The Benefits Of Corporations And Corporate Social Responsibility

Corporations and Corporate Social Responsibility

- The potential benefits of undertaking social responsibility

The traditional corporations usually operate without giving any consideration to social responsibility, as stated by Friedman, M. (2007), “The Social Responsibility of Business Is to Increase Its Profits.”. However, the practices of modern corporations provided opposite opinion. Regarding that the broad masses of the people demand corporation’s contribution to society, Corporate Social Responsibility(CSR) starts to attract more attentions from the corporations, according to Sarah E.(2012), “the percentage of companies reporting on their CSR initiatives from 2008-2011 rose from 74% to 83% in the U.S., from 62% to 79% in Canada, and

One of the most significant incentives as to why corporations regard CSR as important, is that undertaking social responsibility has the possibility to give the corporations a promising long-term future. Although the effect might be various and uncertain, the reward is worthwhile for the corporations to put in the effort to contribute the society. A prime example had been made by Coca-Cola that this corporation has spent $118.6 millions on health research and fitness partnership since 2010, as reported by Fortune(2015), the noticeable fact is a sizable proportion of funds were invested in controlling obesity for the following decade. There are many reasons for Coca-Cola to control obesity, regarding that sugar-sweetened

(2011). Therefore, it would not be surprised that as stated by GivingUSA(2015) the year of 2015 corporate giving approached $17.77 billion, increased 13.7 percent comparing to the year of 2013. The increasing trend of charity indicates that general public has positive expression about the product of those corporations who are more likely to take social responsibility. For instance, in the case of the Drinkable Book, as reported by Begley S.(2015) “Dr. Teri Dankovich, who developed the drinkable book, says it is intended for use in developing countries where contaminated water poses major health risks. ” apparently the consumer of the Drinkable Book is people who are living in developing countries. Although this product does not apply to mass production yet, the pre-marketing of this product was already succeeded in advance. Despite how the Drinkable Book actual works, general public take more notice of the contribution that this corporation will make for the human society. There is also a counter-example about how corporate social responsibility affects the marketing of corporations, the consumption of whale meat in Japan is often controversial, Japan consume as reported by UMEMOTO M.(2015) a major supermarket chain operator acquired by a foreign company