The Importance Of Corporate Social Responsibility

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Corporate Social Responsibility Corporate Social Responsibility is a nature of a business to behave well and produce a general positive impact on society. This term was first generated in 1953 by H.R.Bowenes while widely considered as an important subject for business especially large firms who perceive CSR report equally as financial report, both of which are the topics the stakeholders or owners are interested in. In reality, Firms are not forced to behave as the public want to be because the CSR is quite ambiguity that we don’t know what the firms are responsible for and how far should this responsibility be. Firms before doing CSR may take a lot of considerations as this would be a cost to business if something went wrong or could be a benefit to profit when something is actually done and customers are aware of it. Thus, a theory introduced called the Triple Bottom Line by John Elkington gives an idea about balancing doing CSR and achieving market profit. http://buss4csr.blogspot.co.uk/p/theory-related-to-csr.html It is no doubt that earning profits is the primary concern for most of the firms while actions of the two top responsibility can be seen as cost to firms. Balancing these three things seems unavoidable. The relationship between profit and environmental should be in a viable manner which urge firms like L’oreal to press concern to reduce the level of pollution and waste or the use of toxic chemicals in manufacturing process. For example, sub-brand of L’oreal called Garnier has launched a shampoo in 2011 Ultra Doux and Fructis ranges with 94% biodegradable formula. The research are still ongoing. The balance between social responsibility and economic gains is much more complicated which deal with the supply con... ... middle of paper ... ... that the department is divided in terms of divisions and geographical zones. As for corporate social responsibility, the corporate are paying effort to be a responsible corporate citizen such as an announcement about reducing carbon footprint at a desired level before 2020. Despite the fact of ugly issues of animal test in China, they are trying to develop a safety test and urging Chinese authorities to replace such requirement. This also translated that though the triple bottom line can deliver an ideal position among CSR and profit, sometimes there may be some unavoidable restrictions by external factors to choose CSR whether profit where the typical cases are the body shop and other sub-brands of L’oreal related to China market. Since China takes up significant sales in total, L’oeal would still keep this market in mind no matter what the Chinese policy is.
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