CSR Will Be a Game Changer In Future Business

In other words, CSR is like a potential rule or standard, companies try to follow it and may feel anxious about violating CSR. Thus, these individual firms may operate in a similar way inevitably, and fewer innovations are added to their businesses which results in fewer competitive advantages. However, some arguments may present that CSR itself could be the competitive advantage of corporations, but reflect on Hawthorne (2013), 40.6% of customers would not pay extra money for products or services, which comes to a pretty high “unwilling fraction”. This might prove that customers would not buy anything primarily depends on the ethical or environmental issues. Thus, CSR would not be a major competitive advantage of corporations. In addition, Godelnik (2011) claims that CSR might compel companies to delay or pre-empt some effective measures, such as regulations, when addresses social problems. This will also limit the performance of firms, because some methods may be more profitable than others, but less beneficial to society. In order to adopt CSR, corporations may need to choose the less profitable one, so their performance would be limited. Therefore, CSR may restrict corporations’ performances through two ways.

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

The article “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility” by Michael E. Porter and Mark E. Kramer advocates that there is a link between corporate social responsibility (CSR) and competitive advantage, and there is an opportunity for innovation that benefits both the company and society that can result in a win-win positive sum game. Ultimately if your firm does not integrate a CSR program into your business core your competitors will.

CSR is everyone’s business. Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefit society, Liz Maw, CEO of nonprofit organization Net Impact, noted that CSR is becoming more mainstream as forward-thinking companies embed sustainability into the core of their business operations to create shared value for business and society (Fallon).

“Economic, social, ethical and environmental responsibilities, some of which require compliance with the law others requiring discretionary action to ensure that the company does not knowingly operate to the detriment of society” – McIntosh et al, 1998, Pg. 284

Microsoft, Walt Disney, Google, BMW, Daimler, Sony, Intel, Volkswagen, Apple and Nestle are probably big company names that many have heard of. They are without doubt the sole powerhouses of their individual markets holding a big market share for themselves. But, despite the fact that they have that common factor, another thing that they have in common is that these 10 companies are the top ten companies with the highest CSR reputation in the world (SOURCE). CSR the acronym for Corporate Social Responsibility is currently a new business model that many businesses are starting to adapt. Throughout time, things improve and so do peoples expectations; CSR is a new model that incorporates things that people are more concerned with nowadays compared to the past. By requiring companies to spend more of their money on social responsibilities, CSR provides an opportunity for the companies to benefit more than just themselves in many different ways, but the question still lies at the point of to what extent does CSR benefits the companies themselves (SOURCE). There have been a lacking measurement in the actual benefits of CSR and companies are doubting whether or not CSR actually benefits company performance. Despite that though, there must be a reason as to why these powerhouses are incorporating CSR as their main business model and that reason would most definitely be that CSR benefits company performance in so many ways, both externally and internally, that no other business model

Making the most of CSR activities will benefit the companies to enhance the brand image, increase the sales amount and impress their employees. Although there are numerous competitors in the market, a steadfast commitment will lead the company to stand out; thus, over time, the performance will add up to a powerful and winning business.

Both views on Corporate Social Responsibility have become the topic of controversy as CSR is becoming increasingly essential for the society where the business operates. With time the classical theory or the narrow view of CSR is becoming fader and the socio-economic approach is gaining motion. Internationally most businesses are adopting CSR along with their economic interests.

The notion of Corporate Social Responsibility is a phenomenon globally known for many years. In spite of the fact that CSR has been neglected for quite a long time, nowadays several authors deal with this issue, as revealed by the development of theories in recent years concerning the topic. In spite of the fact that there has been a huge growth of literature it is still impossible to simply define CSR. Many definitions trying to capture the concept of CSR exist, but their content varies (Matten & Moon, 2008).

There are numerous factors that are pushing businesses to adopt some sort of CSR model including, but not limited to the shrinking role of government, demands for greater disclosure, increased customer interest, competitive labor markets, and lastly, supplier relations (Corporate Social Responsibility, 2013). Despite the potential costs, frustrations, additional work and preplanning of a business adopting a CSR model, it is not without potential rewards that positively impact the company the environment, and our community. Some ways that an individual business may benefit are through increased workforce diversity, increased customer loyalty, and the ability to attract and retain

In terms of the importance of CSR, it can be broadly divided to three points. Firstly, being socially responsible is a good way for a company to publicise itself. The company which is willing to take CSR must be an honest and reliable company. A good corporate image can help the company not only to win the confidence of existing shareholders, but also to attract potential customers and business partners.

Nowadays, almost every modern company is doing CSR. Why? What are the advantages that these companies actually perceive when

Corporate social responsibility (CSR) is a concept which is also known as corporate citizenship, corporate conscience or in a simple way a responsible business. It is an integrated concept of self-regulatory business model for any organisation. Corporate Social Responsibility has been in practice for more than fifty years now, which has been adopted not only by domestic companies but also by transnational company with voluntary CSR initiatives (Chernev and Blair, 2015). It includes Corporate Social Responsibility for code of conduct, organisational health and environment, companies reporting on social, financial and environmental aspects, partnership with agencies, NGO’s and UN

CSR is majorly working in a sustainable proximity of optimal utilization of resources furthermore progressing towards societal development and the protection of environment. CSR has become an indispensable part of growth for companies all over the world. It aims to incorporate a self-regulatory mechanism wherein a business monitors and ensures its assent with the spirit of law, ethics and international norms. However for many organizations today corporate social responsibility is much more than just following the above mentioned practices, they believe in growing with the people and have set standards and goals in order to realise their notions of societal development. CSR helps an organization in many ways by building good reputation in the market; encourage a positive impact on the stakeholders both internal and external and also proves to be an aid to recruitment and retention particularly with such competitive world market.

Firstly, most of the companies giving free education to poor people, giving free medical check-up and donating money to charities. 5 decades ago, 500 companies were issued corporate responsibility report. But now more than 8000 around the world have signed in UN global compact pledging to show good global citizenship in the areas of human rights, labor, or standards and environmental protection. CSR has a number of stands like economic, ethical, and social. Many organizations have CSR. There is lot of companies doing a corporate social responsibility just like Pepsi, dell, airlines, chocolate companies etc. CSR have top brands. Some of companies doing a charity give a poor people some free brands like Nike brands, shoes, t-shirts etc. Every organization has a stakeholders (shareholders) interest group with direct or indirect stoke on the business. Basic list of stakeholders, investors, employees, customers, suppliers, local people. Corporate social responsibility is not going solve the world problems. That said CSR is a