The Importance of Corporate Social Responsibility

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

Organization’s commitment to social responsibility takes the form of policies or pronouncements on what the organization intends to do to address its social impact in the community where it operates, which includes its stakeholders, suppliers and the general public. As such, a key requirement in implementing an organization’s commitment to social responsibility is the buy-in from the board and the top executives which make the policies, and the support of the middle-management and employees which will implement the policies. To do this, the board and top executives must understand the firm’s effects as an organization, and everyone else must have a clear grasp of the direction where it is going. Implementation involves the

Nowadays, many international companies take sustainable development seriously. They understand that sustainable development can enhance their quality of life and their reputation in public. Sustainable development is "development that meets the needs of the present without compromising the ability of future generations to meet their own needs." (Brundtland, 1987) Sustainability requires monitoring and managing all the person to ensure that our economy and society can continue to exist without destroying the social and natural environment during development. The sustainability includes three pillars, which are economic, social and environment, forming a triple bottom line. The triple bottom line demands that a company 's responsibility lies

In this era of sustainable development, companies have realized the importance of adopting a corporate social responsibility and contributing their part in the development of environmental sustainability in the community that they are a part of. However, what is interesting to note is that many companies have found the

Corporations’ measured success by financial means only undermines the global impact companies can have on society. With the evolution of business into a global market, society requires corporations to emphasize social welfare beyond simple philanthropic contributions. A new initiative called Corporate Social Responsibility blends philanthropy, social initiatives, corporate responsibility, and corporate policy for the overall benefits to various facets of society, including but not limited to investors, employees, and local communities.

With the recent corporate scandals involving such companies as Enron and Martha Stewart, the concept of corporate social responsibility (CSR) has once again made its way to the forefront of contemporary management ideologies. However, CSR itself is not a new concept. In fact, societies as far back as the Ancient Mesopotamians (circa 1700 BC) incorporated CSR in their businesses. "King Hammurabi introduced a code in which builders, innkeepers or farmers were put to death if their negligence caused the deaths of others, or major inconvenience to local citizens." With each new "Enron" managers of similar corporations are suddenly placed in the spotlight, causing plans to be put into action to create a more socially responsible company.

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

In recent years, Corporate and Social Responsibility has become an ever increasing concern and source of community debate. It is now socially accepted that corporations have some ongoing responsibility, though sometimes ignored, to set a good example, make decisions based on social good and on ensuring positive environmental practices.

There is a change in the expectation of employees, customers and shareholders which makes CSR more favorable in doing business today. It is a more sustainable way of doing business and those organization which are more involved in corporate social responsibility will most likely reap the rewards in the longrun.In today’s fast speed and digital world, each business despite its size need to have CSR program in place. Those without CSR programs must implement it as fast as possible otherwise they will lose valuable stakeholders in the long run.

CORPORATE SOCIAL RESPONSIBILITY By Lori S. Mohr-Corrigan, For The Paper Store - © October 1999 VISIT www.paperwriters.com/aftersale.htm -- for more information on using this paper properly! Because society is fundamentally based upon performance and profit, it is not unusual to find that it is necessary to impart a sense of corporate social responsibility with regard to contemporary commerce. The ethical approaches of purpose, principle and consequence are integral components of business social performance; itemizing these contributions finds one incorporating the interests of ethics and morality within the corporate structure, essential concepts that are often absent from a managerial standpoint. Chapters two and three of Beauchamp and

Some corporations do not have a clear understanding on what the public really wants and what the society expects from a company (Mohr, Webb, & Harris, 2001). Microsoft knew exactly what the society wants to see regarding its social behavior. The organization is acting in a socially responsible way, by beginning a process in which the company goes completely carbon neutral across all of the company’s operations. Furthermore, each business unit will be responsible for its behavior. If the process fails Microsoft will lose a lot of money because it is a huge corporation. The program Microsoft is trying to achieve is good for the environment and makes the company looks good to the public (Grgurich, 2012).

Corporate social responsibility is becoming a key initiative and an essential tool in the growth of multinational corporations and the development of third world countries throughout the globe. The two concepts can work hand in hand to provide benefits for all; however difficulties in regulating and implementing corporate social responsibility need to be overcome before effective changes can be made.

The aim of this paper is to highlight the impact that Corporate Social Responsibility (CSR) has on company performance and profitability. It will also assess the role of CSR in business activities and in general the theoretical foundations as well as Corporate Citizenship. Furthermore this paper will assess the notion that implementing CSR activities positively affects the image of the organization and can thus boost consumers’ attention and commitment to the organization, which leads to better financial performance for the firm.

Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions. “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson 15). This paper will discuss the concept of corporate social responsibility. It will give the definition of the phrase, and identify some of the global factors that necessitate corporate social responsibility. It will discuss the importance of corporations setting up corporate social responsibility projects, and the impact these have on society. Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.

Before five years, I came across a situation which led me to think about the importance and need of social responsibility by business enterprises. To start off giving a brief background, my brother was a fresh graduate from the school of architecture where he got his first individual contract in India. He had to design a mall that was planned to kick start after a few years. The land where it was being constructed belonged to an old age home. It was a well-known home for old people to spend their remaining years. Being his first project, my brother was really enthusiastic and gave all his hard work. Later, he got to know about the old age home that was present there. He and his team were in a quandary situation of whether or not to appeal to their company’s executive board to discuss this issue. On one hand, they were pressurized by the board to complete the project on time, as millions of equities were at stake. Whereas, on the other hand, they were feeling a sense of immoral behavior on their part. His team came up with a proposal that was designed to support both, the mall and the old age home by retaining a part of this property with the latter. The proposal was rejected, and my brother and his team withdrew from that project. This experience was narrated to me by my brother, which drew me towards the need of the business houses to be sensitive towards the society. Therefore,