Why is Corporate Social Responsibility (CSR) gathering attention in the business world?
(Source : Interregeurope, 2021)
Introduction
People and companies who behave ethically and
with sensitivity for social, cultural, economic, and environmental issues are
referred to as social responsibility in business, also known as corporate
social responsibility (CSR). Individuals, businesses, and governments can have
a positive impact on development of their businesses, and society by pursuing social
responsibility.
It's not only about counting short-term costs
and benefits when it comes to making smart business decisions. Wise decision-makers think about how today's decisions will affect people, and the community, and
customers' opinions in the future.
Companies that subscribe to CSR integrate
social and environmental concerns into their business operations and engage
with their stakeholders on a voluntary basis, according to the report. From
this perspective, being socially responsible means that an organization not
only complies with legal requirements but also goes above and beyond,
investing more in human resources.
What is the importance of Corporate Social
Responsibility (CSR) for a company?
According to current conditions,
organizations must focus on this topic in order to keep up with market trends
not only for short-term survival but also for long-term survival. To compete
and demonstrate the company's strength on a global scale, some companies engage in
both local and international CSR operations. CSR projects are undertaken by
organizations in order to improve the lives of society in some way.
This can be accomplished by donating
essential necessities to low-income families' homes, educational facilities
with equipment, children's homes, rural area school pupils, and the COVID 19 the pandemic situation has also resulted in the formation of groups to assist
society on a broad scale.
Benefits of Corporate Social Responsibility
Improved Public Awareness - People nowadays are more interested in consumables and more sensitive to publicity. They do not want to make a purchase
based on a lack of knowledge. Before buying, do some research or you'll be
influenced by others. As evidenced herein, CSR will raise publicity in order to
establish a positive image.
Brand Awareness and Recognition - Another critical concern for consumers are the brand selection. If your business is well-known, and you have exciting news
about social involvements, if you are driven to a positive behavior, this type of
information will spread. As a result, more individuals will become aware of
your company, resulting in increased brand recognition.
Cost Saving - Even if there is a lower cost involved in packaging and
branding, people will still exhibit interest in the brand if it is well-known.
A boost over the Competition - You will differentiate out from your
industry's competitors if you adopt CSR. You position yourself as a company
that is committed to going above and beyond by taking social and environmental
considerations into account.
Increased Customer Engagement- If you're using sustainable systems,
such as social media channels, you'll be able to make more connections with
greater visibility. You should also demonstrate your efforts to other
platforms, such as radio stations, television stations, newspapers, and so on,
in the hopes that they will cover it. Customers will engage with your brand and
business if they follow these paths.
Greater Employee Engagement - You must ensure that your staff are aware
of your CSR efforts, just as you must ensure that they are aware of your
customer engagement methods. Employees prefer working for a company that has a
positive public image more than one that does not. Furthermore, by showing your
commitment to issues such as human rights, you will be much more likely to
attract and keep excellent talent.
(Source: Digital Stategy, 2019)
Johnson & Johnson CSR
Johnson & Johnson, a multinational
corporation, is a great example of corporate social responsibility (CSR). For
the past three decades, they have worked on lowering their environmental
impact. Their projects range from harvesting the wind's energy to delivering
clean water to people all around the world. Its purchase of a privately held energy
company in the Texas Panhandle allowed it to minimize emissions while also
providing a sustainable and cost-effective alternative to electricity. The
corporation is still looking for renewable energy sources, with the goal of
getting 35 % of its energy from them by 2025.
Conclusion
As CSR, organizations are a part of society. The result is greater demand from employees, customers, and the government
entities for businesses to be more transparent about their operations and to
achieve and maintain acceptable business standards. Moreover, CSR is currently
viewed as a critical tool for businesses to gain a competitive advantage,
secure and develop brand awareness, and establish trust with customers and
employees.
References
Collier , E. (2018, 01 26). Benefits of Corporate
Social Responsibility. The Importance of Corporate Social Responsibility
for Your Business. Retrieved from
https://www.highspeedtraining.co.uk/hub/importance-of-corporate-social-responsibility/
Digital Stategy. (2019, 02 25). Brands Doing it
Right. 16 Brands Doing Corporate Social Responsibility Successfully.
Retrieved from
https://digitalmarketinginstitute.com/blog/corporate-16-brands-doing-corporate-social-responsibility-successfully
Interreurop. (n.d.). interregeurop. Retrieved
08 21, 2021, from Road CSR: https://www.interregeurope.eu/road-csr/
Walton, C. C. (1967). Corporate social
responsibilities. Belmont, CA, Wadsworth.
Corporate social responsibility (CSR) is a broad term used to describe a company’s efforts to improve society in some way. As important as CSR is for the community, it is equally valuable for a company. Through CSR programs, businesses can benefit society while boosting their brands. CSR activities can help make a stronger bond between employees and corporations, boost morale and help both employees and employers feel more connected with the world around them. As you mentioned Praveen, multinational companies like Jhonson & Jhonson using CSR as a tool to maintain business standards, gain a competitive advantage and to develop brand awareness.
ReplyDeleteHi, Sunith, thank you for taking the time to provide me your valuable feedback and concerns about my article.
DeleteWhen HR is driving CSR within organization, every employee will take it upon themselves to uphold company values on a daily basis. This creates a self-regulating environment that stays true to company vision. Thanks for Sharing.
ReplyDeleteHi Harsha, thank you so much for your valuable feedback and concerns about my article.
DeleteCSR is a broad area of strategy used by most of the companies in and around the world. When a company replicates its interest on Social Responsibility, it adds a greater value to its brand. In Srilanka, we have a awarding system for companies that excel in CSR projects which is beneficial to the society and the company image or brand in return. I believe it is a triggering aspect to attract customers towards the company which handles CSR. Overall, it is a pivotal strategy and companies need to implement it in a viable manner.
ReplyDeleteArun, greatly explained, thank you so much for your value addition to my article.
DeleteAs a part of the CSR strategy companies contribute for the social development. Every company should not be expected to be involved in CSR in the same manner. But companies participate in CSR will make its products and services more attractive to consumers as a whole and making more profit exceeding the cost of implementing the CSR strategy.
ReplyDeleteTrue, every company should not be expected to be involved in CSR in the same manner. Certain companies try new approaches with brilliant methods by covering their products and services; the results will be spectacular and they will achieve remarkable success in society.
DeleteThank you Rukmali.
Important topic Praveen. Good effort!!
ReplyDeleteThe business environment has changed dramatically in recent years. In order to survive in this dynamic business environment, businesses are forced to adapt a variety of strategies, among which include the integration of social responsibility (CSR) into their business models (Douglas and Emily, 2011).
I have created a blog regarding this topic as well, invited you to visit https://bocumesh.blogspot.com/2021/08/the-ethical-context-of-hrm-why.html and gain more knowledge
Hi Umesh, great definition by Douglas and Emily. thank you for sharing your blog link to gain exta knowladge about the particular subject.
DeleteCorporate social responsibility, alludes to the conviction that organizations have a commitment to society past their responsibilities to their investors. As well as producing benefits, organizations are relied upon to have some liability to partners like workers, clients, networks, and the climate.
ReplyDeleteSome companies provides information on certifications from organizations and government bodies for meeting CSR standards including employee satisfaction, accessibility, environmental matters, and social issues.
Thank you Gangani, for your valuable feedbck on my article.
DeleteIn general, CSR is understood as the way in which firms integrate social, environmental and economic concerns into their values, cultures, decision-making, strategies and operations in a transparent and responsive manner and thus establish better practices within the company, build wealth and develop society. This is also a management concept where companies incorporate social and environmental concerns into their business operations and interactions with their stakeholders.
ReplyDeleteBeing a social company can strengthen the company's image and build its brand. Social responsibility empowers employees to use the resources they have to do good. Systematic social responsibility programs can increase work ethic and lead to greater productivity for employees.
Absolutley, there are situations, some corporations produce big profits in a legitimate way, but others make money through black market activities in order to hide, and they try to prove it by social initiatives such as CSR.
Deletethank you Oshadha.
Businesses can no longer function only for profit at the expense of the economy, customers, and employees. Companies must examine how they might contribute back to society and the environment. Companies that are socially responsible generate good brand awareness, improves customer loyalty, and recruit top-tier workers. These factors are among the keys to generating greater profitability and long-term financial success.
ReplyDeleteHi Nadeeshan, greatly explained, thank you so much for your value addition to my article.
DeleteCorporate Social Responsibility are important to organization. Having a proper CSR mechanism is beneficial for both society as well as to organization. In global context we can we great CSR initiative. Further this will build a reputation in the market . Also the reputation build through CSR will help to increase the market share as well as to recruit best people to the organization. Because everybody is willing to deal with reputed companies.
ReplyDeleteHi Tharindu, thank you very much for your valuable feedback.
ReplyDeleteHi Praveen,The Importance of Collective Commitment (CSR) at the moment. CSR policies attract customers, motivate employees and keep them both in the long-term growth and success of the company. CSR is an innovative factor of business or we may call it the spark of the business that revolves around aggressive concepts
ReplyDeleteThank you Bashitha, for your valuable feedback.
DeleteBusinesses that are committed to CSR understand that it results in an improved reputation and brand value. It is critical to develop a clear CSR strategy in order to ensure the organization's competitiveness in the industry in which it operates. This typically entails policies that incorporate numerous aspects of daily business operations and the company's core strategy, such as social, ethical, environmental, human rights, and consumer concerns.
ReplyDeleteThank you for your valuable feedback Kanchana.
Deletethank you for sharing all this wonderful info! Being a socially responsible company can bolster a company's image and build its brand. Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. Formal corporate social responsibility programs can boost employee morale and lead to greater productivity in the workforce.
ReplyDeleteThank you Jenarthn for your kind attention.
DeleteThe organizations are operating in the society and it is their responsibility is to take care of them. It also helps the organization to get a good reputation and even good business as the end of the day the income generates from the community that they goin to invest.
ReplyDeleteCorporate Social Responsibility is important for business. Being a socially responsible company can bolster an organization's image and build its brand. Social responsibility empowers employees to leverage the corporate resources at their disposal to do good. Formal corporate social responsibility programs can boost employee morale and lead to greater productivity in the workforce.
ReplyDeleteCSR activity in an organization demonstrates their values and brand and engage their employees and communicate with the public about how they operate and their contribution towards corporate social responsibilities for a sustainable future. A very important practice to be implemented by organizations in order to support and contribute and to take care the social responsibilities. Worth to read.
ReplyDeleteGreat Article Praveen! CSR activities are a very important part of any organization as it helps the to project an overall better brand image & lend a helping hand to wards a sustainable future. Not only will these activities help enhance the brand image it will also help to develop the local communities.
ReplyDelete