS CHART Readers Primary: CEO’s, CFO’s, Board of Directors, Chief Operation Officer (COO), President, and Vice President of Production Needs Values Expectations The needs of primary users are credible, viable, verifiable, and reliable information about CSR activities and financial performance for decision-making and to help determine the role of financial bank management in implementing Corporate Social Responsibility (CSR) Their core values are integrity of the information, credibility of the information, rationality in decisionmaking, willingness to take risk, clear vision, and pragmatism. Their major expectation is that the information about CSR activities and financial performance will help to make viable decisions. They also expect that the proposal is realistic in highlighting the policies that the bank sector can implement to solve their financial. The needs of secondary users are quality information about the relationship between CSR activities and financial performance that will help them determine some of the policies that the bank sector can implement to solve their financial growth. The core values of secondary users are conscientiousness of the information, emotional intelligence, and ability of the information to trigger engagement with tertiary users. They expect simplified and accurate proposal to help them offer advisory support pertaining to the role of primary users in implementing Corporate Social Responsibility (CSR). High level of responsiveness information, optimism, and ability of information enthusiasm about the directives given by top secondary users are core values of tertiary users. Tertiary users expect easy-to read, extensive, and achievable outcomes such as minimize the problems facing the banking sector in the United States. Secondary: Department managers and branch managers Tertiary: Accountants, financial adviser/ or Financial Analysts, Financial Examiners, The needs of tertiary users are available information about the impact of corporate responsibilities on the financial performance of the U.S banks. This helps them to evaluate the next course of actions, allocate responsibilities and tasks to the Name: Budget Analysts, Loan Officer, Financial Manager, and Investment Bankers. Gatekeepers: Secretaries, editors, reporters, news executive, and messengers operative employees, and to communicate the objectives and goals of the firm laid down by the primary users. The needs of gatekeepers are responsive information (how CSR directly or indirectly affect their activities) to help them execute the directive given by tertiary and primary users. They value volume of information and not the quality. Their major expectation is that the proposal will help them to build a cohesive relationship with tertiary, secondary, and primary users. Note: Please specifically indentify your primary, secondary, and tertiary audiences (i.e., technicians, consumers, etc.). Running Head: DISCUSSION QUESTIONS: THE RELATIONSHIPS BETWEEN CSR AND FINANCIAL PERFORMANCE OF THE U.S BANKS 1 Discussion Questions: The Relationship between CSR and Financial Performance of the U.S Banks Name Institutional Affiliation DISCUSSION QUESTIONS: THE RELATIONSHIPS BETWEEN CSR AND FINANCIAL PERFORMANCE OF THE U.S BANKS 2 1. Describe your intended reader-users--who are these readers? The intended readers (users) are those with vested interests in the performance of banks. They have the financial knowledge and versed in CSR activities. They are affected directly or indirectly depending on the performance of banks. They include managers, stakeholders, Chief Financial Officers (CFO), CEO’s, community, and employees working in banks and other relevant fields (Berton et al., 2018). Stakeholders can be categorized into financiers, sponsors, suppliers, government agencies. Managers will gain a lot from the proposal because they would get to understand the importance of CSR activities. 2. Describe your intended audience in terms of the organization they work for and their position or title. The intended audience work for banks and government finance agencies (including the U.S Department of Treasury, National Treasury, and U.S Securities and Exchange Commission). The positions of those working in banks include CEO’s, CFO’s, Bank managers, Chief Operation Officer (COO), Vice President of Production, and accountants. Those working in both government finance agencies include CEO’s, Financial Officers, and environmental officers. 3. Describe your intended audience in terms of their occupation, profession, or field. The intended audience those working in financial fields and hold professions such as accounting, financial adviser/ or Financial Analyst, Financial Examiner, Budget Analyst, Loan Officer, Financial Manager, and Investment Banker. 4. Describe your intended audience in terms of their needs for or interest in the information you plan to include in this writing project. DISCUSSION QUESTIONS: THE RELATIONSHIPS BETWEEN CSR AND FINANCIAL PERFORMANCE OF THE U.S BANKS 3 The interests of the CEO and others occupying the top level is to ensure that information is credible, viable, verifiable, and reliable for decision-making. The interests of operational managers and others holding the middle positions are to ensure that information is readily available for middle-level decisions. The interests of accountants and others holding the bottom level position are to ensure that information is available for execution. 5. Describe how your intended audience will use the information you include in this writing project. The audience would use the information for decision-making purposes, financial planning purposes, and comparison purposes. For example, the CEO and Vice Presidents require the information for decision-making purposes and giving the go-ahead (Berton et al., 2018). Because they occupy the top-most positions in banks, they need this information to make viable decisions going forward. CFO requires information for financial planning and examining whether investing in CSR activities is viable. 6. Describe the technical background of your intended audience--what do they know and not know about your topic? what are their technical limitations in relation to this writing project? The intended audience has partial technical knowhow. For example, they know the role of technology such as Decision Support Systems (DSSs), Management Information Systems (MISs), and Artificial Intelligence (AI) in financial planning, but they do not the effects of CSR activities on the financial activities. Their main technical limitations include difficulty in determining the best technical tools to address the issue and how to leverage these tools for effective planning. DISCUSSION QUESTIONS: THE RELATIONSHIPS BETWEEN CSR AND FINANCIAL PERFORMANCE OF THE U.S BANKS 7. What do your responses about these reader-users initial reveal to you? Considering that users/or readers have technical limitations, the responses depict that the proposal must be done in-depth to ensure that everyone can utilize it productively. It also suggests that the proposal must elevate the knowledge of the intended audience by offering a wide, clear, and in-depth analysis. 4 DISCUSSION QUESTIONS: THE RELATIONSHIPS BETWEEN CSR AND FINANCIAL PERFORMANCE OF THE U.S BANKS Reference Berton, F., Mocetti, S., Presbitero, A. F., & Richiardi, M. (2018). Banks, firms, and jobs. The Review of Financial Studies, 31(6), 2113-2156. 5 Running Head: CURRENT SITUATION DRAFT Current Situation Draft: The Relationship between Corporate Social Responsibility (CSR) and Financial Performance of the U.S Banks Name Institutional Affiliation 1 CURRENT SITUATION DRAFT 2 Introduction Over the past 10 years after the 2008 recession, the majority of the U.S banks have experienced a sharp decline in profits. In the 2018-2019 financial year, profits of the U.S banks fall from $61.9 billion to $57.4 billion. Although the economic recession of 2008 is partly attributed to these worrying trends, studies have linked the sharp decline to the non-involvement of banks in CSR activities. Many of the U.S banks focus on maximizing profits and failed to invest in CSR. In other words, the majority of the banks are focusing on Friedman’s shareholder theory of profit maximization and ignores Freeman’s shareholders that encourage corporations to engage in CSR activities. The purpose of this paper is to highlight the causes, effects, and give possible solutions to avert the situation. Body (Narrative Approach) According to a print article written by Carew (2019), the cause of the decline in profitability of the U.S banks is largely attributed to poor investment in CSR activities. Before the 2008 recession, some banks used to engage in CSR activities, but after the recession, many diverted their efforts in profit maximization and little involvement in CSR activities with an intention of correcting the negative effects of the 2008 recession. After changing direction to profit maximization, it precipitated this issue at hand. Basing on a study by Carew (2019), the most affected banks are small banks. An empirical article written by Yusoff & Adamu (2016) indicated that further decline in profits due to non-involvement by banks in CSR activities might trigger loss of jobs. Loss of jobs might trigger other issues such as homelessness, extreme poverty, depression, drug abuse, and people engaging in social crimes such as robbery and violence. Apart from causing loss of jobs, CURRENT SITUATION DRAFT 3 the U.S GDP is likely to fall because banks play an important role in economic growth and development. Moreover, the comparative advantage currently enjoyed by the U.S will also decline. Given that the anticipated consequences of non-involvement in CSR activities, the banks have no other options but to invest in CSR. Considering the huge magnitude of this issue, failure by banks to engage in CSR activities is likely to worsen the situation. According to an electronic article by Schroeder (2020), the profits of banks will decline further in the next 5 years. Experts have predicted that the profits will continue to dip with the worsening global economy. If banks are to correct the impending issue, they need to be aggressive on CSR activities. Banks need to implement policies that encourage employees to engage in CSR activities. To foster a culture where employees are motivated to engage in community-based activities, employees who engage in CSR should be rewarded through job promotion, salary increment, or other intrinsic and extrinsic rewards. Conclusion The U.S banks are undeniable between a “rock-and-hard” place and thus need to act by engaging in the CRS activities. With the evidenced of the sharp decline in profits, the banks have no other options but to engage in CSR activities. Although people like Friedman might argue that CSR activities reduce the profits (dividends per share), they fail to understand that CSR creates goodwill from the stakeholders and trigger a buy-in from everyone. CURRENT SITUATION DRAFT 4 References Carew, S. (2019). Wall Street Week Ahead: Bruised U.S. banks expected to report third quarter earnings decline. U.S. Retrieved March 11 2020, from https://www.reuters.com/article/us-usa-stocks-weekahead/wall-street-week-aheadbruised-u-s-banks-expected-to-report-third-quarter-earnings-declineidUSKBN1WQ1GH. Schroeder, P. (2020). UPDATE 1-U.S. bank profits down 1.5% in 2019 - FDIC. CNBC. Retrieved from https://www.cnbc.com/2020/02/25/reuters-america-update-1-u-s-bankprofits-down-1-point-5-percent-in-2019--fdic.html. Yusoff, W. F. W., & Adamu, M. S. (2016). The relationship between corporate social responsibility and financial performance: Evidence from Malaysia. International Business Management, 10(4), 345-351.
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