Why Should Businesses Practice Corporate Social Responsibility and Challenges

This presentation explores the role and importance of corporate social responsibility (CSR) in businesses. It discusses how CSR can enhance a company's position and brand image, attract employees and customers, and contribute to sustainable development. The presentation also highlights the challenges of practicing CSR, such as shareholder interests, competitive disadvantage, and impact on brand image.

Business Studies

Table of Contents
 Introduction
 Role and Importance of Corporate Social Responsibility
 Challenges of practising Corporate Social Responsibility
 Conclusion
 References

Introduction
If a organisation fulfils its requirement of being socially responsible, it
can enhance its position and brand image in the market and gain
competitive edge against competitors. Also, CSR programs help in
increasing employees' morale leading to an improvement in their
overall productivity.

Cont...
Such companies also have the advantage of attracting people who want
to make a difference to work for them. This presentation is based on
the topic “Why should businesses practice Corporate Social
Responsibility and challenges associated with the same.”

Role and Importance of Corporate Social
Responsibility
Corporate Social Responsibility refers to a business practise that is
mostly associated with the sustainable development of an
organisation. It is not harmful for the environment and has a positive
impact on the society. If a company conducts CSR activities in
regular intervals, it gets an advantage of standing out in the market
and attract more customers as people have become more conscious
about the environment.

Cont...
Corporate Social Responsibility gives the employees as well as the
customers a chance to contribute towards the welfare of the society
as well as environment. This helps organisations in achieving their
goals and objectives. Social responsibility is essential for a company
as it helps a business in becoming sustainable and save unnecessary
costs.

Cont...
Carrying out CSR activities attract new candidates and also help the
organisation in retaining existing ones. Thus, with the millennial
population growing increasingly, it has become essential for
organisations to incorporate a CSR model within their existing
systems that will help them in achieving goals and objectives
effectively. This is because customers are now becoming environment
conscious and the competition in the market is also becoming intense
day by day.

Cont...
Also, employees of different companies always seek organisations that
work for the welfare of the society as well as the environment and
thus are eager to work for and associate themselves with such
brands. The various functions of Corporate Social Responsibility
ensure a long term financial as well as sustainable health for the
company. Organisations can conduct CSR activities by reinvesting
their profits into the welfare of community and environment.

Challenges of practising Corporate Social
Responsibility
Corporate Social Responsibility is a continuous commitment of a
business to behave in an ethical manner and also contribute to the
overall economic development. There are various challenges that
come along with practising corporate social responsibility which
are explained below -
 Interest of shareholders
 Competitive Disadvantage
 Impact on the company's brand image

Cont...
 Interest of shareholders – When an organisation decides to
conduct a CSR activity, the costs of various operations go up that
are paid by the funds provided by shareholders. Therefore, this is
one of the major challenges that an organisation comes across
while practising Corporate Social Responsibility.

Cont...
Competitive Disadvantage – An organisation that has implemented
Corporate Social Responsibility in its system is likely to incur more
costs in order to complete its tasks as compared to organisations
that do not implement the same. Such organisations have the
advantage of offering products that are priced less to their
customers, thus gaining an upper hand in the market.

Cont...
 Impact on the company's brand image – When an organisation
practices Corporate Social Responsibility, it is bound to share
various disadvantages of their products and services with its
customers. Doing this, can sometimes impact the overall position
of the company in the market. This is because the business
environment is increasingly becoming more competitive as well
as dynamic.

Conclusion
From the above presentation, it can be concluded that it is important for
businesses to practise Corporate Social Responsibility as it helps
them in becoming more sustainable and gaining competitive
advantage. Also, consumers today are becoming more conscious
about the environment and thus this can act in favour of companies
in building a positive brand image in the market and attracting
potential customers apart from retaining existing ones.

References
 Buckley, P. J., Doh, J. P. and Benischke, M. H., 2017. Towards a
renaissance in international business research? Big questions,
grand challenges, and the future of IB scholarship. Journal of
International Business Studies. 48(9). pp.1045-1064.
 Cuervo-Cazurra, A., 2016. Corruption in international business.
Journal of World Business. 51(1). pp.35-49.
 Peng, M. W., 2016. Global business. Cengage learning.

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