To what Extent is Corporate Social Responsibility Beneficial to a Company’s Performance?

The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to

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.

In this article, “The Truth About CSR,” authors Rangan, Chase and Karim stress the importance in aligning a company’s social and environmental activities with its business purpose and values (Rangan, Chase, & Karim, 2015, 41). Outcomes of CSR programs should be a “spillover” and not a primary focus of a business, expressing concern towards social responsibility and corporations failing to contribute to society accordingly (Rangan, Chase, Karim, 2015, 42). There is a great deal of importance in companies refocusing their CSR activities on a primary goal and in providing an organized process for bringing consistency and discipline to CSR strategies (42). Rangan, Chase and Karim want corporations to understand why it is important for them to evaluate their CSR activities and refocus them towards the goal of reinforcing the firm’s societal and environmental actions, while also ensuring their actions add to the overall purpose and values of the corporation. According to the authors, even though

Proper implication of CSR can bring benefits to the organisation by increases in capital, sales, profit, markets, brand name, and customer loyalty.

Microsoft, Walt Disney, Google, BMW, Daimler, Sony, Intel, Volkswagen, Apple and Nestle are probably big company names that many have heard of. They are without doubt the sole powerhouses of their individual markets holding a big market share for themselves. But, despite the fact that they have that common factor, another thing that they have in common is that these 10 companies are the top ten companies with the highest CSR reputation in the world (SOURCE). CSR the acronym for Corporate Social Responsibility is currently a new business model that many businesses are starting to adapt. Throughout time, things improve and so do peoples expectations; CSR is a new model that incorporates things that people are more concerned with nowadays compared to the past. By requiring companies to spend more of their money on social responsibilities, CSR provides an opportunity for the companies to benefit more than just themselves in many different ways, but the question still lies at the point of to what extent does CSR benefits the companies themselves (SOURCE). There have been a lacking measurement in the actual benefits of CSR and companies are doubting whether or not CSR actually benefits company performance. Despite that though, there must be a reason as to why these powerhouses are incorporating CSR as their main business model and that reason would most definitely be that CSR benefits company performance in so many ways, both externally and internally, that no other business model

With an ever increasing quantity of business people and investors becoming more and more conscious of stakeholder welfare and their social responsibilities, engaging in CSR appears to be an economically sound choice, not only for investors with a conscience, but also to attract and retain employees with good qualifications who would compare working conditions and ethical conditions with other firms. (Is CSR the privilege of Developed Market Economies?)

Employees, as members of an organization, contribute a lot to the enterprise’s manufacture, management and profitability. Corporations’ CSR activities definitely have an enormous influence on the qualities of employees’ behaviors. (Nan, X. & Heo, K. 2007, p.65) Employees may react negatively when they perceive a corporate injustice because that implies a mismatching with their values and threatens their psychological demands. CSR activities on employees are consisted of many aspects, such as skill training, working condition, payment as well as health and safety. Every corporation has its own human and labor policies.

An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.

Corporate social responsibility, or CSR, is becoming increasingly important in the framework of modern businesses. Many companies do not place an emphasis on CSR because they are unaware of the range of benefits it can bring. Throughout this essay I will discuss the importance of corporate social responsibility by assessing the rewards that certain avenues of CSR conduct can bring to companies and how lacklustre attempts to do so can reflect poorly on the CSR field as a whole, resorting to questioning of its value. Firstly I will look at CSR from a corporate level, discussing international modelling and experience. This will be followed by assessing CSR from a managerial or operational standpoint covering the perspectives of managers and employees finishing with consumer perceptions and stakeholder vs. shareholder views..

Firms perceived to have a strong commitment to CSR tend to have an increased ability to attract and retain their employees (Turban) which reduces turnover and retraining costs. Similarly, it is normal for employees to evaluate the CSR performance of their firm to determine the relationship between their personal values and those of the firm. Peters (40) argues that firms that improve the working environment and labor practices tend to experience increased productivity and curtailed error rates. Periodic controls in the production plants ensure that employees work in conducive environments. Though search practices might be costly, the increased productivity of the workforce and increased quality of the output generate positive cash flows that cover the incurred costs. As such, a firm can benefit from the actions of CSR in terms of worker morale and productivity (Moskowitz)

Corporate social responsibility (CSR), which is a popular debate topic over decades, has divided into five major dimensions over time. They are known as the stakeholder dimension, the social dimension, the economic dimension, the voluntariness dimension and the environmental dimension in research (Dahlsrud, 2008). The relationship between CSR and company’s performance, which is classified as the stakeholder dimension, aroused a controversial discussion among different research studies. Some research reported positive relationship in CSR and company’s performance (Mirvis, 2012), some research found negative results (Karnani, 2010), while there are also other research view CSR as

Corporation are likely to experience competitive advantages by being socially responsible. The advantages that organization can experienced from adopting a successful CSR are intend to be intangible and long-term rather than tangible and short-term.(Lewellyn, 2005).

Corporate social responsibility(CSR) isn 't a new concern. CSR is usually a managing strategy where organizations integrate sociable and environment concerns into their enterprise surgical procedures and relationships with their stakeholders. The necessity for established social responsibilities in addition to ethical frameworks in business has become a key top priority within our existing modern society. This attitude is supported by the fact that the number of probably the most well-known global companies have been integrating corporate social responsibility (CSR) plans into their organization operations has never been greater. Various enterprises have been working on how social responsibility can bring benefits for business ? What aspects of CSR behavior are good for business ? what are costs related to such initiatives ? A variety of different arguments have been put forward about this issue. This essay will consider arguments for what reasons implementation of corporate social responsibility initiatives provides various benefits to organizations and these benefits outweigh the costs of such initiatives.

Corporate Social Responsibility (CSR) has become imperative on business convention nowadays. “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” (Holme and Watts, 2000). The term CSR was appeared in the 1950s, but until 1989, Ben and Jerry’s was the first company which truly publish a social responsibility report (Coles, 2012). In recent years, numerous organizations evaluate firms on their CSR performance since the society is concerned about the CSR ranking. Consequently, business managers in various countries may treat CSR as an inevitable priority (Porter & Kramer, 2006). Nevertheless, CSR is still a controversial issue in the world. Some businesses are struggling to balance corporate and social aims due to the growing societal attention in CSR. This essay will compare and contrast arguments in favour of and against CSR from the perspective of firms.

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.