Why Companies Should Engage in CSR in the Community?

610 Words2 Pages
WHY COMPANIES SHOULD ENGAGE IN CSR IN THE COMMUNITY Controversy exists as to whether companies have a duty to recognize and fulfill their corporate social responsibility (CSR), or whether it is sufficient for them to discharge their business functions while complying with the law. The opponents of CSR argue that managers are custodians of shareholders' wealth and should only engage in business functions that they are qualified in, leaving social functions to be performed by the government. However, CSR has now become a strategic part of business activity because it enables companies to gain legitimacy and approval of the community to ensure their survival, while contributing towards profitability. One of the main arguments against CSR efforts is that such efforts distract from the primary objective of businesses profit making. This argument is based on an erroneous assumption that areas of CSR are naturally divorced from business interests. The reality is that businesses can align their CSR strategies with their corporate strategies to facilitate business success. A firm that invests in efficient resource extraction methods finds that it can help clean the natural environment while ensuring resource availability down the years. Similarly, businesses that follow non-discriminatory policies at the workplace may be able to make their products attractive to more segments of the society. A second argument against CSR efforts is that by engaging in such activities business
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