Corporate Social Responsibility

Corporate social responsibility (CSR) is a form of a self regulation mechanism that is being integrated in most business models. Under this approach, a company tends to develop a sense of responsibility towards the environment and community as a whole. Many stakeholders are targeted including shareholders, consumers, community and employees among others. For the community, it is attained by reducing environmental pollution such as noise, water and air pollution. The aspect has prompted many organizations to practice green economy in the production of goods and delivering of services. Green economy ensures that emission of green house gases have been minimized to the lowest levels (Adetule, 2011). Companies that aim at attaining this achievement need to make sure that their carbon foot-prints are at the lowest levels possible. This is attained by reducing the size of the products being manufactured and nature of material being used. Companies dealing with technological gargets like mobile phones are reducing the sizes effectively. The motor vehicle industry has embraced the need of developing hybrid vehicles that are propelled by motor energy. This eliminates the usage of petroleum products that are a major pollutant to the environment.

Offering consumers best services is also a way of showing corporate social responsibility. Most organizations are achieving this by providing training services to their employees on how to handle customers at all times. Failure to adhere to some of these stipulated acts, might lead to termination of one’s contract. Participating in community activities has come to be recognized as an emerging trend in the field of corporate social responsibility. This activities include fund raising, visiting children’s home, participating in community sports and other community activities that are valuable to the society. This is an indication that a company is concerned about the people around it, and is working to make their lives better. It has even become a popular mechanism for companies that are aiming to build their brand. This is because it becomes easy for the community to associate itself with the product or service being offered.

Employees on the other hand are targeted by being provided with favorable working environment. This ranges from the remuneration aspect to how the management interacts with the junior employees. They are a vital organ in an organization if any success is to be attained. Keeping them happy brings positive results to both the employer and the employees themselves. A motivated employee will always work better compared to one that has issues with the organization. Shareholders on the other hand are taken care of by ensuring that their funds have been invested wisely. It is the duty of a company to ensure that there are no ultra-vires transactions being conducted. If it happened, it would mean that the shareholders’ funds are not being used in the appropriate manner since that is not what they signed for (Schermerhorn, 2010). Paying them their dividends on time also plays a vital role in ensuring corporate social responsibility.

There have been different opinions regarding the results that can be attained by implementing corporate social responsibility. Some of them are positive while others are negative. Some people tend to think that CRS is a “fad” that is likely to come to an end. However, others are of a different opinion, citing that it will be a backbone for company’s operations in future. Nevertheless, the rate at which companies are adopting this prospect is overwhelming.

There are various reasons that prompt companies to engage in corporate social responsibility. Among them is adhering to government regulations. Due to increased global warming and environmental pollution, the government has brought forward some regulations in order to curb the spread of these activities. This includes putting up carbon foot-print levels that companies should not exceed. This aspect prompts organizations to rethink their business model in order to attain the stipulated levels. These regulations usually affect companies that deal with the manufacturing process. They are forced to change their raw materials or reduce the size of their products significantly (Hawkins, 2010). Reducing the size of the electronic products usually means that less green house gases will be emitted while the product is being used as compared to the previous package. Failure to meet this directives, results to pollution taxation. Under this approach, an organization is taxed based on the level of its carbon footprint. The amount that exceeds the stipulated level is due to a fine. This becomes costly to the organization, in the long-run. In order to avoid such experiences, organizations are forced to adopt the concept of corporate social responsibility.

Need to attract a competent workforce has also contributed to CSR endorsement. The labor market is becoming very competitive as many players have joined in recent times. Inclusion of many companies is bringing the balance between labor being supplied and the demand for this labor. Young recruits are not only after favorable remuneration. Most of them want to work in organizations that seem to be socially responsible. This is due to the pride that it brings when they are talking to their friends regarding their employer. As a result, organizations have been forced to adopt CSR in order to attract such employees. Employees are a backbone to any organization attaining success in its endeavors.  If the employees are not competent, less will be achieved.  A lot of funds will also be used in the training programs that are instituted in organizations (Schermerhorn, 2010). In the long-run, this will give companies with competent employees a competitive advantage. The fear of this prospect makes organizations do anything possible in order to attain the best from the labor market.

CSR has also been adopted due to the powerful competitive edge attached. When a company integrates a CSR program, every party to the supply chain must adhere to the new regulations. It becomes possible for an organization to attain lucrative contracts with such an initiative. This is because people want to be associated with companies having good reputation. They feel safe and are sure that their needs will be satisfied. The idea helps a company develop a competitive advantage over other companies that have not adopted the initiative.

Enhancement of brand awareness also contributes significantly in the adoption of corporate social responsibility. A company that features in many community activities tends to get attention from the media. To some extent, this becomes like a form of free advertisement since it is indirect. Some of the prominent brands in the world have risen due to the ethical values involved. Such instances trigger companies to adopt the CSR program.

Corporate social responsibility has several benefits for the companies involved in its implementation. Among them is development of favorable government relations. When a company institutes CSR programs, it has an easy time while dealing with government regulators and politicians. This is because they have adhered to the pollution regulations set forward. Such companies have also established some community developments along the way. This brings a sense of good faith between the organization and the government since it enhances economic development in the region involved (Mallin, 2009). In future, the government will develop policies that favor such organizations. This help the organizations involved to remain operational for as long as possible. The profitability aspect might also increase due to the positive relations.  Relations developed might result to the company clinching government contracts in future. This acts in opposite to other companies that are reckless in their social responsibility fulfillment. There are a lot of probes and inquiries from the government. Most of these probes are triggered by the community due to the experiences they have had with the organizations. This results to mitigations and law suits, which tend to be costly to organizations. Such instances reduce profits and brand value, in the long-run.

CSR helps in developing employee engagement in the running of company affairs. This brings about a positive workplace environment. When employees have a feeling that their organization is socially responsible towards their lives, it brings enthusiasm and prompts them to become more engaged. There is a sense of belonging that develops. Every activity is treated as personal hence every employee wants to see it succeed.  This improves the work rate of every employee hence the productivity in the entire organization is raised. As the production levels increase, sales levels will increase. An increase in sales results to an increase in profits.

Another benefit that emanates from CSR is social media visibility. Organizations that tend to participate in numerous community projects receive more attention from the social media. This works positively since it helps in building a company’s brand. Many people want to be associated with what the company has to offer, hence the desire to promote the brand (Mullerat & Daniel, 2011). This is a good form of advertisement whereby the organization is not required to bring in additional funds for the process.

CSR brings the benefit of positive public relations. Public relation is necessary for developing a positive perception among consumers regarding a company’s products or services. A favorable image tends to attract more consumers. It is advisable for a company to publicize its social responsibility activities. This is because it gives potential consumers an idea of what the company is capable of offering. A positive image will attract a consumer even unconsciously. This are instances where a consumer says that he or she is not sure of how he started using a certain company’s products.

In conclusion, corporate social responsibility is becoming a trend in the business world. Many organizations are adopting the ideology due to various reasons. Regardless of the reasons, the benefits associated with CSR are numerous. There is no collusion with the government, it’s a publicity stance, reduces company’s costs, and creates a competitive advantage among others. This might tend to be the trend in all industries in some years to come.  Most companies have already prepared themselves strategically for this occurrence. No one wants to be taken by surprise when the business world gets revolutionized (Banerjee, 2009).


Work Cited

Adetule, Jide. Handbook on management theories. Bloomington: Author House, 2011. Print.

Copy & Paste

Banerjee, Subhabrata Bobby. Corporate social responsibility the good, the bad and the ugly.          Cheltenham, UK: Edward Elgar, 2009. Print.

Hawkins, David E.. Corporate social responsibility balancing tomorrow’s sustainability and          today’s profitability. New York: Palgrave Macmillan, 2010. Print.

Mallin, Chris A.. Corporate social responsibility a case study approach. Cheltenham: Edward       Elgar, 2009. Print.

Mullerat, Ramon, and Daniel Brennan. Corporate social responsibility: the corporate         governance of the 21st century. 2nd ed. Alphen aan den Rijn: Kluwer Law International ;,             2011. Print.

Schermerhorn, John R.. Management. 11th ed. Hoboken, N.J.: Wiley ;, 2010. Print.