Importance of Corporate Social Responsibility

The provided essay explores the significance of corporate social responsibility (CSR) in today's business landscape. It emphasizes the need for organisations to adopt sustainable practices, reduce their impact on the environment, and promote ethical behaviour among employees. The essay concludes that CSR is essential for both organisational growth and societal well-being.

CONTEXT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Corporate social responsibility refers to managing the business process in such a way that
has a positive impact on society. It plays an important role in the success of an organisation. It
helps the business to be socially accountable to itself, its shareholders and the other public.
Changes are very necessary for an organisation. With the advancement in technology changes
can be easily made in context of the business to grow internationally. In this present essay will
discuss about the importance of ethics and CSR in global business environment (Aguinis, and
Glavas, 2012). The need for organisation to manage sustainably in relation to social, cultural,
economic and environmental issues. Apart from this the impact of CSR on leadership is also
discussed.
MAIN BODY
TASK 1
The success of business environment always depend upon the managers, as they are
responsible for formulating of the strategies in order to achieve the goals of an organisation.
With the advancement in technology, changes are necessary and they can only be achieved when
company sets some ethics ans well as are aware about their responsibility toward the society. Aa
company cannot ignore ethics because it is very necessary to run the operations of business
properly. Ethics of a business refers to the codes that govern about the behaviour of a person or
group of people. Ethics proves to be very beneficial for an organisation. Every individual will
work with an organisation who has fair and ethical practice. This in turn will helps in satisfying
the basic needs of employees. It also will help in building the employees engagement as people
always enjoy working with the company who has a strong public image. Organisation which
properly follows the ethics are always profitable in the long run. The reputation of business is not
only depend upon how much profit the company is earning rather it depends upon the
surrounding of the community. If company is not operated ethically the company cannot survive
properly in the long run. Profit maximisation is not only the main aim of organisation rather
contributing something to the upliftment of society is also necessary. CSR plays a crucial role
when organisation need to expand global. It tells about how the companies manages its operation
to produce an overall impact on the society (Cheng, B. 2014) It is important because it build the
image of company in the eyes of the public. They build the public image with the help of
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monetary donations of goods and services and offering of some services which are for the
upliftment of society. The companies performing the CSR helps in creating the awareness of
brand and easy recognisance which helps the company to sustain easily at the global level. They
help the company to differentiate them in the term of competitors as for following any activity
company need to consider about the social and environmental factors.
TASK 2
In order to run business globally, both individual as well as organisation is required to
manage responsibly and ethically. The feelings of Society should not be harmed if business is
operated at international level. Measures should be taken in order to provide such benefits which
are helpful in the term of social upliftment. The companies must take into consideration the taste
and preferences, beliefs and feelings of customers related to the use of some products or service.
If these needs are not analysed properly this will impact negatively on working of the company
such as sales, revenues and profit of the company(Crowther, 2018). Maintaining a proper social
responsibility within the organisation will ensure integrity of society and also has a benefit on the
environment. Culture factors basically depends upon the incorporation of the company and it
varies from region to region and person to person. The companies must work in such a way that
they do not harm the religion or tradition of a person. Every employees should be treat equally in
spite of any culture they belongs to. Environmental protection is one of the main aspect of CSR.
They aims to reduce the impact on environment which can be in term of use of the energy, use of
water or environmental friendly office and many more. A proper balance should be made in
order to sustainably make use of available resources. This would help in reducing the risk of the
business and also provides an opportunities for cost saving. Contributing to the environment will
also help in increasing the revenue of the company. Company must look after the economic
issues as this can have a negative impact on the growth of an organisation. They must disclose
the financial information in a proper way so that stakeholders shows a interest in the company. In
order to grow internationally, organisation need to know about the economic growth of the
company and build certain strategies to uplift the same. There is a big connection between the
leadership and CSR. As in order to build a sustainable world, leadership plays a crucial role in
promoting ethical behaviour of the employees so that they could provide them their own
contribution in the growth and development of their environment in a sustainable way. Leaders
should frame some of the strategies by which they are able to shape the organisation. They must
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tell about the importance of CSR among the other employees and also find the measures by
which can implement the CSR activities in their regular work (Servaes and Tamayo, 2013).
Leaders are responsible for framing the policies in a manner that didn't have a effect on
environment as well as culture of an organisation.
CONCLUSION
From the above mentioned essay it can be concluded that corporate social responsibility
has a importance for the society as well as organisation. These activities help in improving the
working condition of people and also fight against several environmental, cultural, social and
economic issues. In order to expand business globally, organisation must adopt some of the
changes with the advancement in technologies. Ethics must be properly followed with the
expansion of company.
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REFERENCES
Books and Journals
Aguinis, H. and Glavas, A., 2012. What we know and don’t know about corporate social
responsibility: A review and research agenda. Journal of management. 38(4). pp.932-
968.
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional
theory: New perspectives on private governance. Socio-economic review. 10(1). pp.3-
28.
Cheng, B., Ioannou, I. and Serafeim, G., 2014. Corporate social responsibility and access to
finance. Strategic management journal. 35(1). pp.1-23.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value:
The role of customer awareness. Management science. 59(5). pp.1045-1061.
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