Importance Of Corporate Social Responsibility

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Corporate Social Responsibility Introduction In each society, corporations and companies have to answer to two aspects of operations; the quality of their management, this being in terms of people and processes and the nature of and quantity of their impact on society in the various areas. Corporate Social Responsibility has been defined much more in terms of philanthropic model whereby in the United States, on making profit and fulfilling their duties to pay taxes, a company contribute a certain portion of this profit to charitable causes. The definition of corporate social responsibility according to the World Business Council for Sustainable Development in its publication “Making Good Business Senses” by Lord Holme and Richard Watts, is a business’s continuing commitment to its behaving ethically and contribute to economic development and at the same time improving the quality of life of the workforce and their families as well as of the local community and society at large. Importance of Corporate Social Responsibility Moskowitz (2008) wrote that due to a rise in corporate scandals and the tightening of standards of carbon emissions in the past decade, investors have been forced to evaluate the environmental, social and corporate governance risks within their businesses. This has in turn forced businesses to respond to the demands placed on them by their investors and re-examine the way they do business from the reduction of emissions and conservation of energy to practicing fair trade and standards of labor (Moskowitz, 2008). According to the DEG Investitions publications, there are various motives behind organizations taking part in corporate social responsibility. It is viewed as part of corporate strategy whereby it is out... ... middle of paper ... ..., 2010). By making it compulsory for business firms to disclose their political activities, one can imagine that they will be eager to differentiate themselves as being politically clean in the eyes of their clients. This will in turn mean that market competition will underpin instead of hinder the political world (Lyon, 2010). Conclusion In conclusion, the process of setting up a CSR program requires collaboration between the company or corporation setting up the program, the community that is to benefit from the project, the Non-governmental organizations that knows the pressing issues that the community has both in the long term and short term and the government so as to be a success. The corporation working alone will not be able to achieve their main purpose which is to reach out to a large number of individuals of the community or the community in general.

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