What is Corporate Responsibility

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What is CSR? CSR or Corporate Social Responsibility indicates the actions or conducts that have strategic importance to companies. CSR has been defined as a company’s efforts or obligations in reducing and getting rid of any detrimental effects on the community and maximizing long-term beneficial effects to the company and community in which it operates (Mohr et al, 2001, cited Trendafilova et al, 2013). CSR usually starts with the general emphasis that businesses are not only responsible to generate economic returns for shareholders, but are also responsible to the environment and to other stakeholders. This is usually known as the “triple bottom line” – the company’s returns for investors, the environment and stakeholders (Markley, 2014). In today’s modern business environment, CSR is undoubtedly important because whenever possible, customers would like to purchase goods from companies they trust; suppliers want to develop business partnerships with companies they can entrust; employees want to work for companies they have a high regard for and NGO’s want to work with companies seeking possible solutions in areas of common concern. Pleasing each of these stakeholder groups enable companies to maximize their obligations to their shareholders who gain most when the needs of other stakeholder groups are met (Waldman et al, 2010). Nowadays, almost every modern company is doing CSR. Why? What are the advantages that these companies actually perceive when considering doing CSR? Well, one of the main benefits that these companies perceive is that it improves the company’s reputation and image. Companies that do well with regard to CSR can enhance and build their reputation whereas those that perform badly can damage the brand and comp... ... middle of paper ... ..., D.J., & Harris, K.E. 2001. Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Journal of Consumer Affairs, 35(1), 45-72, Cited by Trendafilova, S., Babiak, K. and Heinze, K. 2013. Corporate social responsibility and environmental sustainability: Why professional sport is greening the playing field. Sport Management Review. • Tsoutsoura, M. 2004. Corporate social responsibility and financial performance. • Vogel, D. 2008. CSR Doesn't Pay. [online] Available at: http://www.forbes.com/2008/10/16/csr-doesnt-pay-lead-corprespons08-cx_dv_1016vogel.html [Accessed: 15 Feb 2014]. • Waldman, D., Kenett, R. S. and Zilberg, T. 2010. Corporate Social Responsibility: What it really is, Why it’s so important, and How it should be managed. School of Global Management and Leadership, Arizona State University.
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