Yes, I think it is a good idea for companies to use CSI to promote their corporate image. The reason being is that companies, especially big companies spend huge amounts of money on CSI programmes to help uplift and improve the way of life of people in the community. So at the same time while doing this, they can benefit as well by improving the way people view the company. Companies should also invite other businesses to help and support their CSI program, through newspaper articles or through the radio. When people hear or see these advertisements, they will not only become aware of the company’s CSI program but also see them being proactive by taking a step further by inviting other businesses to contribute to bettering the community. Therefor not only does the company’s image benefit from CSI but also the company’s benefits from improved community relationship , improved employee loyalty and involvement, government recognition as well as increases customer goodwill and loyalty. With the image of the business being good and their CSI program being a continuous, sustaining one, this will give the company a long lasting competitive advantage over rival companies.
What is meant by corporate citizenship are companies doing good deeds for society. That is why corporate citizenship is a term used to describe a business role in society or their responsibilities towards society. This term may regard the company itself as a person, that is why this term is also related to CSI as a company just like a person will give something back to its community as it is grateful for all the support the community has given the company.
This means that medium-sized companies only do what is required, and no more – the bare minimum. Therefore, these companies just do a small CSI to get recognition from the public to boost their corporate image, instead of investing in a good CSI program that is sustainable and will benefit the community in the long term.
“They are a crucial extension of how a company interacts with the communities in which it does business.” This imposes a challenge on the business as they have to be careful on how they interact and work with the community when going about their CSI program. If the business does not interact with the people well, they might find that the community may not support them and will not buy their products and or services. “The activity must have an upliftment dimension and be sustainable.” In order for a CSI program to be sustainable, community members must work with the business in order for it to be a success and be sustained and continued by the community itself. However if the community does not participate, a sustainable CSI program is doomed to fail which means the business suffers a loss of funds and resources. This becomes a big problem to businesses who do sustainable CSI programs. Also, usually, company’s employees takes part in the company’s CSI projects and if the project fails all the hours spent on the program is wasted which means it could have been used in the business production. Therefor since man hours are lost the business loses profits.
“Rocky has found the medium-sized companies are compliance focussed, which means , they only do what is required and no more.” Small and medium enterprises find it difficult to implement CSI programmes and when they do try are often criticised as they do not meet the requirements of what is needed in the community or it does with other CSI programs that big business implements. Hence the community does not support the business as they feel that they are being greedy and not doing enough. This is one of the biggest problems and challenges small and medium businesses face when implementing a CSI program.
“There are companies that have internal Aids programme, but when they extend it to the community, there is no communication between the departments.” When a business wants...
Please join StudyMode to read the full document