Essay Corporate Social Responsibility

Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.

Corporate Social Responsibility (CSR) is a very controversial topic. A question that has been debated for the past few decades is; is it corporately viable to introduce social responsibility as a proposed addition to the work ethic of business organisations. As well as, if adopting the framework of corporate social responsibility would yield positive improvements for those organisations.

Over their years of operation, Chick-fil-A has made contributions of over $68 million to local charities and educational institutions, as well as millions of dollars’ worth of food donations throughout the communities in which they serve (Giving Back, 2016). In addition, Chick-fil-A has made a priority of sustainability through forest conservation and making employee care a priority (Sustainability, 2016). According to a study of CSR’s role in driving customer relationships, Krist Swimberghe and Barbara Ross Wooldridge (2014) found that these CSR initiatives have benefited Chick-fil-A, as customer loyalty is high for this company; and based on their research, Swimberghe and Wooldridge assert that “purely altrustistic” (p. 362) motives must be in place for a long-term CSR strategy to work. In expressing Chick-fil-A’s guiding principles, S. Truett Cathy explained, “I have always found more joy in giving when I did not expet anything in return” (Sustainability, 2016). These words reflect the greater drive of an organizational viewpoint on CSR, as a biblical motive of helping others should not be based purely on self-interest. While receiving a tax break or gaining higher customer recognitions can be a byproduct of CSR, the motivation for the believer must be

Ben Cohen,one of the builders of Ben & Jerry’s , proposes that it is unsubstantial for Ben & Jerry’s to merely do a business just like other companies, and it should make philanthropic contribution to society as well. This mind comes to be practical and when it comes to Corporate Social Responsibility (CSR), Ben & Jerry’s become prominent example (Dennis et al, 1998).

THE CORPORATE SOCIAL RESPONSIBILITY (CSR) MOVEMENT has grown in recent years from a fringe activity by a few earnest companies, like The Body Shop, and Ben & Jerry’s, to a highly visible priority for

Once a brief overview of the CSR discipline as well as its main benefits for consumers and organizations have been stated, it becomes clearer and relevant to state the Aim and main objectives of this academic investigation.

CSR ARE A COMPANY’S FRAMEWORK WITH EXPECTATIONS AND DEMANDS OF STAKEHOLDERS-NOT ONLY CUSTOMERS AND INVESTOR, BUT SUPPLIERS, EMPLOYEES AND SOCIETY ( BEAL, 2013)

Lou and Bhattacharya (2009) maintain that CSR creates a level of ‘Moral Capital’, which then translates into ‘Relational wealth’ with different stakeholders. This is based on brand faith and credibility with costumers, affective commitment among employees and regulators, trust among suppliers and higher attractiveness for investors in general. Consequently it is important for organizations, to understand that CSR initiatives need to be communicated and transmitted to its group of interest. As Blomqvist and Posner (2004 cited in Comfort et al. 2007, pp.584) propose:

The researcher also had discussions with the interviewees regarding the benefits that these CSR activities have brought to the organization. It was established that many organizations have a CSR Policy, which defines areas of concern and initiatives to improve relations with the people and environments affected by business operations (Bell, 2016). The interviewees agreed however that CSR is about more than environmental responsibility or having a recycling policy. Its initiatives take organizations beyond compliance with legislation and leads them to honor ethical values, respect people, communities and the natural environment. But most of all CSR is sustainable - involving activities that their organization can maintain without adversely affecting the business goals. Few benefits mentioned were;

Corporate social responsibility is of high relevance in the food industry, as this sector has strong impact and high dependence on the economy. CSR threats and responsibilities are increasingly shifting from single firm level to the food chains and network. Over the past decade, there has been substantial evolvement in CSR as a response to perceived limitations of governmental regulations such as privatization and globalizations. Another main reason for rising relevance of CSR is shift in values and preferences of more affluent citizens in western society as well as revolution in communication technology. Civil society and media are requesting companies to be more transparent and open with respect to their actions and also

Today many customers will be more loyal to businesses that show CSR. A good business will know this and show CSR in one way or another. This paper will discuss two companies that have

CSR can also be a driver of innovation. Operational changes that come due to CSR can lead to growth opportunities through new product development and cost savings from production efficiencies.

CSR can improve the company’s reputation and branding and this in turn improves the prospects for the company to be more effective to attract new customers and increase market share.

“ What are the main characteristics of CSR strategies and what influence do they have on financial performance?”

Despite being costly to businesses from one end, these businesses understand the risk that lack of CSR can have especially in damaging their reputation. The negative image associated with the company will result in boycotting their products or lack of appeal in them which hurt businesses. In order to effectively manage CSR, businesses have realized that the traditional tools are failing in the delivery of goals and new tools have been devised for the same.