Corporate Social Responsibilty

Question: Discuss about theCorporate Social Responsibilty. Answer: Introduction Corporate Social Responsibility is not a new concept it is a very old concept as the trade and the business itself. There are different grounds created by different organizations for defining corporate social responsibility.(Hopkins 2012) But there is one ground on which the corporate social responsibility can be defined as an activity undertaken by a corporation for the welfare of its employees and the society as a whole along with the environment in which the corporation operates. Corporate social responsibility is something that an organization gives back to the society after using the resources of the society for making its profits. Corporate social responsibility is an obligation that a business has towards its customers, society and the environment in which it is operating. (Greunewalder 2008) Importance of Corporate Social Responsibility Though the nature of CSR is controversial it has become one of the most intense concerns for the various businesses. Businesses are expected to create returns for their shareholders by the adaptation of the socially responsible character towards the society. CSR is considered to be a very important concept for the various organizations.(Schwatrtz 2011)CSR is a corporate strategy that benefits not only the society but to the business as well. The importance of the CSR is as follows: CSR helps in building the brands for the corporations and boosting the reputations of them so that they can enjoy a favorable public image. By adopting the CSR in their day to day activities the corporations can increase there valuable assets that includes trust, goodwill and good reputation. If a company has a socially responsible profile then automatically company is in a position of enhancing its competitiveness and it can obtain a significant position in the customers mind. CSR creates economic benefits to the company through the cost reduction and increase in the revenues. If the companies invest socially then they receive benefits by outweighing the costs. This further helps in the development of the various innovative products and services. This can also help the companies in boosting their profits and reducing the costs. Advantages of Corporate Social Responsibility Improvement in the Image of the Corporation The CSR helps in the improvement of the goodwill value of the corporations. Through this dual purpose is served to the corporations, the first one is the consumers will buy products of that company and secondly other companies will be attracted to do the business with the company. Increased Attention and Retention of Employees The companies whose CSR is strong for them hiring and retaining the employees is very easy. People get automatically attracted towards such organization and are willing to work with them. Attracts Capital Inflow from Different Sources The CSR Company has an advantage of attracting huge investors. The company that is engaged in the programs of the CSR has a great image. The capital from the investors abroad is also attracted to such corporations.(Paetzold 2010) Positive Publicity It helps in the publicity of the corporation though it is considered in every business that any publicity is a good publicity. The CSR will act as an advertisement for the company. No hostile nature of the regulatory authorities(Crother Aras 2012) The regulatory authorities will not scrutinize the work of the corporations that have strong CSR. The regulations of the authorities would be lenient for such corporations because the authorities might feel that the companies comply with all the set regulations.(Hederson Florence 2009) Customer Relations The company with a strong CSR will have good and healthy relations with the customers and the customers of such corporations will enjoy working with them. Disadvantages of Corporate Social Responsibility Company reputation becomes a hit The customers loose trust in the companies if a reputed companys product is not up to the mark. The CSR guidelines help to build up the reputation of the company that can prove out to be disadvantageous for the company itself.(A.r 2008) Shareholders Interest For bringing in CSR procedures that are lots of changes that are required to be bought in to the organization for this experienced personnel is required to be hired and it is thought by the shareholders that those costs are covered by the company from the pockets of the shareholders, hence the shareholders loose interest in the company.(Evans 2013) Negative Effect on the Reputation of the Companies The policies of the CSR require that the companies shall release all the important information about the products of the company which might have negative effect on the company. A very good example of this can be known from the fact that coca cola in its 2013 report said that there are some dangerous chemicals in its products due to which the revenues of the company declined. By many people it has been believed that the CSR is a window dressing as many organizations use the support of the CSR to hide their unethical conducts which is not correct thing.(Keilamas 2014) Increase in the Cost of Production The expenditure of the company often increases due to the activities of the CSR programs. Due to this increased expenditure the prices of the products of the company increases simultaneously that are ultimately paid by the customers.(Gaur 2011) Conclusion It is considered that the Corporate Social Responsibility is a vital element for any business. There are various areas that can be chosen by the company to practice the corporate social responsibility. The Corporate social responsibility is considered as an idealistic idea though there are various abusive powers against this concept but still the concept of corporate social responsibility has gained a lot of popularity and organizations prefer to be socially responsible as it helps in boosting their profits by increasing their revenues and decreasing there costs. The companies shall follow the concept of social responsibility as they operate in an environment which offers that various variety of resources due to which they are able to earn lots of profits and they have a responsibility towards the welfare of the society also. So, at last it can be concluded that the corporate social Responsibility is a must for every organization. Bibliography A.r, B 2008, CSR in Private Enterprises in Developing Countries: Evidences from the Ready, Hampshire, London. Crother, D Aras, G 2012, Global Perspectives on Corporate Governance and CSR - Page 26, British Library Catlouging, UK. Evans, K 2013, eHow, viewed 12 August 2016, https://www.ehow.com/info_8031857_disadvantages-corporate-social-responsibility.html. Gaur, S 2011, preservearticles, viewed 13 August 2016, https://www.preservearticles.com/201108019686/759-words-essay-on-corporate-social-responsibility.html. Greunewalder, A 2008, Corporate Social Responsibility. Hederson, S Florence, S 2009, Corporate Social Responsibility and Sustainable Business: A Guide to Their Leadership Tasks and Functions, Center for Creative Leadership, 2009, London. Hopkins, M 2012, Corporate Social Responsibility and International Development, Eathscan, London. Keilamas, M 2014, chron.com, viewed 12 August 2016, https://smallbusiness.chron.com/pros-cons-corporate-social-responsibility-56247.html. Paetzold, K 2010, Corporate Social Responsibility: An International Marketing Approach. Schwatrtz, M 2011, Corporate Social Responsibility: An Ethical Approach, 3rd edn, BroadView Press, UK.