Corporate Social Responsibility

2176 Words Feb 3rd, 2013 9 Pages
What is CSR? To what extent is there a business case for CSR?
A. What is CSR?
Competition is becoming more and more fierce while the market is becoming globalization. With higher consumer sovereignty, customers are no longer satisfied with qualify products and good services. The society concerned more about the business ethic and environmental issues. Companies are expected to act virtuously nowadays. The ideas of Corporate Social Responsibility and Corporate Citizenship are spreading faster than ever before and become one of the hottest business models in the recent decades.
“Corporate Social Responsibility (CSR)” is defined as “the commitment of business to contribute to sustainable economic development, working with employees, their
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This innovation is also being considered as long-term oriented and sustainable for future development so both the customers and investors are satisfied with it.
The second aspect of corporate social responsibility is the community. Corporations have to be responsibility to the local community as they are the essential for the business success. Social responsible firms should hire local labour force in the work place. Corporations often make donation after huge disasters such as earthquake or hurricane. For example, companies had donated over US$547 millions after the catastrophe of Hurricane Katrina in 2005 (Briggs & Verma, 2006). Although some criticize that the corporations are making disasters into opportunities for public relationship, the donation can certainly help the community to rebuilt their home afterward,
The third aspect of corporate social responsibility is the workplace. Companies are responsible to ensure the safety and ethnic in the workplace. The employees are generating the profit so the companies should be responsible to them by creating harmless and harmony working environment. For example, Nike, and other American and European sports wear production companies, promise to monitor the working conditions in its supplier factories in less developed countries (Vogel, 2005, 1).
Corporations should also be responsible to the market place. Not just manufacturing quality product but also meeting the needs of various customers.
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