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Corporate Social Responsibility Essay

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To what extent is Corporate Social Responsibility beneficial to a company’s performance

Corporate Social Responsibility is a philosophy that relates to a business being a part of the society, so acts in a way that not only advances its own firm but also serves the society as well. Good ethics is the cornerstone of sustainable development. In the long run, unethical behavior may harm customers and the society as a whole. Furthermore, it damages a company’s image, efficiency and effectiveness in operations. In some extreme cases, it may jeopardize the company’s survival. As a matter of fact, the behavior of a firm will be judged by the groups of the society. Their judgments and responses will have an impact on the performance of the …show more content…

The definition of sustainable development is put forward by the World Commission on Environment and Development (1987), which says that SD is: ‘Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.’ Retaining existing customers is important to companies. As CSR enables corporations to improve their products and services in order to meet public’s expectations, they deliver superior value to the existing customers. A favorable image helps the company to keep customers from switching to its competitors. At last, corporations can maintain a long-term relationship with their loyal customers and they will buy more products. CSR is a sustainable concept because it does not only serve the present customers but also the future generations. A healthy environment, prominent economy and sound education system are what society desires in the future. Some banks in Hong Kong (e.g. Heng Sang Bank) provide financial aid to Hong Kong’s University students. The aim is to enhance the labor quality, so that turnover rate and absenteeism will be reduced as a result of these kinds of social programs. Therefore, corporations direct resources in CSR in pursuit of gaining good reputation. It is beneficial to company as well as the present and future community. Consequently, the performance and profitability of corporations will be maintained in the

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