Introduction
Corporate sustainability and corporate social responsibility have become important aspects of the corporate business world. Companies continually invest in these activities to not only promote better public relations but to also give back to the society. Companies in the Sultanate of Oman also participate in these activities. In this paper, the corporate sustainability and corporate social responsibility activities of W.J. Towell & Co. LLC will be evaluated. Evaluation will be based on Elkington’s Triple Bottomline of Sustainability and Carroll’s concept of Corporate Social Responsibility.
Background of W.J. Towell & Co. LLC
W.J. Towell & Co. LLC is a holding company which has ventures in different business sectors. The company is named after William Jack Towell who was British (“History”, n.d.). It was founded in 1886 and remains to be one of the oldest and largest family businesses in the Sultanate of Oman (“History”, n.d.). The company was purchased in 1914 by Mohamed Fadhil who decided to keep the British name. The company is now owned by the Sultan family. The company has seven clusters which include Automotive, Construction, Consumer Product Division (CPD), Engineering, Enhance, Property, and Service and Trade (“Overview”, n.d.).
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The automotive cluster participates in activities such as auto leasing and the manufacture of tires, batteries and other related products (“Overview”, n.d.). The construction cluster is responsible for third-party construction projects and in-house property developments. The consumer product division is responsible for the distribution of consumer goods. The engineering cluster carries out Engineering Procurement Construction and similar projects in the oil industry. The enhance, property, and service and trade clusters participate in brand distribution, real estate, and information technology businesses respectively.
Sustainability
Sustainability can be defined as the activities of present generations to improve the existing social and environmental needs of future generations (Alhaddi, 2015). Sustainability continues to be one of the goals of most governments, nonprofit organizations and businesses in the world (Slaper & Hall, 2011). Measurement of an organization’s degree of sustainability was always regarded as difficult. However, in 1997, John Elkington coined the triple bottom line (TBL) to help measure sustainability in corporate America (Alhaddi, 2015; Slaper & Hall, 2011). This framework continues to be used today.
Elkington’s Triple Bottom Line
The triple bottom line (TBL) is a framework through which the performance of businesses is measured in three dimensions. These three dimensions of performance include social, environmental and financial lines. These three dimensions are also referred to as the three Ps – people, planet and profits (Slaper & Hall, 2011). According to Elkington, this framework integrates the environmental agenda with the social and economic lines (Alhaddi, 2015). This framework has also become synonymous with sustainability and mainly targets businesses in the corporate world. The three dimensions of performance are explained below.
Social Dimension
All businesses activities conducted by any corporation must be beneficial and fair to the community. Therefore, according to Elkington, businesses must conduct activities that are beneficial and fair to the community, labor and human capital (Alhaddi, 2015). Most of these activities should encompass giving back to the community. Provision of health care coverage is one way in which corporations can give back to the community. Under this dimension, social responsibility becomes a measure of sustainability. Therefore, ignoring social responsibility could have impacts on an organization’s performance and sustainability.
There are different variables that can be measured under the social dimension depending on the type of organization (Slaper & Hall, 2011). The variables that can be measured for a business include charitable contributions, employee training hours and welfare and career retention. For nonprofit organizations, the funding of education and arts is always used as a measurable variable within the social dimension of the TBL. In governments, the policies made at the local, state and regional levels are used to measure sustainability. All the variables measured must have positive impacts on the communities surrounding these organizations.
Environmental Dimension
The protection of the environment is key for any organization. Corporations are expected to engage in activities that do not destroy the environment for future generations. This dimension involves factors such energy consumption, air and water quality, solid and toxic waste, use of natural resources and land use or cover (Slaper & Hall, 2011). Any initiatives made to conserve and preserve the environment have the potential to impact an organization’s performance and sustainability. These organizations stand to benefit financially by cutting down on operational costs (Alhaddi, 2015).
Different organizations have different measurable variables under this dimension. According to Slaper & Hall (2011), businesses can measure the following variables greenhouse gas emissions, water consumption and use of recycled materials. Nonprofit organizations, on the other hand, can measure the funding of sustainability-focused organizations and projects. The environment contains several resources that are of benefit to all. Organizations must, therefore, strive to ensure the conservation and preservation of the environment. This will ensure that future generations have access to the same resources as these organizations.
Economic Dimension
This dimension is associated with the economic system. It analyzes the business practices of different organizations and the impact these practices have on the economy (Alhaddi, 2015). It generally looks at how the economy can survive and evolve to eventually support future generations. Under this dimension, an organization’s growth is tied to the economy’s growth (Alhaddi, 2015). The economic dimension focuses on the economic value an organization provides to the community. Therefore, it looks at employment, income, taxes and other economy-related factors that an organization brings into a society.
Sustainability at W.J. Towell & Co. LLC
Evaluation of W.J. Towell & Co. LLC’s sustainability was done by looking at all the three perspectives of the triple bottom line of sustainability (TBL). The evaluation yielded the following results:
Social Dimension
W.J. Towell & Co. LLC has corporate social responsibility initiatives. The CSR initiatives provided by Towell target the society around it offering them education and medical services. Through its Future Generation International program, it provides budding Omani entrepreneurs with the opportunity to grow their ideas into businesses by offering training and funding options (“Future Generation International”, n.d.)
Environmental Dimension
W.J. Towell & Co. LLC actively participates in environmental conservation and preservation activities. One of its group companies under the enhance cluster – Enhance Oman supports the Environmental Society of Oman (ESO). Enhance Oman has provided recycling collection points and over 25 recycling domes around Muscat and aids in the collection of plastic bottles. Its alliance with ESO began in January 2008 (“Corporate Social Responsibility”, n.d.).
Economic Dimension
W.J. Towell & Co. LLC is one of the largest companies in Oman. It is a company with several ventures in different business sectors and thus contributes heavily to the economy of the Sultanate. Its seven clusters provide employment to several groups of professionals from engineers to supply chain agents. It also has branches in other countries such as India, Kuwait, and the United Arab Emirates thus contributing to the continent’s economy.
Corporate Social Responsibility
Corporate social responsibility (CSR) has become a worldwide concept in all businesses. There are several definitions of corporate social responsibility. A definition was suggested by Keith Davis in 1960 and it stated that social responsibility as it was known then, was any business decision or action taken that does not directly benefit the firm (Carroll, 1991). In 1961, Eells and Walton defined CSR as any problem that arises when a corporation chooses too “cast its shadow on the social scene” (Carroll, 1991). This definition also referred to the ethical principles that governed the corporation’s relationship with the society.
In today’s definition of corporate social responsibility, Carroll’s four-part model of CSR is used. According to Carroll, corporate social responsibility should encompass four societal expectations of organizations – economic, ethical, legal and philanthropic (Carroll, 2016). These societal expectations are further depicted as a pyramid – Caroll’s pyramid of corporate social responsibility. These four categories translate into the four responsibilities that all organizations should adopt in their CSR models. Although separate, ethical responsibilities are expected to be part of all the responsibilities in Caroll’s pyramid of CSR (Carroll, 2016).
Carroll’s four-part model of CSR is also summarized graphically as a pyramid. This pyramid reveals the requirements, desires, and expectations of the society when it comes to CSR. It should be noted that the pyramid does not view the four responsibilities as single units but as a “unified whole” (Carroll, 2016). Therefore, a company’s social responsibility framework should embrace all responsibilities and not just part of them.
Caroll’s Four-Part Model of Corporate Social Responsibility
As stated before, Caroll’s model of CSR is the most common concept used today. There are several variations of this model, but all agree on similar responsibilities that should be carried out by corporations. The four responsibilities it advocates are discussed below.
Economic Responsibilities
The basic function of any business organization is economic. Business organizations are expected to provide the society with the goods and services that it needs and desires (Carroll, 2016). It is from these goods and services business organizations can sustain themselves when they make profits. The profits made will then benefit all the stakeholders of the organization (Carroll, 2016). Therefore, it is the responsibility of a business organization to be competitive, profit-oriented and highly efficient (Carroll, 1991). An organization’s economic responsibilities influence the rest of its responsibilities.
Legal Responsibilities
The society expects all business organizations to perform their economic responsibilities legally. It is the legal responsibility of corporations to operate under the laws and regulations of all governments – local, state and federal (Carroll, 1991). Businesses are therefore expected to perform as per the government’s and law’s expectations, comply with all regulations (local, state and federal), conduct themselves as law-abiding corporate citizens, fulfill society’s legal obligations and provide goods and services as per the legal requirements (Carroll, 2016). Adhering to these responsibilities is integral to any successful organization.
Ethical Responsibilities
The society’s expectation of corporations is that while they conduct their economic and legal responsibilities, they do so in a manner that is ethical. Ethical responsibilities show concern for all stakeholders of an organization – from employees to consumers (Carroll, 1991). Ethics refer to the societal values and norms which are then used to create laws and regulations. The ethical responsibilities of business organizations should encompass performance in a manner consistent with societal mores and norms, recognition and respect of new/evolving ethical moral norms in the society, and prevention of any ethical compromise (Carroll, 2016).
Philanthropic Responsibilities
Philanthropy is not really a responsibility but is a societal expectation of all corporations. The society expects corporations to engage in activities and programs that promote the society’s welfare or goodwill (Carroll, 1991). Philanthropy can be in the form of donations, volunteer programs, and community development (Carroll, 2016). It should be noted that philanthropy is not a legal requirement but a choice. The society expects corporations to enhance the quality of life in communities by participating in voluntary and charitable activities, while at the same time aiding educational institutions (Carroll, 1991).
W.J. Towell & Co. LLC’s Corporate Social Responsibility Framework
Evaluation of W.J. Towell & Co. LLC’s corporate social responsibility framework was done by looking at all the four responsibilities according to Carroll’s four-part model of corporate social responsibility (CSR). The evaluation yielded the following results:
Economic Responsibilities
W.J. Towell & Co. LLC is a group company with several business ventures. The company has been in existence since 1886. Its venture into the printing industry led to the establishment of the first private bank in Oman – the National Bank of Oman (“History”, n.d.). It also continues to distribute products to its consumers through the consumer product division. Its long existence and growth into one of the largest companies in the Sultanate mean the company is continually making profits and thus carrying out its economic responsibilities.
Legal Responsibilities
W.J. Towell & Co. LLC’s business ventures span different business sectors. The continued existence of these ventures without any legal scandals means the company continues to operate well within the required laws and regulations. The Towell Knowledge of Institute (TKI) – the company’s institute of training and development has even received a first-class rating from the Ministry of Manpower (“Towell Knowledge Institute”, n.d.). This means the company offers its services as per the government’s requirements.
Ethical Responsibilities
W.J. Towell & Co. LLC’s activities and business ventures are well within the accepted norms of the Omani people. None of its group companies distributes products that are illegal in the Sultanate of Oman. The absence of lawsuits filed against the company also shows that it operates ethically thus creating consumer and employee satisfaction. Its adherence to laws and regulations also shows its willingness to be ethically responsible for its business practices.
Philanthropic Responsibilities
W.J. Towell & Co. LLC takes corporate social responsibility very seriously. The company has invested in several activities aimed at giving back to the society. The company’s CSR programs target the less fortunate groups in the Sultanate. Some of the sectors it has contributed towards include housing and facilities development, education and academic support, healthcare and welfare, and social and religious contributions (“Society”, n.d.). These initiatives have helped the less fortunate in Oman.
Conclusions
W.J. Towell & Co. LLC’s investment in sustainability and corporate social responsibility makes it a great company. An evaluation of its sustainability using the Triple Bottomline of Sustainability reveals it is performing well. The company continues to support environmental initiatives such as recycling and collection of plastics thereby protecting the environment. An evaluation of its corporate social responsibility programs using the four-part model of CSR reveals that the company is focused on helping improve the lives of communities in the Sultanate. The company conducts activities that are aimed at improving living conditions, healthcare and access to education for the less fortunate in the society.
Recommendations
W.J. Towell & Co. LLC’s performance in sustainability and CSR deserves to be applauded. Information on the activities related to corporate social responsibility and sustainability carried out by the company is minimal. There are also no reports on these activities. Therefore, W.J. Towell & Co. LLC should provide this information so that it is easily accessible to the public. This information will create good public relations and attract potential sponsors and investors who are interested in CSR and sustainability. The information will also make it easier to evaluate the company’s CSR and sustainability.
The company should also increasingly participate in such initiatives if it is to continue growing and making profits like it has over the years. Its business ventures make it economically valuable to not only the Sultan family but to the Sultanate’s economy as well. Companies in the Sultanate of Oman should emulate W.J. Towell & Co. LLC if they intend to succeed in both economic and social perspectives.
References
Alhaddi, H 2015, ‘Triple Bottom Line and Sustainability: A Literature Review’, Business and Management Studies , 1(2): pp 6-10 Available at https://pdfs.semanticscholar.org/9afb/4ab4721ae27f6e04bd6055247cd9f484ba42.pdf. [Accessed 20 May 2018].
Carroll, A B 1991, ‘The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders’, Business Horizon Available at http://faculty.wwu.edu/dunnc3/rprnts.pyramidofcsr.pdf. [Accessed 20 May 2018].
Carroll, A B 2016, ‘Carroll’s pyramid of CSR: taking another look’, International Journal of Corporate Social Responsibility Available at https://jcsr.springeropen.com/articles/10.1186/s40991-016-0004-6. [Accessed 20 May 2018].
Corporate Social Responsibility n.d., Enhance Oman, 20 May 2018, http://www.enhanceoman.com/content/charity-activities
Future Generation International n.d., WJ Towell Group, 20 May 2018, http://www.wjtowell.com/future-generation-international.php
History n.d., WJ Towell Group, 20 May 2018, http://www.wjtowell.com/history.php
Overview n.d., WJ Towell Group, 20 May 2018, http://www.wjtowell.com/overview.php
Slaper, T F & Hall T J 2011, ‘The Triple Bottom Line: What Is It and How Does It Work?’, HBR/Indian Business Review , vol. 86, no. 1. Available from: http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html. [20 May 2018].
Society n.d., WJ Towell Group, 20 May 2018, http://www.wjtowell.com/society.php#
Towell Knowledge Institute n.d., WJ Towell Group, 20 May 2018, http://www.wjtowell.com/towell-knowledge-institute.php#
