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Corporate Social Responsibility Analysis

Executive Summary of Construction Productivity Enhancement Strategies

Corporate Social Responsibility and Managerial Ethics are two key concepts for the organization that can help in attaining success and promoting the community for a better life. CSL Limited has focused on the core values to fulfil social responsibilities and effectively promote business practices in the biotechnology industry. Direction and leadership qualities of a leader help in achieving competitive advantage.

Table of Contents

Executive Summary.


Corporate Social Responsibility and Managerial Ethics.

External Environmental Analysis.

Political factors.

Economic factors.

Social factors. 

Technological factors.

Environmental factors.

Legal factors.

Threats of New Entrants.

Bargaining Power of Suppliers.

Bargaining Power of Buyers.

The Threat of Substitute Products or Services.

Rivalry among Existing Competitors.

Internal Environment Analysis.

Successful CEOs and their competencies.



Introduction to Construction Productivity Enhancement Strategies

Corporate Social Responsibility (CSR) is considered as a management concept that helps in integrating the environmental and social concerns in the business operations for the companies to promote interaction with the stakeholders. Key practices of businesses to promote CSR are volunteerism, diversity and labour practices, environmental conservation and philanthropy (Grayson & Hodges, 2017). This report aims at analyzing the business practices of CSL Ltd to evaluate its managerial ethics and corporate social responsibility activities. It can help in understanding the ethical approach necessary for a business based on the internal and external environment. Through the analysis of CSR and managerial ethics promoted by the company, the effectiveness of the business practices can be understood. It will be followed by external and internal environment analysis. It can help in identifying the required values and competencies for a business leader to attain success with the help of the successful CEO of CSL Ltd. Key strengths and opportunities of the organization can be analyzed with the help of the internal and external environment which can promote the recognition of relevant strategies to gain successful growth.

Corporate Social Responsibility and Managerial Ethics

Corporate Social Responsibility can be defined as the balance maintained by the companies to meet social, environmental and economic needs of the business. It is also known as Triple Bottom Line approach wherein the business operations are managed with the effective business practices of economic, environmental and social activities to provide strength to the society (Crane, Matten & Spence, 2019). Organizations focus on fulfilling the expectations of stakeholders and shareholders by managing strategic business management and promoting valuable contribution to the community. Effective CSR concept in the organization can bring competitive advantage with increased profits and sales, improvement in brand image, reduction in operational costs, optimized access to markets and capital, enhances product quality and productivity through efficient human resource base (UNIDO, 2020).

CSL Limited is an innovative biotechnology-based company that is specialized in manufacturing, developing and researching the products for the prevention and treatment of serious medical conditions of humans. Business goals of the company are aligned with corporate responsibility to meet its unique capabilities. CSL is a corporate responsible company that supports the local, biomedical and patient communities by fulfilling the promises of safe and quality based products and services with an integrated positive environment (CSL, 2020a). Some of the examples of CSR in CSL Limited are as follows:

  • A positive work environment is provided by CSL for its employees with a culture of mutual respect and trust.
  • Ethical consideration is followed by CSL to operate in the market.
  • Safe and high-quality therapies are maintained by the organization to meet the required standards throughout the stages of the product life cycle (CSL, 2020b).

Managerial ethics are referred to as the moral guidance of the management to provide necessary direction to the employees. Each business focuses on its ethical approach to meet the distinct needs of the organization. Managerial ethics are essential for an organization to inspire followers with a positive image in the society. 

CSL emphasizes on ethical conduct, value integrity, sustainable business practices, a healthy workplace and maintaining safe activities in the business. Anti-Corruption Policy, Code of Corporate Responsibility and Environmental Policy are promoted by CSL to engage others for effective ethical business practices (CSL, 2020c).

External Environmental Analysis

The external environment is comprised of all the external factors of the organization that can influence the business. While the organization does not influence all the factors available in the external environment. To evaluate the external environment of an organization, Porter’s five forces model and PESTEL analysis are identified as most useful. PESTEL analysis stands for Political, Economic, Social, Technological, Environmental and Legal forces that are available in the external environment of an organization (Munro & Belanger, 2017).

The PESTEL analysis of CSL Limited can be seen as below:

Political factors

Political factors impact the stability of the organization including its profitability. CSL Limited is working globally as a biotech company. The diversified political environment in several countries can impact the business activities of the company. Political instability in a country can influence the taxation policies, regulations and investment thus by working in a global environment, it possesses a higher risk of political environment. Different political factors that can impact the organization are level of corruption, intellectual property protection, industrial safety and regulation policies, product policies, wage legislation, legal framework, bureaucracy in the economy and employee benefits policies (Pan, Chen & Zhan, 2019).

Economic factors

Economic factors represent the external forces of the organization based on money, services and products. These factors have a direct relation to the economy based on business operations. Some of the economic factors that can impact the business operations are interest rate, foreign exchange rate, inflation rate, savings rate and economic cycle. Australia is a developed country thus the economy is identified as stable. However, in the situation of the global pandemic, all economies face issues based on the GDP and other factors. It can influence the growth of the organization (Pan, Chen & Zhan, 2019).

Social factors

Social factors represent the forces available in the community such as income, employment, social support, education and safety. Attitude, beliefs and behaviour of the organization are based on the culture of the community. As CSL is operating is a dozen of countries, it needs to adopt an effective culture which can fulfil the needs of all the societies. While it can promote a key threat for the company through the required skills and knowledge of individuals. Each community does not need to be integrated with the desired knowledge and skills (Pan, Chen & Zhan, 2019).

Technological factors

Rapid changing technology is a key concern for all organizations. It requires quick adaptation of relevant technology to develop specific products. Through technological advancement, significant threats can be identified. CSL is operating in both developing and developed nations wherein high investment in research and development is required to work with the updated technology. Wherein innovation is the core value of CSL which represents its unique DNA. Development of new products and the discovery of new molecules can help in promoting tax advantages for the company as well (Pan, Chen & Zhan, 2019).

Environmental factors

Environmental factors represent pollutants, temperature, food, parasites, light, sound and population density. It is a major concern for all the countries thus significant environmental policies are adopted by the economies. CSL focuses on the conservation of natural resources, prevent pollution through unique approaches and reduce emissions with continuously improved techniques. New environmental policies can benefit the organization to work in a safe environment and manage the policies (Pan, Chen & Zhan, 2019).

Legal factors

Legal factors influence the growth of an organization at most through significant change in the regulations and laws. Employment laws, consumer protection laws, copyrights, anti-trust laws and discrimination laws influence the economy and organizations. With the operation in several countries, CSL shows a necessary adoption of laws. However, CSL is continuously making effective changes with the CSR policy that can help in achieving sustainability through a safe environment (Pan, Chen & Zhan, 2019).

Porter’s five forces model helps in understanding the levers of profitability in the industry. It can help in developing certain strategies for the management to meet the needs of profitability and competitive advantage (Mathooko & Ogutu, 2015).

Threats of New Entrants

With the entry of new companies in Biotechnology, Pharmaceuticals and Life Sciences industry, higher pressure can be identified on CSL. Innovation, low costs and better value propositions can help the new companies to build a safeguard in the market. While CSL Limited can provide innovative products that can create a barrier for new entrants. However, CSL is already concerned for innovation which shows a low threat of new entrants (CSL, 2020b; Mathooko & Ogutu, 2015).

Bargaining Power of Suppliers

All the companies in the Biotechnology industry depend upon different suppliers for their raw material. The dominant position of suppliers can impact the profit margins of the organizations. Efficient suppliers are required for CSL in the supply chain with innovative products that can shift the needs of the raw materials. However, the threat of suppliers is medium for CSL (CSL, 2020b; Mathooko & Ogutu, 2015).

Bargaining Power of Buyers

Buyers are always demanding for lower prices and higher quality. It can bring pressure on CSl with the requirement of innovative products. Thus, rapid innovation can help in managing the bargaining power of buyers. For CSL, the threat for the bargaining power of buyers is low due to a large customer base and highly innovative products (CSL, 2020b; Mathooko & Ogutu, 2015).

The Threat of Substitute Products or Services

Several substitute products are available in the market which can impact the profitability of the organization. However, CSL is the sole supplier of distinguished products with their unique nature such as Q fever vaccine and antivenoms. It lowers the threat of substitute products or services (CSL, 2020b; Mathooko & Ogutu, 2015).

Rivalry among Existing Competitors

Distinguished competitors of CSL are available in the market which can impact the profitability of the firm. However, sustainable differentiation of the organization can help in managing the competitors. It can be noted that the blood separation capacity of CSL is 10% while the competitors range around 7.5%. It shows that CSL has a medium risk of competitors (CSL, 2020b; Mathooko & Ogutu, 2015).

Opportunities and threats for CSL are as follows:


· Expectations for high growth

· Barriers for new companies

· Competitive advantage with the business expansion by other companies as it can slow down their growth

· Growing expenditure on health can benefit the company

· Tax benefits through research and development (CSL, 2020b)


· Shortage of skills among scientists and employees

· Rising costs of supply

· The rapid change in technology

· Modifications in government regulations

· Increase in the number of small biotech firms

· High competition in the Asia Pacific region for low-cost pharmaceutical manufacturers (CSL, 2020b)

Table 1: Opportunities and Threats for CSL Limited

Internal Environment Analysis

The internal environment represents the factors, events, people and culture in an organization that can impact the decision making ability of the organization. It usually influences the attitude and behaviour of human resources (Indris & Primiana, 2015). Based on the internal environment analysis, significant strengths and weaknesses of CSL are as follows:


· Strong capability for research and development

· Strong position in the market

· A positive image and brand reputation with the investors

· Sole supplier of distinguished products with their unique nature such as Q fever vaccine and antivenoms

· New products inline

· The high benefit with the knowledge and experience of CSL leaders

· CEO and executive team of CSL is a major strength of the company

· Accessibility to the University of Melbourne

· Blood separation capacity is 10% while the competitors range around 7.5% (CSL, 2020b)


· CSL has invested a huge amount in research and development projects which can take a long duration for return on investment.

· Cultural integration is required with the acquisition of Novartisto

· Rising costs, short product lifecycle, research and development cycles and competitive pricing can impact the profitability of the firm (CSL, 2020b).

Table 2: Strengths and Weaknesses of CSL Limited

Resource-based model is effective in strategic management to analyze the resources that are superior for organizational performance. To attain competitive advantage, this model is considered as highly relevant to its highly profitable resources identification (Indris & Primiana, 2015).

The resource-based model of CSL Limited represents the tangible and intangible resources in the organization such as human resources, skills, knowledge and other types of equipment that are necessary to achieve success. Appropriate resources are available in the organization to attain competitive advantage using core capabilities and competencies (Indris & Primiana, 2015).

Successful CEOs and Their Competencies

Most successful CEO of CSL Limited was “Dr Brian A McNamee” who changed the face of the company through his vision and directions. He gave his 11 years to the company with the expertise of enhancing its profitability and maintain a brand reputation. When he was in his mid-30s, he got an opportunity to head the sick government enterprise of CSL. This decision changed the face of the organization with a global specialty biopharmaceutical company. In 1990, CSL was facing the worst time with negative cash flow, limited future and low profitability. Wherein the efforts of McNamee has changed the overall view and perspective of the organization. A strong belief in the market potential and opportunities enhanced the profitable situation for the firm. Strategic alliances and partnership approaches are used by McNamee to enhance the business growth of CSL (CSL, 2020a; CSL, 2020b).

The core value of the company represents its success values with aligned vision and mission. CSL aims at five core values in the business which are superior performance, collaboration. Integrity, innovation and patient focus. It helps in making a difference in the community through changing lives and proceeding towards a quality life. Culture of the organization and its innovation capability are key competencies of the company which are developed by the CEO to proceed towards growth and attain success. Ethical consideration. Diversity, support to community and maintaining innovation capability promotes the core competencies of CSL.

Motivation is the key concept to inspire employees and enhance their value in the organization. A CEO can understand the goal of the organization and work towards success with the employees. Thus it is necessary to provide monetary and non-monetary incentives to employees which can inspire them to work effectively. McNamee inspired the employees with the efforts and developing a mutual respect environment to meet the needs of all individuals (CSL, 2020a; CSL, 2020b).

McNamee has identified the flaws in the organization and managed to work with innovative capabilities to achieve success. Analysis of internal and external environment helped in identifying the success strategies. Strategic thinking and innovation help in developing and implementing strategies for the company's expansion plans (CSL, 2020a; CSL, 2020b).

Conclusions on Construction Productivity Enhancement Strategies

It can be concluded that CSL Limited effectively follows the CSR policy and attains successful growth with its innovative capabilities. Core values and competencies of the organization help in managing the internal and external environment. Strong brand reputation and positive image can be attained with the consideration of managerial ethics and corporate social responsibility.

References for Construction Productivity Enhancement Strategies

Crane, A., Matten, D., & Spence, L. (Eds.). (2019). Corporate social responsibility: Readings and cases in a global context. New York: Routledge.

CSL. (2020a). Our corporate responsibility. Retrieved from: https://corporateresponsibility.csl.com/

CSL. (2020b). Annual Report. Retrieved from: https://corporateresponsibility.csl.com/-/media/csl/documents/annual-report-docs/csl-ltd-annual-report-2020-full.pdf?la=en-us&hash=72DDD3B56A385ED2C811B5BC8183C3BBFEC6E2BB

CSL. (2020c). Ethics. Retrieved from: https://www.cslships.com/en/our-values/ethics#:~:text=At%20CSL%2C%20we%20value%20integrity,Policy%20and%20an%20Environmental%20Policy.

Grayson, D., & Hodges, A. (2017). Corporate social opportunity! Seven steps to make corporate social responsibility work for your business. New York: Routledge.

Indris, S., & Primiana, I. (2015). Internal and external environment analysis on the performance of small and medium industries (SMEs) in Indonesia. International journal of scientific & technology research, 4(4), 188-196.

Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive forces framework and other factors that influence the choice of response strategies adopted by public universities in Kenya. International Journal of Educational Management, 29(3), 334-354.

Munro, M. M., & Belanger, C. (2017). Analyzing external environment factors affecting social enterprise development. Social Enterprise Journal, 13(1), 38-52.

Pan, W., Chen, L., & Zhan, W. (2019). PESTEL analysis of construction productivity enhancement strategies: A case study of three economies. Journal of Management in Engineering, 35(1), 05018013.

UNIDO. (2020). What is CSR? Retrieved from: https://www.unido.org/our-focus/advancing-economic-competitiveness/competitive-trade-capacities-and-corporate-responsibility/corporate-social-responsibility-market-integration/what-csr

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