Illustrate the benefits of Corporate Social Responsibility and the ways to increase Corporate Social Responsibility's effectiveness
Introduction
‘Corporate social responsibility (CSR) is a long-term strategy, uniquely relevant to the twenty-first century, in which responsible social change can become a source of innovation and profits rather than added cost‘ (Vogel, David J, 2005, p.19). ‘Those that don't make that effort won't be a problem because ultimately they won't be around.’ (L. Hunter Lovins, 2006, p.26). Obviously, CSR is no longer a new strategy to companies nowadays.
In terms of definition, Carroll (1991) suggests that CSR has four kinds of responsibilities or dimensions: economic, legal, ethical, and philanthropic whereas Kotler (2001) defines it as doing business in a way that maintains and improves both customers’ and society’s well-being. Actions like cause-related marketing, sponsoring charitable events, offering employee volunteerism programs, having environmental initiatives and demonstrating a commitment to health and safety issues can all be classified as CSR (Maignan and Ralston, 2002). Owing to its benefits, CSR has been embraced by various successful companies: Dell Computer allows customers to buy carbon offsets when they purchase a new computer, Nike plans to be carbon neutral by 2011(Donaldson and Preston, 1995; Griffin and Mahon, 1997). In the following essay, several benefits of CSR and ways to increase CSR’s effectiveness will be illustrated.
External benefits of CSR
Regarding the benefits of CSR, they can be categorized as external benefits and internal benefits. Generating a positive corporate image and brand perception which is crucial to succeed is one of the external benefits of implementing CSR programs (Smith and Stodghill, 1994).
The above figure is extracted from an academic journal called ‘Reputation and Corporate Responsibility’ which is written by Stewart Lewis. The figure shows that other than the traditionally despised politicians and journalists, business leaders are the professional group least trusted to tell the truth. Stewart (2003)
‘Corporate social responsibility (CSR) is a long-term strategy, uniquely relevant to the twenty-first century, in which responsible social change can become a source of innovation and profits rather than added cost‘ (Vogel, David J, 2005, p.19). ‘Those that don't make that effort won't be a problem because ultimately they won't be around.’ (L. Hunter Lovins, 2006, p.26). Obviously, CSR is no longer a new strategy to companies nowadays.
In terms of definition, Carroll (1991) suggests that CSR has four kinds of responsibilities or dimensions: economic, legal, ethical, and philanthropic whereas Kotler (2001) defines it as doing business in a way that maintains and improves both customers’ and society’s well-being. Actions like cause-related marketing, sponsoring charitable events, offering employee volunteerism programs, having environmental initiatives and demonstrating a commitment to health and safety issues can all be classified as CSR (Maignan and Ralston, 2002). Owing to its benefits, CSR has been embraced by various successful companies: Dell Computer allows customers to buy carbon offsets when they purchase a new computer, Nike plans to be carbon neutral by 2011(Donaldson and Preston, 1995; Griffin and Mahon, 1997). In the following essay, several benefits of CSR and ways to increase CSR’s effectiveness will be illustrated.
External benefits of CSR
Regarding the benefits of CSR, they can be categorized as external benefits and internal benefits. Generating a positive corporate image and brand perception which is crucial to succeed is one of the external benefits of implementing CSR programs (Smith and Stodghill, 1994).
The above figure is extracted from an academic journal called ‘Reputation and Corporate Responsibility’ which is written by Stewart Lewis. The figure shows that other than the traditionally despised politicians and journalists, business leaders are the professional group least trusted to tell the truth. Stewart (2003)