Corporate Social Responsibility in Business Practices

Question: Discuss about the Corporate Social Responsibility in Business Practices. Answer: Introduction: Corporate social responsibility is becoming one of the standard business practices carried in modern business organization. It builds an overall business reputation that plays an important role in achieving a sustainable growth. CSR strategy is one of the crucial components of a companys competitive strategy which is led by the firm itself. Various policies and procedure are used to integrate social, environmental and ethical and human rights which form the core strategy of any business organization (Navi, 2012). The overall aim of a company is to achieve a positive impact on the society while maximizing the value for the owners. It is defined by the European Commission as the responsibility of an organization for its impact on the society. Corporate social responsibility is not defined by the money spend on the charity by the organization but the overall involvement of the organization in improving the quality of life. Corporate responsibility has developed significantly in the inte rnational business organization (Cadbury, 2006). Research has shown that CSR has become a mainstream activity in most of the organizations. The private organization has a mounting impact over the workforce, clientele, society, stakeholders and the environment. It has become evident that the organizations have to make certain amount of contribution towards the society. This will not only help in developing a positive image of the company but has a long term effect on the future revenue generation (VASAN, 2005). The organizations can make contribution towards their wealth and towards the overall wealth of the community through CSR activities. Ethics of multi-national companies involve moral values. Some of the activities carried out by the organizations are not ethically strong. Most of the organizations focus on making profit. Business ethics is a bigger issue due to involvement of large number of people (Luo and Bhattacharya, 2006). Ethics at workplace has become one of the important concepts in an organization to increase the overall productivity. Unethical actions done by the employees are harmful for the growth of the organization (McWilliams, Siegel and Wright, 2006). Modern organizations are becoming more aware about the social responsibility and ethics at workplace. Business forms an essential part of the society within which they are operating. Mangers are aware that long term prosperity depends upon the sustained relationship with the broad range of people. Intelligent organization understands that an organization cannot perform well if it does not work under the cooperation with the society. Majority of organizations has imbibed a structured corporate governance system to monitor the organization. Consumers have multiple expectations from the organization which is creating responsibility in order to create accountable business conduct (Kotler and Lee, 2008). The organization has a responsibility towards the shareholders. They are answerable to the shareholders for past actions. Corporate responsibility has attained a great place in the mission of the company. Shareholder expects an improved performance for which CSR practices are given special preference. Corporate social responsibility has enhanced the vision of the organization in terms of attainment of goals. The complex goals can easily be attained if company adheres to the governance structure. It is essential to take into record the social responsibility into the daily course while carrying out routine activities. Proponents stated that long term profits increase considerably if a company follows CSR functions whereas critics argue that CSR activities causes unnecessary burden on the organization (Becker-Olsen, Cudmore and Hill, 2006). Critics questioned the lofty expenditure made in the name of the company is sometimes used in a wrongful manner to meet the heavy unrealistic goals. It is used by the organization these days to cover up the expenditure. Sociologist finds CSR as a form of capitalist legitimacy and points out that it is a form of social movement followed by the organization to transform the corporate powers into a business model. It is seen as a risk management device by the researchers which is been used to cover up the flaws (Carroll and Shabana, 2010). Innovation is a huge benefit for the organization in terms of corporate social responsibility. Marketing sustainability has become a strategy to imply in general course of action. Sustainability is one of the important parts which add value to organization in achieving a consistent growth. Organizations are switching on utilizing innovative model of work that will help in attainment of goals and objectives (Vogel, 2007). The organizations have started imbibing innovating culture into their routine functions. It has helped them to attain long term objectives. Majority of organizations are using eco friendly product instead of harmful chemicals. This has helped building strong reputation. Organization like Unilever has recently launched a hair conditioner using less of water. Innovation s is important for an organization to achieve goals through sustainable development (Sen, Bhattacharya and Korschun, 2006). This not only provide with an opportunity to improve public image but to creat e awareness among public. Companies are becoming consumer centric and seeking for opportunities that are in their favor. It is been seen that consumers are becoming more aware about the product ingredients and invest on those products that are following sustainable model. This provides an opportunity to the research and development department to develop ways to set an example before public (Mohr and Webb, 2005). Companies are looking for ways to reduce the cost in order to spend on the other activities. Cost saving is necessary for an organization to develop a sustainable environment. Investment in cist saving program is important in a way to promote motive of CSR practices. Incorporating cost saving model has helped in establishing an evident example before public. Monitoring cost saving techniques will help in accomplishing the desired goals (Blowfield, 2005). This has helped in exhibiting a positive image in front of public. A company which is exhibiting a cost saving plan in their activities has helped in managing the long term goals whereas CSR practice is not only applicable for the limited time period. Cost saving helps the organization to put forward an example for the society. The primary focus of CSR activities is to set an example in front of the society. Major companies across the globe are focusing on reducing the cost in order to create awareness in the eyes of people. CSR prac tice has become one of the important parameter to add value to the organization (Carroll, 2015). CSR practices helps in creating Brand differentiation. People are following those companies who have imbibed CSR in their routine. It is necessary to create a product differentiation in order to attain distinguished targets. It is seen that those companies which are following CSR model are distinguished from the other companies. On a long run it has become important for every multinational organization to create a distinguished model. Starbucks has created an exemplary model of corporate governance through its CSR model (Habisch, Jonker, Wegner and Schmidpeter, 2005). This has not only created brand awareness among customers but this also helps in attainment of desired goals on a long run. This not only include taking into account of environment friendly activities but also includes various social activities. Globalization has led to integration of worlds economy. Every organization is looking forward to compete against each other. Corporate responsibility is gaining importance in to days global business scenario. Foreign brands are setting differential goal through their corporate governance model. Brands are investing on improving their public image through incorporating the CSR model mentioned in their mission. This has become relevant in recent years where large companies have allocated a seriate budget to pursue CSR activities (Werther and Chandler, 2010). Timely review Of CSR model is conducted by the companies in order to create a dignified image. Multinational companies are consistently focusing on implementing the plan into their functions which has helped the companies to achieve long term targets. CSR activities are based on the Long-term thinking and create awareness among stakeholders. This has helped the company to achieve a sustainable growth for a longer time period. CSR has helped the organization to overcome the difficult situation to establish a brand name. Long term focus on the CSR functions is necessary to establish a trust with the customers. An organization can only survive if they have a better CSR culture in their value. Setting of long term goals is necessary for the company in achieving desired goals. Business ethics and values have become important to work in an efficient manner. This will enhance the overall productivity of the organization. Excessive utilization of resources has created a burden on the environment, in order to manage the damages it has become evident to implant CSR activities. This has a long term impact on the image of the brand. Certain companies are using CSR as a tool to improve their image in the eyes of society. People are becoming more aware about the companys strategies and buying products of that company which are following an efficient CSR plan. Customer engagement is necessary for achieving desired results. Engaging customers will enhance the overall opportunities for the organization. Even customers want to participate in the organizations who are constantly working for the society. Different companies are engaging customers in the activities by carrying out different functions for the benefit of the organization and the society. Employee engagement is necessary for attaining long term growth. Sustainable results can only be achieved if the employees of the organization are happy. Employees are the asset of the organization and it is essential to involve them in decision making process. It has become necessary to involve every individual employee by considering efforts which are essential to achieve a desired growth. Employees satisfaction should be considered well before making policies. This is necessary for a business organization to consider the efforts of every individual before framing the policies... this is necessary for the long term survival of the company in order to manage the activities in a systematic manner. Corporate responsibility is necessary to be taken care in order to manage various activities that affect a consistent growth. Beyond CSR if a company invests in building their reputation it will benefit them for a longer time period. It is evident that those companies which are making consi stent investment in the CSR. This will help in attaining better performance than the overall market. Effective planning of CSR will help in better recovery of stock price. This will help in achieving revenues for achieving success on long run. CSR helps in attaining differential goals which will cause success in acquiring desired growth. It is observed that involving employees in the Social responsibility function has helped in attainment of sustainable growth. The above mentioned companies are declared as The Top 10 brands in the 2016 Global Retrace 100 report. It is evident that the success of these eminent organizations is cased due to their contribution towards the society. Understanding the basic needs of the society will help the organization to attain desired goals. Most of the companies have incorporated the model in order to achieve a sustainable growth (Zerk, 2006). Corporate social responsibility has a long way to go create a positive word of mouth for the organization in whole. It is a proven fact that doing something for the society will help in achieving desired growth and will ensure long term growth. It plays a crucial role in making the image of the brand popular not only in front of competitors but also in media. Moreover CSR creates a positive image among the customers which serve the long term motive of the organization. People develop a positive feeling for the brand which takes social responsibility through investing on charity programmes. CSR activities dont require much investment but helps in gaining publicity. Majority of organizations are investing for the cause that requires special global attention in order to grab support from people. CSR will help in gaining brand recognition and it will help in creating brand recognition. People will trust the brand and soon it will help in creating a positive brand image. 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