Managing Across Border Assignment 2022

8/19/2019
Running Head: CSR 0
Managing
Across Borders

CSR 1
Role of Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) is significantly increased in the business world
leading corporations to take advantage of society and consumers while benefitting them.
While undertaking CSR practices, their main motive is to care about environment, society
and human rights besides profit making. Epstein (2018) defined corporate social
responsibility as an initiative to measure and take responsibility for the organisation influence
on the society and environment in general. It also may be defined as “corporate citizenship”
where the company has to incur short term costs to encourage environmental and social
change while not providing instant economic benefit to the business enterprise.
It was found that many business firms are found challenging to fulfil the requirements of
current generation without comprising the capability of the next generation to fulfil their own
needs. In this competitive business situation, companies are being called to take upon
responsibility for the means their operations affect natural environment and societies. Both
large and small scale business firms are also asked to undertake significant sustainability
principles while the functioning of their business. This means CSR becomes an integral part
of corporate strategy of many companies that also helps them to use it as a defensive policy
(Carroll and Shabana, 2010). In terms of rationale of CSR, it can be based on a rational,
moral and economic argument.
Corporate social responsibility can be significantly said to be important in today’s world with
the continuing commitment and contribution to the economic development with improving
quality of life with keeping focus to both communities and society. A strategic approach to
CSR is progressively significant to business competitiveness. For instance, it can benefit the
company in various terms such as customer relationships, cost savings, risk management and
innovation capacity. It also promotes more environmental and social responsibility from the
business sector at a time when the emergency has negatively impacted customer confidence
and trust level incorporates. CSR requires engagement with external and internal stakeholders
allowing business to forecast better and take benefit if fast changing expectations in
operational and social conditions (Tang, Hull and Rothenberg, 2012). This implies that it can
also serve as a driver for building real growth opportunities and development of new markets.
In addition, enterprises can also develop long term consumer, employee and citizen trust by
addressing social responsibility and this, in turn, leads an innovative environment for

CSR 2
enterprises to grow. In today’s competitive world, it also helps to alleviate the social impact
of the crisis such as job losses considered to be as a section of social responsibility of
organisations. From long-term perspectives, it offers a set of value on which a more cohesive
society can be developed in transition to sustainable economic system (Jankalova, 2016).
Taking an example of one of the leading company i.e. Coca-Cola, it has a CSR program
known as 5×20. The aim of this program is to hire five million women in emerging nation’s
countries by 2020 in both distribution and bottling roles (expo2015.org, 2015). This aim goal
will not only help the women in the society close to Coca-Cola industrial plants but could
also assist the communities as a whole, as the enterprise goal is to offer greater access to
education and improved health care to their workforces.
In relation with other areas of importance, public image of a corporation also matters a lot.
According to research by Cone Communications, 9 out of 10 customers would abstain from
doing trade with a firm if they existed no business social responsibility plan (conecomm.com,
2013). For example, if an organisation is deeply intricate in the practice of donating funds to
NGOs and schools, customers are more likely to use their product. Other than this, the
company bottom line will significantly be influenced with the amount of positive media
coverage a business receives and with more media coverage business will likely receive with
the more benefits company do for the community. Corporate social responsibility also brings
out positive workplace environment as employees like working for an organisation that has
good public image and is continuously in the media for positive reasons (Petrenko et al,
2016). It can be said that happy employees always leads to positive output. In last, the
importance of CSR can also be seen in bringing long term corporate partnership that is
significant to the positive impact a business firm has on its local community and it also brings
additional awareness to the non-profit cause.
Being a good corporate social citizen can help the business to gain competitive advantage in
their respective industry. This is the reason why companies like Coca-Cola, Disney and GE
constantly rank globally as the most admired organisations. These organisations have showed
their pledge to the environment and local communities in which they function and also strive
to do business in a way that is sustainable, ethical and social. Considering a recent survey
raised by Nielsen survey, it was stated that 55 per cent of worldwide respondents is ready to
pay additional amount for product and services from business firms that are involved in
contributing better for the community (nielsen.com, 2013).