Corporate social responsibility (CSR) is the consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks. (Peng, 2012). According to World Business Council for Sustainable Development (WBCSD, 1999), CSR is an organization’s commitment to a discretionary behavior that leads to economic development and contributes to the welfare of its employees, local community and society at large. (Ilona, Kazlauskaite, 2011). Corporate Social Responsibility (CSR) has become very important in that it become a strategic issue that spans across various departments of a firm.
However, the consumer and investor in us seek out best deals and the highest returns (Reich, 168). CSR is a strategic attempt for a company to increase brand identification and to provide consumers with another reason to choose their products. Certain consumers, who we believe to be the minority, may be attracted to the philanthropic goals of corporations, such as egoists or those prone to dispositional empathy. However, we believe that prosocial behavior does not undermine bargain-hunting. Competitive pricing, convenience, and quality will ultimately produce more allure to consumers than CSR initiatives.
Customer social responsibility can build the loyalty and trust that both ensure a bright and sustainable future in business. In our global society, corporations are becoming increasingly visible, and are judged on their results and behaviour. The reputation of a brand is achieved, in part, as a result of corporate governance. By integrating corporate social responsibility into your business as a core value, you are contributing to a better society and will be recognized for doing so. Businesses can increase their CSR by supporting public expectations, focusing on long-run profits, complying to ethical obligations, boosting their public image, bettering the environment, discouraging further government regulation, balancing responsibility and power, remembering stockholder interests, and building a superiority of prevention over cure.
Taking risks to initiate business strategies has now become more interesting due to attachment of social responsibility of firms. That is, it highlights the focus of interest of firms as to their initiative to take action in social and environmental concerns within and out of firm’s premises. Edersheim and Drucker agreed upon effective business strategies “embraces external realties and opportunities and provides the context to help ensure that every decision, priority, and allocation of resources is geared to value creation (2007).” Thus far, corporate practices which affect the well-being of societies in turn must also be reversed; as such, the society’s concerns which affect corporate activities must also be the source of company practices towards social responsibility. The free market approach is affected by the consumer needs and also the demands in the market. Without interference from the government, the buyers and sellers can mutually consent on a price of the product within the market.
This is imperative for any business that operates in any field or industry to include in its portfolio (business) the social, environmental, economic way to improve productivity, save his image and the reputation of its products on the market for acquisitive competitiveness. Today global warming, repeated financial scandals, controversy over the ethical behavior of leaders and the globalization of trade, few people still doubt that the company, as an entity organized and localized at the heart of contemporary social and economic change is a social affair. The idea of social responsibility of business, acronym CSR meets this challenge, proposing the integration of social, environmental and economic activities of companies. This implies that the company must not only accountable to its shareholders and maximize profit, but also to realize the human society of the social and environmental impact of its activities. The concept of CS... ... middle of paper ... ...e indicators for example -Act: we standardize one act to improve it.
These are related to Corporate Social Responsibility. The CSR plan can increase shareholder value as well as boost employee engagement and brand recognition. The Human Resource departments play a huge role in ensuring that the company adopts the Corporate Social Responsibility programs. Human Resources can manage the CSR plan ... ... middle of paper ... ...te causes and opportunities, consistently communicating a simple strategic message will add value. This means integrating the CSR message with the core branding strategy externally to consumers as well as a clear consistent message internally to the employees and externally to potential employees, suppliers, retailers, governments and communities.
Introduction 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 integrated into their business culture.
DUNCAN, P, 2000, 'Corporate Responsibility – A Shell View ', The Sydney Papers, ' Autumn 2000. 2. FERGUSON, A, 2006, Corporates See the Light, Business Review Weekly, 29 June 2006. 3. MANN, S, 2003, Economics, Business Ethics and Law, Sydney, Lawbook Co, p 87.
Corporate Responsibility Corporate Social Responsibility is looked at as corporate citizenship, or responsible business. It is an organizations example adopted by businesses that want to improve their organizations, communities and more. It is a self regulating system that makes the organization commit to follow the laws of business and maintain a high ethical standard. Many times, corporate social responsibility results in businesses committing themselves to certain social goods, or even an attempts to approve the environment. Corporate Social Responsibility is a organizations promis... ... middle of paper ... ...ut will ultimately have a effect on the world.
It is generally about how companies earn their profits. It takes employees of integrity and appropriate organizational structures to realize good CSR strategies. It is a matter of both individual and institutional ethics. It’s amazing how much power a company can have in a community and the national economy. Many large corporations are devoting serious time and money to environmental sustainability programs and various social welfare initiatives that would benefit employees, customers and the community at large.