The benefit of CSRCorporate Social Responsibility

Topics: Corporate social responsibility, Social responsibility, Business ethics Pages: 5 (1455 words) Published: December 4, 2014
The benefit of CSR

Corporate Social Responsibility (CSR) has become an attractive issue in recently years, because several companies and people have noticed environmental or ethical problems of surrounding society, such as working places and pollution. Although the first Concept of CSR was proposed from the early 1950 and started being rarely discussed after Industrial Revolution, CSR is now using broadly in full integration with strategic management and corporate governance at 20th century to improve the reputation and profits of companies. This essay will argue that CSR could benefit companies to raise their business reputation, via building brand and products differentiation and strengthening relationship with workers, and enhance the competitive advantage to increase profits, such as complying with a standard legitimacy, even though some people think that the most important task is gaining the maximum profits and concern that CSR could cause a disadvantage because of lack of capacity to handle social activities. The first supporting argument is that CSR help companies establish a well reputation with brand and products differentiation, and it is useful to help increase profits. In fact, reputation could be seen as an impression of a company, and it is a symbol and spirit in comparison with other competitors (Gotsi & Wilson, 2001). Furthermore, Companies with CSR provide the best experience for customers, which could be helpful to build brand differentiation and gain profits. Hernández-Murillo and Martinek (2009) had reported that Companies could acquire additional benefits by enhancing reputation and ability to generate profits with differential products. For example, Ikea, it has been a long time to reduce negative environmental impact of itself and products, and offer differential products with good design and function. In addition, IKEA always try to integrate social and environmental considerations into daily operations to build a unique brand and this brand means an environmentally symbol. (IKEA UK website, 2006). Because of the efforts, Ikea establish a good reputation to surrounding society and build a different brand in this field, moreover, it helps Ikea as a successful international company. As a result, CSR is a way to increase the value of companies and obtain profits. Another argument is that when companies improve CSR could create better reputation and profits by meeting social and environmental expectation of workers in the worldwide, because companies executing CSR would focus on establishing a comfortable work surroundings and devoting their efforts to improve corporate environment (Lyon.T and Maxwell.J, 2008). For instance, Toyota, as a famous multinational company, contributes its resources and technologies to develop sustainable corporate environment, and engage in development of CSR. Moreover, Toyota provides a suitable environment for employees to drive their effort and work together with companies (Toyota website, 2014). Furthermore, companies could acquire benefits from evaluating their reputation and profitability by improving working and corporate environment, which strength a good competitive advantage (Khojastehpour, M. and Johns, R. 2014). Consequently, companies improve CSR, which could improve a long-term relationship with workers and corporate environment, and then, help companies establish well reputation and profits. Thirdly, CSR could help companies gain legitimacy easily, and it is useful to improve reputation and access to market for profits when they sell products. In addition, it has been shown that CSR convey economic and legal commission (Go¨ssling.T, 2011). Therefore, regulators have agreed products made by companies with CSR. Moreover, CSR could help companies guarantee the legitimacy (Zhao.M, 2012), so customers could feel relieved to buy their products. In addition, the social legitimacy might be usable to access to international market and assimilate the expectation...

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