The Importance Of Corporate Social Responsibility On The Environment

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Introduction In the recent years, there have been news of the increasing number of natural disasters such as earthquake, tsunami, forest fires, tidal waves, storm etc. that had affected the environment largely. Today, people come forward as concerned citizens to spread environmental awareness towards living a healthy life. Lately, numerous strategies have been in practice to counteract and alleviate environmental harm that the business organizations have on the society like social responsibility accounting (SRA), environmental accounting, environmental reporting and disclosures, environmental management system (EMS), and environmental tax (Patten, 1992; Vehmas et al., 1999; Ekins, 1999; Darnall et al., 2000; Patten 2002; Mullinkin et al., 2005; Unerman and O'Dwyer, 2007; Jones, 2010). These strategies are consistent with the idea of corporate social responsibility (CSR) that businesses must have a responsibility towards the society as citizens or stakeholders (Abbott and Monsen, 1979; Deegan, 2004; Unerman and O’Dwyer, 2007; Mahadeo et al., 2011). In this research paper I will highlight whether business organisations benefit from corporate social responsibility in terms of company’s image, employee’s motivation and financial performance. In other words it means that if the companies follow CSR, they will enjoy a better corporate, financial and social atmosphere. This study is organized as follows: the first section contributes to a deeper understanding of the concept, corporate social responsibility (CSR). In the later parts a brief literature review about the relation of CSR with company’s image, employee motivation and financial performance of the company with findings and theories is presented. The last section includes the con... ... middle of paper ... ...in terms of company’s image, financial performance and employee motivation. The paper includes three main findings: Firstly, it is depicted from the study that there exists a partial positive relationship between the profit maximization shown by the market price per share and CSR from 2003 to 2009 as shown in table 1. The findings indicate that financial performance of the chosen firm has been positively influenced by investing in CSR. Secondly, corporate social responsibility also benefits the company when it comes to company’s image. Thirdly, CSR reduces the employee turnover and largely motivates the employees. This research paper concludes that the industries must rely on corporate social responsibility practices in order to survive the environmental, social, economic and corporate factors and become responsible towards their role that they play in the society.

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