The Importance of Corporate Social Responsibility on Global Business

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

The final area that could be improved regarding the company’s attitude toward social responsibility is to offer a larger selection of health-conscience and organic products. Though these products come at a higher margin, the requests made by consumers show a demand for products of this type. By offering a better selection, Company Q demonstrates concern for the health and well-being of the community attracting new business and increasing profitability which by definition is socially responsible.

Corporate Social Responsibility is a philosophy that relates to a business being a part of the society, so acts in a way that not only advances its own firm but also serves the society as well. Good ethics is the cornerstone of sustainable development. In the long run, unethical behavior may harm customers and the society as a whole. Furthermore, it damages a company’s image, efficiency and effectiveness in operations. In some extreme cases, it may jeopardize the company’s survival. As a matter of fact, the behavior of a firm will be judged by the groups of the society. Their judgments and responses will have an impact on the performance of the

Corporate Social Responsibility refers to a company’s sense of responsibility towards the community and environment in which it operates. Companies express this citizenship through their waste and pollution reduction processes, by contributing educational and social programs, and by earning adequate returns on the employed resources. CSR is also considered as a strategy to create, develop and sustain positive company reputation and brand images.

• Companies do not pay the full costs of their impact. For example the costs of cleaning pollution often fall on society in general. As a result profits of corporations are enhanced at the expense of social or ecological welfare.

Every corporation or company is in the business of making a profit. The market is a huge contributing factor that drives corporations to either be socially responsible or not. If making a profit was not a factor, most people would want to be socially responsible because it’s the right thing to do. We will discuss the meaning of corporate social responsibility, how the environment affects the decisions of being socially responsible and my personal experiences.

These three strategic components can lead to successful CSR practices that improve the company’s image and profits, satisfy its stakeholders, and make a positive difference with regards to its social or environmental concerns. While the definition of CSR varies within the literature, I suggest that a customized CSR process that incorporates CSR fit, stakeholder engagement and strategic communications will lead to successful CSR practices.

There has been a seismic shift in how companies market themselves and their respective goods and services. The primary reason for the shift seems to be a changing consumer base; one that incorporates social, environmental and ethical issues into their buying decisions. Pressure from these more socially conscious consumers has driven companies to adopt more robust corporate social responsibility (CSR) strategies in order not only maintain customers but garner new ones as well. It now seems that in all most every advertisement there is some mention of the company’s CSR endeavors. Over the last few decades major corporations have shifted their focus from one of a mostly profit driven focus to one in which CSR has become

They’re no longer hidden from how their food is produced or how their iPods are made. And, because of things like social media, like-minded people more easily find each other, have their say and effect change. There’s a level of transparency that wasn’t there before.” (Wharton) Therefore, businesses have to adapt to what the consumer wants and a study by Landor found “77% of consumers say it is important for companies to be socially responsible”(Penn Schoen Berland, march 29 2010)

Warren Buffet said that it takes 20 years to build a reputation and only 5 minutes to ruin it which means he mentioned the activity of the corporations here. In accordance with Buffet’s dialogue, business should be responsible to the society, environment and towards a sustainable developed planet. Many names are used to mention CSR such as socially responsible business, responsible entrepreneurship, corporate citizenship, corporate accountability or corporate sustainability etc. Corporate social responsibility is the continuing commitment by business companies to behave ethically & contribute to economic development and simultaneously improve the standard of life and quality of life of the workforce & their families, local communities and the society according to the World Business Council. For example - Eradicating extreme poverty and hunger, facilitating primary education, promoting gender equality and empowering women, reducing child mortality, making policies for the improvement of maternal health, HIV/ AIDS, Malaria & other fatal diseases, ensuring

Companies are under scrutiny from consumers and from the government and CSR initiatives are expected from companies. Investing in CSR will gain respect from people and consumers will be more likely to support companies who show that they care about issues they care about. Employees can defend the company to local communities and in the media and give the company good exposure by talking about their CSR activities. A good reputation can lead to higher sales and can attract new customers. Companies can attract talented employees by offering them a company that they can identify with and that shares their views on being a benefit society. This identification with the company will create an emotional attachment to the company. Employee loyalty will increase and they will want to remain with the organization and the company will save money due to decreasing employee turnover. An example of this would be Market Basket. The employees believe that the company is serving the community by providing jobs and economic growth, supporting local farms and vendors, and providing the best prices for

These types of practices can prove very effective in lowering costs and increasing efficiency within the company. CSR practices also make firms look more attractive to stakeholders by creating less of a risk factor. Organizations engaged in CSR practices signal that they are committed and willing to meet stakeholder demands and communicate better throughout their company including investors, shareholders, employees and customers.

The World Business Council for Sustainable Development (WBCSD)[4]: " Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while

The idea of a perfectly clear and all summative definition and concept of corporate social responsibility (CSR) has been a much deliberated and controversial one. So aged has been this deliberation that Votaw and Sethi (1973) depicted it as a brilliant term; which rightfully means something, but not always the same thing to everybody. The research of Marrewijk (2013, p.95) elaborated on the intensity of this unending debate among academics, consultants and corporate executives which results in creating, supporting and criticizing of different concepts. I believe corporate social responsibility are voluntary actions by establishments, enterprise or industries towards a specified region, individuals or society within its locality of operation that yields different forms of development or growth. Such actions usually have a positive effect on the enterprise.

Despite being costly to businesses from one end, these businesses understand the risk that lack of CSR can have especially in damaging their reputation. The negative image associated with the company will result in boycotting their products or lack of appeal in them which hurt businesses. In order to effectively manage CSR, businesses have realized that the traditional tools are failing in the delivery of goals and new tools have been devised for the same.