The Benefits And Importance Of CSR In Business

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Recommended: Nature and concept of corporate social responsibility

The business sector is facing the concept of CSR wherever it turns these days. On a wide variety of concerns corporations are encouraged to behave socially responsibly (Welford & Frost, 2006:167). The name CSR has existed for over seventy years. The concept and definition is studied in many countries and it is debated in academia around the globe. However, CSR is not a generally accepted practise as it is interpreted differentially despite rising importance of its implementation into business activities. This unclear definition is complex by the use of uncertain terms and creates uncertainty and confusion within the business environment. In both the corporate and the academic environment there is no consensus as to the definition of CSR (Jackson …show more content…

Organisations invest their retained earnings into CSR activities and in return expect the maximum return for taking on minimal risk. According to Tsoutsoura (2004:6), ‘being socially responsible should have bottom-line benefits in order to be sustainable‘. There are numerous benefits as being tangible and intangible from CSR (Jenkins, 2005:526). CSR is an important tool for organisations to utilise, because it leads to various benefits. The brand image and overall reputation of the organisation that implement CSR activities are much higher compared to those that do not (Jenkins, 2005:526). According to Tsoutsoura (2004:6) CSR endeavours may lead to a reduction in a organisation‘s operating costs. For instance, an important CSR goal is to reduce environmental pollution. This may be realized by applying measures and systems such as reducing wrapping material, electricity consumption, toxic air pollutants and planning optimal routes for delivery trucks. Approaching CSR from this perspective creates a strong incentive for organisations to increase their CSR activities and

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