The Importance Of Corporate Social Responsibility In Business

1) Triple Bottom Line: Corporate Social Responsibility is to ensure that an organization takes the right measures to be responsible and contribute positively to the environment and communities that they work in. In many organizations, the Public Relations department handles the relationships between the company and its internal and external environments. This boosts the company’s image. (Ghadban,2010)

A tripe bottom line is used to measure three things. These three measures include:
• Profit – the economic value of the company or the economic benefit to the surrounding community and society
• People – the business practices regarding labor and the community in which the business is conducted.
• Planet – the use of sustainable environmental practices and the reduction of environmental impact. (Investopedia, 2014)

For example, workers of the California plant of Interface Carpet go to a local landfill and retrieve garbage. They do this because of their initiative ‘the dumpster dive’. Once they are done, they take these items to their plant and come up with ways of which they can use it. Other than this, Interface Carpet leases the carpets to their customers instead of selling them. They maintain the carpet when it is leased to the customers.(Laff,2009)

2) Human Resource: The most important challenge that global companies face is to respect other cultures and environments and form a social consciousness. 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 ...

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...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. (McElhaney,2010)

4) Risk Management: CSR for a global company is related to corporate risk management through two means: by providing intelligence about what those risks are and by offering an effective means to respond to them. The key to both is to manage stakeholder relationships more effectively. This is important for global companies because if they do not effectively manage those relationships, stakeholders will engage these companies in the court of public opinion with little or no say so by companies. (Kytle,2005)