To What Extent Is Csr Beneficial to a Company's Performance

Based on my interpretation of CSR, I see it as a voluntary obligation that companies have promised to their stakeholders to fulfill by improving, or at least not harm, the environmental and social wellbeing. When companies engage in CSR, they voluntarily promise to, for example, carry the responsibility to protect the environment and take actions against bribe or other corruptive activities related to their business. It certainly has some positive influences to specific areas based on my knowledge gained from other classes; nevertheless, when judge CSR in the context of total impacts on our society and environment, it is obvious that CSR has failed its mission to lessen the negative impacts of business based on the evidences that provided by the author. Also, since there is a strong positive relationship between CSR behaviors and consumers’ reactions to a firm’s products and services, it seems to me, now, that CSR for the most companies is just a fancy cover that helps them to create or promote a good image and reputation. The recent case that shows the failure of CSR of Volkswagen even make me believe that CSR programs may be just a marketing or public relation exercise for many

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 term "corporate social responsibility" came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organization 's activities have an impact. It was used to describe corporate owners beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach in 1984.[2] Proponents argue that corporations make more long term profits by operating with a perspective, while critics argue that CSR distracts from the economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.

Corporate social responsibility is just good public relations for some firms because they only use it to expand their business and customer base , increase their customer loyalty by improving their reputation also corporate image for potential investors and shareholders the right political spectrum supports the idea of corporate social responsibility lacking legitimacy of either market or political system , this is supported by the philosopher Elaine Sternberg who believes that using business resources for non-business purpose is theft . If firms approve of this arguments than they use CSR only to boost their profits

However engaging in CSR is being ethical and sensitive towards the things around the company, it can also instigate some kind of social irresponsibility. There are entities that try to pursue socially responsible agendas but end up behaving in a socially irresponsible way

In recent years, there have been a growing number of companies that have an explicit Corporate Social Responsibility (CSR) plan. As stated by European Commission (2001), CSR is defined as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” It is believed that the motives for CSR are gradually converting from philanthropic rationale to performance-driven orientation, but the question of better company performance resulting from the implementation of CSR has often been the centre of debate. The purpose of this paper is to examine how CSR can positively contribute to company performance, which refers to the quantitative

Throughout the years, this statement has been debated and criticised by many scholars such as Mcwilliams and Siegel(2001) and they noted CSR as an ‘action that appears to further some social good, beyond the interests of the firm and that which is required by law.’

- Donaldson T., (1989), The Ethics of International Business, The Ruffin Ser ies in Business

Carroll’s CSR model can correspond with the various levels of a company’s development. At the initial stage, economic interests are the most important factors to be considered by a company when making decisions. As the business grows larger, the society may have greater expectations to it, and the company may try to generate long term benefits by building a good corporate image, therefore, other issues will also be considered.

Over past four decades, relationship between CSR and Financial performance has been analyzed by large number of empirical studies. These results indicate that there is positive relationship between CSR and corporate financial performance (CFP). The result shows that misdeeds of the corporation negatively had negative impact on shareholder’s wealth. The relationship between CSR and CFP depends upon firm, industry and timings. It also includes the relationship with company’s stakeholders.

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.

The advantages of CSR are more as compared to disadvantages. Attig, Najah, in 2013 discussed about the economic advantage of CSR told that it effects the credit ratings of company. Credit Ratings of a

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.

Business and society are interdependent. The wellbeing of one depends on the wellbeing on the other. Companies engaged in CSR are reporting benefits to their reputation and their bottom line.

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.