Corporate Social Responsibility On Firm's Financial Performance

Based on my interpretation of CSR, I see it as a voluntary obligation that companies have promised to their stakeholders to fulfill by improving, or at least not harm, the environmental and social wellbeing. When companies engage in CSR, they voluntarily promise to, for example, carry the responsibility to protect the environment and take actions against bribe or other corruptive activities related to their business. It certainly has some positive influences to specific areas based on my knowledge gained from other classes; nevertheless, when judge CSR in the context of total impacts on our society and environment, it is obvious that CSR has failed its mission to lessen the negative impacts of business based on the evidences that provided by the author. Also, since there is a strong positive relationship between CSR behaviors and consumers’ reactions to a firm’s products and services, it seems to me, now, that CSR for the most companies is just a fancy cover that helps them to create or promote a good image and reputation. The recent case that shows the failure of CSR of Volkswagen even make me believe that CSR programs may be just a marketing or public relation exercise for many

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

Today when competition has reached its peak, anything that gives competitive advantage is a matter of concern for the corporations. In such a situation, when businesses have realized that they owe something back to the society and nature, corporate social responsibility (CSR) has become a priority on the agenda of the corporations. Giving back to the society and conserving the natural resources for a better future leads to the sustainable development in and around the

Many firms’ corporate social responsibility (CSR) efforts are counterproductive, for two reasons: They pit business against society, when the two are actually interdependent. And they pressure companies to think of CSR in generic ways, instead of crafting social initiatives appropriate to their individual strategies. CSR can be much more than just a cost, constraint, or charitable deed. Approached strategically, it generates opportunity, innovation, and competitive advantage for corporations—while solving pressing social problems. How to practice strategic CSR? Porter and Kramer advise pioneering innovations in your

Forbes Magazine Entrepreneurs segment published an article “Why CSR? The Benefits Of Corporate Social Responsibility Will Move You To Act”. The author of the article Devin Thorpe, connected with several corporate executives representing small and large organizations from an array of different industries in efforts to establish if CSR does in fact benefit a corporation. Based off his discussions with these business professionals and experts, Devin concluded the following:

First, what is CSR? CSR is corporate social responsibility, which “refers to business practices involving initiatives that benefit society. A business 's CSR can encompass a wide variety of tactics, from giving away a portion of a company 's proceeds to charity, to implementing "greener" business operations” (Sammi Caramela). “Corporate social responsibility is a corporation’s initiative to assess and take responsibility for the company’s effects on environmental and social wellbeing. The term generally applies to efforts that go beyond what may be required by regulators or environmental protection groups” (Corporate Social Responsibility).

Capitalism is dominating the lives of today’s world and people do not even realize how they are being swindled. The civilians of the modern society do not acknowledge how they are being used as assets to make bottom lines for the world’s most competitive companies. With so many corporations and businesses running, there is a neverending race of who can get the most consumers and profits. For companies to attract investors and customers, they use CSR, or corporate social responsibility, to gain advantages in the business industry. Corporate social responsibility is when a company decides to do certain activities to help improve society . CSR consists of different types of categories which are philanthropy, ethical labor practices, and the environment. Throught the decades, there has been a constant debate that concerns how beneficial and helpful corporate social responsibility really is. Some people argue that CSR can let a company make profits and help the general public at the same time, but others suggest that companies who use CSR are only prioritizing their self interest and wealth. Therefore, a company cannot be socially responsible while simultaneously making a profit because corporate social responsibility is used as a way to avoid government regulation and to greenwash a company’s reputation.

In recent years, there have been a growing number of companies that have an explicit Corporate Social Responsibility (CSR) plan. As stated by European Commission (2001), CSR is defined as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” It is believed that the motives for CSR are gradually converting from philanthropic rationale to performance-driven orientation, but the question of better company performance resulting from the implementation of CSR has often been the centre of debate. The purpose of this paper is to examine how CSR can positively contribute to company performance, which refers to the quantitative

Hot debates were arose everywhere in the society about the extent of Corporate Social Responsibility (CSR). Mallen Baker (2004) states that CSR is about how companies manage the business processes to produce an overall positive impact on society. Supporters of CSR claim that Businesses and Corporations are not only about making money especially for big business. They should show social responsibility, moral standard and city spirits to the community. They should give something back to the society. Critics argue that Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners by

First of all, the company will establish a better reputation that is essential in order to access financial recourses and to get permit by government (Hamman, 2003, p23). A positive relationship between Corporate Responsibility index and corporate reputation is illustrated by Lewellyn (2005). In addition, the high reputation of organization will attract highly qualified skilled employee to work for the company (Hamman, 2003). Moreover, according to the result of CSR Europe’s 2000 study of consumer attitudes toward CSR in 12 countries, Grills &Spring (2001) confirm that one fifth of consumers prefer to but products which are responsible for socially and environmentally. Secondly, successful use of CSR can result in long-term stability (Lewellyn, 2005). According to Lewellyn’s (2005) opinion, companies that have a visible approach to corporate responsibility are

CSR is a “corporate initiative to assess and take responsibility for the company’s effects on the environment and impact on social welfare” (Investopedia) through the implementation of “actions that appear to further some social good, beyond the interests of the firm that which is required by law” (A. McWilliams, 2006).

Corporate Social Responsibility can be defined as a company’s responsibility to ensure ethical business behavior, contribution to the economic development of a country, improve the lifestyle of its own workforce and their family members, betterment of local community and overall society. It is some small amount of cost done by the company which effect can’t be seen in the present but in long term it promotes positive image for the company. Successful CSR program can take a company beyond government regulation and legislation. It is a sustainable program which a company can easily run with its other activities. It mainly defines areas of concerns and initiatives which can improve the relationship of customers, shareholders, suppliers, competitors and other stakeholders with the company.CSR helps to achieve organization’s objectives and guide a company toward what the company stands for and how it satisfy its consumers. CSR can also define in three words that are People, Planet and Profit. People represent fair labor practice and betterment of the community where it operates. Planet represent environment friendly business practice and last of all Profit refers to organization’s economic value created after deduction of all the costs from the revenue including capital costs. Now a day CSR is regarded as a tool for building brand equity through customer loyalty based on distinctive ethical values. CSR is also criticized by some critics. According to their

Corporate social responsibility has many positive influences as it promotes the organisation to act ethically which results in enhancement of relationship between customers, suppliers and workers. As they say, ‘Charity begins at home’, the first duty of the management is to ensure that all individuals associated with the company are satisfied and involved in advancements to differentiate the company from the competitors. Also corporates should practise ‘CSR’ in order to increase customer retention because it is strongly supported by the public and the company gets media exposure which gives a good reputation and benefits the company in the long run. According to Shrivastav(2014), ‘A 1997 studies by two Boston College management professors found that excellent employees,

While corporate social responsibility (CSR) has existed for a long time, it has garnered attention only in the last two decades as an important aspect of doing business. Academic research on CSR has evolved over the years, indicating a change in how CSR is viewed as time goes by. In the earlier years of

Access to capital enables a company to grow and make timely investment. Companies with good CSR standing are likely able to secure equity and debt capital with most ease. The growth emphasis in Socially Responsible Investment (SRI) is a clear indication of likely future trends