Why Corporate Social Responsibility Is Becoming More Important to the Organization?

Corporate Social Responsibility is Quality goods & services are supplied by the Organization who is expecting profitability. The consumer who always expect to buy quality, branded, & under concessionary prices goods & services. This is a transaction which is happen between company & consumer.

But,CSR projects are not done on profitability by the company. It is a service of the social. So, we can define that Corporate Social Responsibility is the company takes the responsibility to contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

Some businesses have as their main purpose the fulfilment of social or environmental goals, as opposed to a business that tries to achieve its financial goals while minimizing any negative impact on society or the environment. These businesses are called Social Enterprises.

Van Marrewijk, (2003) defined CSR is regarded as the panacea which will solve the global poverty gap, social exclusion and environmental degradation.

Beckman et al, (2009) pointed out that CSR known as the organization’s status and activities with respect to its perceived community responsibility. CSR is developing in the ethics, marketing, and management fields. The ethics consists of three types of issues i.e., macro-, meso- and micro-level based. The macro- and meso- refer to stakeholder engagement and micro- is center of specific such as code of ethics.

Boyd et al, (2007) defined corporate social responsibility as general sense reflects obligations to society and stakeholders within societies impacted by the firm.

Levels of Corporate Social Responsibility

1.    Philanthropic Responsibilities

Philanthropic responsibility is always voluntarily and could be implemented through both devote the employees time and the company’s money for the best of the society and always try to strive for improving the world around them. The societal approach indicates that companies are responsible to the society as a whole, of which they can be seen as an integral part (Carroll, 1991).

2.    Ethical Responsibilities

Refer to Caroll, (1991) ethical responsibilities represent standards, norms and expectations that consumers, employees, shareholders and the community look upon as fair, even though they are not transferable into laws. The ethical responsibility is the voluntarily responsibility by the company to act in a manner that is fair and justice and to avoid or at least minimize the risk that the shareholders of the company is affected in any negative manner. In the latest years the ethical responsibility has created high expectations on corporate managers and social pressure forces the companies to act in a manner that is far beyond their legal responsibilities.

3.    Economic and Legal Responsibilities

Economic responsibilities mean that the core activity of a business is to provide goods and services. The legal responsibilities refer to companies cannot only focus on the profit motive simultaneously they are expected to act in accordance with current laws and regulations transmitted by federal, state and local communities as the ground rules under which business should operate (Carroll, 1991).

Why is Corporate Social Responsibility (CSR) important for the organization?

Companies must pay attention to this trend for below mentioned benefits to get through the involvement of Corporate Social Responsibility. Nowadays lots of organizations are doing CSR projects not only inland wide but also worldwide. Outcomes of CSR projects may not be received in short period in the company.

CSR projects are done by the organization to better the lives of the society in whatever capacity. This can be done through donation of basic needs to Houses for poor families, Educational facilities with equipment, Children’s Homes, schools etc.

Different organizations have different CSR activities based on their mission and vision. CSR provides a way for organizations to benefit themselves while doing the same for the society.

1. Employee engagement

If CSR projects is being done by the company which is once best way of employee engagement to keep a good combination between employee & organization. When implemented like this activities need to support of every employees to success for the company. Then after, corporate social responsibility gives the employees of an organization an opportunity to contribute in giving back to the society, country or environment. Being able to do something that is just not for yourself but helps put a smile on someone else’s face gives us human beings great satisfaction. The organization is involved in a good project for the society, as employees who should involve for the company. Ultimately, the best employee engagement will buildup automatically.

2. Brand building

There is a high competition in the market of every products and it is very difficult to make the brand populations inland wide & worldwide. As a result of keeping good brand populations, can be made best custom base, stakeholders, partners, and also, able to earn highest profitability. Positive word of mouth from those who benefit from your organizations CSR can help grow and make your brand successful. Despite the publicity, corporate social responsibility should not be done to gain publicity but because an organization believes in the cause they undertake. Helping bring positive change to the society will definitely attract the media and give you a cutting edge over your competitors.

3. Good reputation to the organization

Good reputation should be built up among the others competitive organizations and customers, society. Through the CSR projects about the organization’s name is spoken in everywhere. There are loyal customers & employees having the organization who is willing to see further go ahead to organization with shine. They will talk about the company heroics with others. Corporate social responsibility can be one of the ways that helps the organization build further loyal customers and employees. This will in the end help build a positive image for your brand. With loyal clients who are happy about your efforts, you can be sure of increased revenue generation.

4. Societal development

The government has main responsibility to develop the society and also, various companies undertake to do something for the society. Eg:- Building school, building & repair houses for poor families, donation of school items, cloths, foods, water project etc.

As an organization, something can be done for the society which is most valuable thing. We live in a society where organizations are too money driven and year in year out are only focused in increased revenue and market share. The organization also is part of society who should take the time out to do something for the society.

Through CSR projects, self-satisfaction will increase and it will be driven towards of organization’s betterment.

Conclusion

The organization need to approach something to do for the society as CSR. Then automatically, will be increased demands from employees, customers and government bodies for businesses to be more open about their activities and to reach, and maintain, acceptable standards in their business practice.

For employers, CSR is now seen as an important way to increase competitive advantage, protect and raise brand awareness and build trust with customers and employees.

References

Why is Corporate Social Responsibility (CSR) important for the organization? , July 20, 2017

https://www.fuzu.com/blog/why-is-corporate-social-responsibility-csr-important-for-organizations

Opadere.A, Why Corporate Social Responsibility Is Becoming More Important To Organizations

https://channels.theinnovationenterprise.com/articles/why-corporate-social-responsibility-is-becoming-more-important-to-organizations

Sammi Caramela, June 8, 2018, what is Corporate Social Responsibility?

https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html

Essays, UK. (November 2013). Theories of Corporate Social Responsibility Management Essay. Retrieved from https://www.ukessays.com/essays/management/theories-of-corporate-social-responsibility-management-essay.php?vref=1