TNT is a courier delivery company which is spread all throughout the world. It specialises in business to business package delivering. It is famous for its on-time delivery capabilities. They also have a developed home to home delivery system in which they pick up the package from the sender's home and then deliver the package at the receiver's door step. TNT operates its own aircrafts and hence it is so effective in timely delivery. Almost all major cities around the world have a TNT warehouse where all the packages for that city are received. The couriers are given to their respective owners from this warehouse. People at TNT make sure that the package is delivered on the given date. They realise how important any given package can be to one of the receivers.
TNT is well connected in more than 200 countries across the globe. All kinds of documents,
Parcels and freights are carried by the company. TNT at present is employing more than 40000 people all around the globe. It has a fleet of 43 aircrafts and has almost 20000 road vehicles all throughout the world. The company owns around 1000 depots around the world. All these assets are the reason for the success of TNT. TNT works for exceeding their client's expectations when it comes to delivering of the clients cargo. That is the basic aim of TNT. There is a value attached to each cargo which is delivered by the company. The people at TNT recognise this value. They believe that they are delivering this value and not just the parcels. This approach of the company has made them this successful. TNT believes in creating value to the money of its shareholders and making them prideful owners of the company. They are very oriented towards their clients. They believe that it is the company's social responsibility to deliver value to its customers.
The people at TNT believe in staying honest. They aim at satisfying their customers and not at minting money out of them. People at TNT believe in improving their performance, they believe innovation is the only way to succeed in today's world. The workforce at TNT believes that it is very important for them to respect their customers. Moreover it is also important to respect and believe in the work that they do. Team spirit is also an important characteristics of the workforce at TNT, they believe working together makes the work all the more easier to perform. Without team spirit co-ordination becomes impossible and without co-ordination not even a single effective and timely delivery can be made. Success at TNT means sustainable profit. TNT believes in the long term profit and not in the short term ones. Serving the world through its services is the motto of the company. TNT was established in 1946. (roldan) TNT is more famous for its international freight carrying services. TNT also emphasises on the safety of such parcels. No matter what the parcel is containing, whether documents or any other articles it is the duty of any freight carrying company in the world to ensure the parcel's safety.
TNT in United Arab Emirates was recently given various awards for its good work in the country. It was voted as one of the best package delivering companies of the region. Special acknowledgement was given to the company for its on time delivery programme. The government of United Arab Emirates also recognised the company's donation programme. It recognised the special efforts being put into by the company for working on the Corporate Social Responsibility methods.
TNT not only has achieved the local environmental and other business standards in the United Arab Emirates but more so it has achieved the international environmental standards and work standards. Only very few company have been able to achieve these standards till now in the United Arab Emirates. This has been a major milestone to cross for the company in the United Arab Emirates. This has hugely increased the credibility of the firm in the region.
People at TNT have worked very hard in the United Arab Emirates. It was a hard job for them to do good work in a new country and to earn the respect of the locals. They have been successful in doing so. The company has been successful in setting up its new base in the United Arab Emirates and then work with the same quality and efficiency that they have worked with in the rest of the world.
TNT in United Arab Emirates no works under all the ISO standards which are prevailing in the country. As a part of the company's social responsibility drive, the company in the past two years has been working on reducing its CO2 emission. (roldan) The company operates 43 aircrafts and has a massive fleet of ground vehicles all around the world. Using proper eco friendly vehicles in this regard have helped the company in achieving this objective. Moreover the company has made huge contributions in the past years to the World Food Programme initiated by the United Nations Organisation.
CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION
Corporate Social Responsibility better known as CSR refers to the internal mechanisms prevailing in a company which regulate the company's adherence to the local laws and also the company's overall responsibility to the society that the company is functioning in. This also involves the ethical functioning of the company. There should be some basic ethos of the company in which it decides that in some particular way it will show its responsibility towards the society. Once these ethics are formed then the company should make sure that they are being properly followed by its employees. This also involves the company's responsibility in using the environment. All company's function in an environment and all the human beings on earth have equal share on this environment, the truth is that to some extent the company also is responsible for depleting the environment. The company should accept its responsibility in this regard and should try to minimise its usage of raw materials or it should minimise the pollution that its activities create. In the case of TNT this can be done by reducing the company's CO2 emissions. As we know that company has a huge fleet of automobiles around the world and they create some or the other form of pollution, the company needs to minimise all kinds of pollutions created by its activities as a part of its social corporate responsibility. It is emerging in today's world that CSR oriented businesses are attracting more customers as compared to their counterparts. CSR oriented businesses recognise their responsibilities towards the community. Such businesses take all decisions regarding their functioning keeping the benefit of the society in mind. No actions whatsoever are taken should hurt the society in any way. (roldan) (Haq) The employees at TNT have two minds when it comes to CSR. Some feel that it increases the company's overall reputation and is very beneficial in the long run. Others criticise that it is against the basic fundamentals of business operating. Businesses operate to earn profit no matter how they earn such profits, CSR hinders the organisation from earning profits by reducing the framework in which the company can perform.
The term Corporate Social Responsibility is relatively a new term. It was first introduced in the late 1970's. At first the various big multinational companies adopted it. The most famous corporate social responsibility approach is community based development approach.
TNT first engaged itself in CSR in 2002 by giving support to United Nation Organisation's World Food Programme. The company had various reasons to do so.The company realised that most of the other companies around it had already started to apply the consumer responsibility approach while doing business; moreover it had almost become essential for the company to apply this method itself if it wanted to stay in touch with the other companies and face the new type of competition. (Haq) The company held many interviews with its customers and it took huge amounts of feedbacks from them and it found out that even the modern customers was preferring a Corporate Social Responsibility oriented company over other companies. This was the time when TNT finally decided to work strictly on CSR methods.
ANALYSIS & RECCOMENDATION OF THE GROUP FOR IMPROVEMENT
Post 2000 the company found out that the customers and more so the shareholders had started looking at the non profitability related performance of the company. The customers were choosing companies which could show clearly what they were doing for the society. No matter what the company did now it had to show proof of its Corporate Social Responsibility activities. The market had changed, TNT had to change itself with it if it wanted to survive.
Although it would be wrong to say at this point that TNT was not responsible towards the society before 2002. The company was performing many activities for the benefit of the society but it just hadn't given such activities the name of Corporate Social Responsibility activities. Now that corporate social responsibility has been incorporated into the system of the company, it is following all norms of proper functioning in the United Arab Emirates, and it is giving its best efforts to give the best to the members of United Arab Emirates.
TNT has been into charity since forever. In the past decade TNT has focussed its charity on the young and disabled. Charities to organisation that work on the welfare of children have been the focus for TNT. Also TNT has set up old age homes for the old and disabled. In this regard TNT came into contact with many charitable organisations and funded them hugely. (Haq)TNT give charity to institutions which work for the old aged, disabled and the physically challenged young. Moreover TNT encourages its employees to take part in various charitable activities around the world.
The staff at TNT also takes part in the activities which are organised by the institutions to which TNT gives donation. This helps the society and also assures TNT that its money is being well spent. Activities like visiting a school of disabled etc are included in such visits.
All depots are required to generate funds for charity. This helps in charity at a local level but it also helps in creating healthy competition amongst the depots. And the good part is that the competition is for a good deed.
TNT also provides free package delivering services to such disabled people thereby not only catering to its social duty in monetary terms but also in kind.
TNT has collected over 2 million dollars in cash in this regard. 2million dollars is one of the worlds highest donations given by anyone. Ever since starting back in 2002, TNT has increased the amount of donations on an annual basis. In 2006 TNT was recorded to have given the highest donation in the world.
Much of this credit is due to the extraordinary efforts being put in this regard by the staff at TNT.
From the delivery man to the managing director, all are involved in a continuous effort to do good for the society. All employees in some direct or indirect way were able to collect some amount of donation for the common cause.
Even the magazines being produced by TNT now carry information about the corporate social responsibility efforts being done by the company. It has a special page dedicated to donations in it.
TNT has created a separate donations section on its website also. The donation activities and fund raising in the same regard have been a tremendous effort by the people at TNT, in this way the company has shown to the world that it is also CSR - related.
Working on these donations issues has helped the staff at TNT create a sense of team spirit amongst them. The staffs have shown a lot of dedication in this regard. Not only is the company doing such activities in the United Arab Emirates but it is pursuing such activities throughout the world.
Now a day's whenever a question is asked to the company related to its CSR policies, the people at TNT can proudly show the good work that they have been up to and not only that, they can also prove their commitment to CSR related work methods. This has helped the company to increase its annual sales also. Since 2002, the annual overall sales of TNT have grown each year.The donation policy has increased the company's position in the media, whether local or international. People are positively recognising the work being done by the company for the society.
Corporate Social Responsibility is important because it links the company with the society. It creates a sense of belongingness both in the company and in the people.
As we have seen that TNT has been making huge contributions towards the society. It has become famous for its work in social areas by funding various charitable organisations and giving huge donations for the welfare of the aged, the physically challenged and for the young people who need support. It must be noted here that the in today's world, the stakeholders are not only the shareholders, the creditors, the debtors, or the users of the firms product. The society itself is a stakeholder now. In today's modern socialistic approach towards business, every individual of the society is a stake holder in any company. All company's should realise the fact that they owe everything to the society and hence it is their duty to return back the favour to the society by being responsible towards them. This is where Corporate Social Responsibility comes in to the act. Corporate Social Responsibility should be applied to the firm at all levels. TNT should do for the local societies of the various cities it is operating in and at the same time it must make a general effort towards serving the society on a world basis. Some people believe that many companies adopt Corporate Social Responsibility methods to gain popularity, it helps them increase their sales, but from inside they re not interested in serving the society, all they care about is earning money. Moreover there are also companies who seem to promote sustainable development and they show that they are very responsible to the society but there is no possible way to check their commitment towards the society. It must be noted here that all the work being done by any company around the globe for the society must be in verifiable and measurable terms. Due to the recent economic meltdown in the United Arab Emirates, the overall business of TNT in the region had seen a slowdown. Although the company has recently reported than in 2010 its business figures have improved from the previous year. Due to the slowdown in business the company was also forced to reduce its corporate social responsibility related efforts. Although now the company promises to be back in action with the same zeal as before. It is to be noticed here that the country as such has still not recovered fully from the economic meltdown but TNT saw a substantial increase in it business in the last 3 months. The company officials were unable to pinpoint the sudden increase in the business as the general conditions in the country were nearly the same in the last 3 months as they had been before. TNT is planning to set up a partnership with one of the already established mailing service providers in United Arab Emirates. Some people may not agree to this step being taken by the company as it has been performing on its own mostly in all the countries it has set up a base in. People at TNT believe that the market in the United Arab emirates is a very big and potential market hence it needs to be handled in a special manner. By collaborating with one of the already established company's TNT could have tremendously increased profits. Critics have been worried that the company's efforts towards the society may get hindered if it collaborates with some other package carrying company. Although TNT officials say that they will only collaborate with a Corporate Social Responsible company. TNT officials are realising the strength and the potential of the mailing business in the United Arab Emirates. Recent reports suggest that the officials at TNT agree that the market in United Arab Emirates has as much potential in it as the market in United Kingdom or for that matter country like Germany and France. TNT is seeking permission to release its shares in United Arab Emirates. Efforts in this regard are being made by the top management of the company which are concerned with the United Arab Emirates division of the company.
One must agree that it has become vital for TNT to adopt Corporate Social Responsibility in a complete manner for the company's overall benefits. The market conditions all around the world are becoming more and more society oriented and no company can possibly ignore this fact. All company's around the world must agree to the basic features of corporate social responsibility. Every company then may adopt its own version of the same based on its own convenience and based on the type of environment it functions in. No company today can possibly dream of surviving in today's market without strictly following the social laws of the country they are working in. TNT has been successful in this regard. TNT has successfully managed its corporate social responsibility agenda. It has been successful in adhering to all environmental and social laws for business operation in the United Arab Emirates. TNT is slowly recognising the huge strength of the mail market in the United Arab Emirates and in the coming years the country will surely be subject to more good deeds from the company if it wishes to set up its base in it.
- Why should companies engage in CSR?,( n.d.). Retrieved on May 3, 2010 from http://www.scribd.com/doc/3934672/Importance-of-CSR-to-Business
- TNT in UAE, (n.d.). Retrieved on May 3, 2010 from http://www.arabiansupplychain.com/article-3422-tnt-awarded-four-quality-certificates-in-uae/