CSR is how companies control their business processes to provide an overall positive impact on society. There are many factors that determine how socially responsible a business is, but alongside these are the benefits and costs relating to the level of CSR produced in this essay, I will be analysing companies from the retail industry and a car manufacturer to discuss the potential costs and benefits to both business and their stakeholders of CSR.
The Body Shop is well known for being an extremely ethical company. Because they do not use any ingredients that have been tested on animals, they have to pay a higher place to suppliers for these products than Primark for example, who pay an extremely low price for their stock. Because of the
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This will also help the environment that people are growing up in to become a more pleasant place to be. It also gains customer loyalty which will be a positive, especially in the long term if the car industry does deteriorate. However, the long term strategy has already taken 20 years and there is still an uncertainty surrounding how much longer this project will take to be completed. There is also the point that no other car manufacturer has ever produced a car that will only emit water vapour, so there is no proof that this is actually possible, which could prove to be a waste of time and money for BMW.
The main factor that the stakeholders of a business are interested in is the amount of profit that is produced, which can then be paid to them through dividends. If a percentage of the profits are being paid out to aid CSR in cases such as community projects, then less money is going to the stakeholders. This point makes having CSR present in a business costly.
However, there are a huge number of benefits which I feel outweigh the main cost and once major point that needs to be considered is the extremely positive reputation businesses can build up which will likely lead to customer loyalty. In the long term, this will be extremely helpful to the business in the case of the economic climate falling as the level of demand will not decrease to the extent of making a significant difference to
Corporate Social Responsibility (CSR) encourages companies to take interest of all stakeholders into consideration during their decision-making process and not make their choices based solely upon the interest of their shareholders. By bring socially responsible, the company would make choices that protect social welfare which can have an impact on the buying decisions of the customers and building a reputation for the company as to whether the company is trustworthy or ethical.
Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social
CSR is about how companies manage the business process to produce an overall positive impact on society
The purpose of this essay is to research the notion of CSR and uncover its true framework and outline what social responsibility truly means to corporate organisations, and whether it should be seriously considered to be a legitimate addition to the corporate framework of an organisation.
CSR is all about businesses understanding the effects that they have on the community/wider world. Businesses will use this impact in a positive way to
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.
In this article, “The Truth About CSR,” authors Rangan, Chase and Karim stress the importance in aligning a company’s social and environmental activities with its business purpose and values (Rangan, Chase, & Karim, 2015, 41). Outcomes of CSR programs should be a “spillover” and not a primary focus of a business, expressing concern towards social responsibility and corporations failing to contribute to society accordingly (Rangan, Chase, Karim, 2015, 42). There is a great deal of importance in companies refocusing their CSR activities on a primary goal and in providing an organized process for bringing consistency and discipline to CSR strategies (42). Rangan, Chase and Karim want corporations to understand why it is important for them to evaluate their CSR activities and refocus them towards the goal of reinforcing the firm’s societal and environmental actions, while also ensuring their actions add to the overall purpose and values of the corporation. According to the authors, even though
Even though customers are a major key to success of any business, limiting CSR practices to an external group of stakeholder is insufficient. From the customers’ side, the focus is “on the corporate brand and its societal relationships with external constituencies.” (Lacey, Hensel 316). It is undeniable that implementation of CSR can attract the customers and lead them to be a significant are source of a financial gain. That is because CSR changes the way consumers behave in the market and alter their beliefs toward the company standards.” (Lacey, Hensel 316). Nevertheless, extensive focus on the social gains may cause the business to suffer financially. If that happened, the case is considered to be a failure of executing CSR. Again, this is a result of shifting all the business gears to benefit a sole group the stakeholders.
Corporate Social Responsibility is described as being a company’s ethical, economic, environmental, social and legal attitude towards its stakeholders in order to establish long-term success (Crane at el, 2008). These issues have come to have an important role in the running of a business in recent years. CSR was developed over a number of years and has been researched by professional economists. There are many arguments in favour of and against the CSR strategy. A company that adopts and operates the CSR can gain control over a variety of sectors, including shareholders and stakeholders. In brief, businesses can generate maximum profit and reduce potential risk by adopting the CSR strategy
The concept of Corporate Social Responsibility is a relatively new in the management field and there is no single definition of it since everyone’s interpretation of the term is different. “Corporate Social Responsibility means something, but not always the same thing to everybody.” (Votaw, 1972, p.25) and from my understanding of the concept, CSR to me is “The voluntary business activities within the boundary of law that contributes to the wider community for a more sustainable environment”. Since everyone has a unique interpretation of CSR, the range of relevant CSR practices across businesses has been quite diverse as there is no such thing as features of CSR (Marcel van Marrewijk, 2003). Rising environmental and social concerns in
CSR ARE A COMPANY’S FRAMEWORK WITH EXPECTATIONS AND DEMANDS OF STAKEHOLDERS-NOT ONLY CUSTOMERS AND INVESTOR, BUT SUPPLIERS, EMPLOYEES AND SOCIETY ( BEAL, 2013)
CSR is about how companies manage the business processes to produce an overall positive impact on society.
This present paper tries to enhance the different views about CSR, in the global vision of all the stakeholders, in the particular context of retailing. We will treat the interest for a company to deal with responsible actions and activities, and the main breaks found by certain authors. The subject is treated in relation with marketing strategies and tries to persuade the readers that CSR is a good solution to gain competitive advantage.
Menananggapi fenomena ini, pada tahun 1976 1976 di Brighton, Southern England seorang wanita berkebangsaan Inggris yang bernama Anita Roddick membangun bisnis sekaligus memperjuangkan nilai-nilai kemanusiaan lewat produk yang dikembangkannya. Anita menyuarakan kepedulian sosial dan kepedulian lingkungan dengan berkomitmen tidak akan melukai makhluk hidup di atas bumi ini. Pernyataannya tentang against animal testing itu benar-benar diwujudkan, bukan cuma bermain kata-kata. Bahkan setiap tahun The Body Shop membuat laporan kerja penanganan lingkungan yang dipertanggungjawabkan kepada stakeholder. Misi dari The Body Shop adalah untuk mendedikasikan bisnisnya dalam melakukan perubahan sosial dan lingkungan ke arah yang lebih baik.