Corporate Social Responsibility (CSR) and its importance
Corporate Social Responsibility can be define as the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and reviewing them as opportunities to build profits and help the world at the same time. In other sentence CSR is about how companies manage the business processes to produce an overall positive impact on society. It means company need to answer to two aspects of their operations, first, about the quality of their management both in terms of people and processes and the second one is about the nature and quantity of their impact on society in the various areas.
According to The world Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
In the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profit, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.
On the other hand, the European Commission hedges its bets with two definitions wrapped into one, which is, CSR is a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. Why is CSR so important? Most importantly, findings from scientific research are becoming increasingly clear with regard to how CSR is essential for the long-term sustainability of a firm. Firms that blindly and narrowly pursue the profit motive, without concern for the broad spectrum of Stakeholders that are relevant to the long run, are increasingly shown to lack sustainability. But it’s not only important to realize the importance of these groups. Firms must also be able to “connect the dots” and understand how various Stakeholders, and the satisfaction of their needs, represent interrelated challenges. For example, the strategic management of human resources is related to customer satisfaction, and it is essential for firms to attempt to understand and deal with this connection. CSR also important in terms of; Social Media Visibility
One of the reasons that corporations should have CSR is due to importance and prevalence of social media. Corporations that want to protect their brand know that social media is a medium of community perception. When a corporation implements social responsibility in the form of fundraising or programs, social media helps to promote these steps and create a positive perceptions of your brand and it is a great way to deal with your consumers that goes beyond your products.
Public Relations Benefits
Public relation is important tool for shaping consumer perception and building a company’s image. Corporations that actively promote their social responsibility activities often take steps to make them widely known through media. For example, corporate donations, employee volunteer programs are a powerful tool that can build publicity.
Corporations that take place on social responsibility typically have an easier when dealing with the politicians and government rules. In contrast, businesses that disregard for social responsibility tend to finding themselves various of inquiries and probes, often brought on at the insistence of public service organizations. The more corporation takes social responsibility seriously, the more positive the public...
Please join StudyMode to read the full document