Corporate Social Responsibility: Maintaining Social, Economic and Environmental Impacts

This report explains the concept of corporate social responsibility and how companies maintain their social, economic and environmental impacts. It also discusses the importance of CSR in maintaining good relations with the public, stakeholders and community. The report covers various practices performed under CSR, such as promoting education, improving mental health, providing employment opportunities, ensuring sustainability of the environment, eradicating poverty, helping backward class people, women empowerment, no gender discrimination, enhancing the social world, maintaining a healthy and safe environment, providing complete satisfaction to consumers and stakeholders, and contributing to the GDP of an economy. The report also covers the role of CSR in maintaining a good relationship with all the key elements of the business chain, such as stakeholders, supply chain, producers, employees, and the public realm.

COMPANIES & THEIR
PROFITS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Corporate social responsibility are those responsibilities which must be full-fill by every business
in the favour of society. These responsibilities are performed in order to maintain good relations
with the public, stakeholders and community. This report will illustrate the concept of corporate
social responsibility along with this it also clears that, how companies maintain their social,
economic and environmental impacts as well as their relationships with all the parties which are
involved with the association and performing the business activities.
MAIN BODY
Corporate social responsibility are the practices that must be performed by every corporation in
order to maintain the satisfaction level of the community. These responsibilities are important
from every perspective whether it is from business perspective, public's perspective or from the
environment's perspective. The CSR plays a major role in maintaining all the aspects of the
society and helps in linking all these aspects with each other. Companies who performing CSR
practices has been proved to be more ethical in terms of following business ethics and this helps
them in maintaining a good and long -lasting image in the society.
The practices which has been performed under CSR are promoting the education,
improving the mental health, providing employment opportunity, ensuring the sustainability of the
environment, eradication of the poverty, helping the backward class people, women
empowerment, no gender discrimination, enhancing the social world, maintaining healthy and safe
environment, providing complete satisfaction to the consumers & stakeholders and contributing in
the GDP of an economy. (Bianchi, Bruno and Sarabia-Sanchez, 2019). All of these practices are
performed during CSR. A business who performs all these responsibilities is growing towards the
success rate along with gaining profit, the CSR has been stated as one of the primary objective of
the company.
CSR has been considered as significant for the business and it is mandatory to be done by
every association in order to full-fill the social values and business ethics. There are certain
reasons for why it has been considered so much important for the firm and those reasons are, it
helps in improving the image in front of the public and promotes the brand image and makes
public aware about the company's product. It increases the engagement of the consumers which

helps firm to have a large market share. It also helps in reducing the cost of the firm by promoting
less packaging methods. This has been done in order to save nature and it is done by reducing the
process of deforestation. This helps firm in reducing the cost of the production as less resources
are required by the firm for the packaging process. And within this it promotes environment by
reducing the exhibition of natural resources.
CSR helps in providing opportunities to the women and encourages them to show their
talent. Various social campaigns has been done under this in order to increase the social values
among people. CSR performs all the mandatory activities towards social, economical and
environmental development. In terms of social development CSR promoting various camps which
providing people a platform to share their experiences and these camps helps in stimulating the
mental health of the people. (Rodriguez-Gomez and et.al., 2020). This helps in the economic
development by providing various job opportunities to the people and by contributing in the
government funds and GDP. The environmental factor has been considered as one of the most
important role in CSR.
The operational activities of the business impacts environment in bad manner. The waste
and smoke creates large amount of pollution in the society and this leads to many harmful effects
on the people as well as on the animals living in the society. CSR promotes the concept of
sustainability development in order to maintain the enhancement of the environment. The
sustainability development focuses on saving the environment. The concept of sustainability
focuses on the future aspects as well as it is focusing on maintaining the present environmental
issues so the upcoming generation lives in the safe and healthy environment. Re-use and recycle
of wastage has been done by the companies in order to decrease pollution and promoting healthy
environment.
The CSR performs all these functions so the business can maintain every aspect towards
the society. By full-filling social, economical and environmental aspects CSR automatically full-
filing the responsibilities towards the government. (Stonkutė, Vveinhardt and Sroka, 2018). The
democracy of a country demands from the business that all the legal ethics should be done by
every business in order to operate business activities and CSR itself is a part of this business
ethics. Any company which fails to achieve its legal ethics cannot survive for a longer period in
the society.

CSR is just not limited to maintaining the social, economic and environment factors. This
is a large concept which also involves having a good relationship with all the key elements of the
business chain. The key elements of the business chain are the stakeholder, supply chain,
producers, employees, and the public realm. In terms of stakeholder the company performs the
CSR by communicating all the policies of the companies and by ensuring them that they will be
given adequate and fair amount of profit. (Sinthupundaja, Chiadamrong and Kohda, 2019).
Stakeholders are the real key element of the firm as they show the high level of interest in the
business therefore, organization must involve them in decision-making of the company. They are
the investor for the firm therefore, they have complete right of knowing all the policies of the
company along with its impact as this will highly affect their investment.
As per the views of Joel Bakan it has been found that CSR helps in supply chain
management. The firm performs according to social, economic and environmental values with the
help of CSR in supply chain management. Under this, companies makes sure that the children are
not facing child labour issues. This has been done by keeping a check on the supply of labours, the
supply chain management makes sure that the labours they are providing to the firm are not below
the actual age of working. (Ullah, Hameed and Kayani, 2017). On the other hand supply chain
management maintain good connections with the suppliers and entitle them to provide such
resources which will not affect the environment and promotes sustainability. These steps by the
supply chain management enhances the overall reputation of the company and helps in
maintaining good connection with the society.
Producers are the people who carry out the production process. The producer itself
performs the concept of CSR by producing goods in such way in which there will be less or no
harm to the environment. The producers of the firm analyse every single method for the
production process and after the analysation he chooses that method which will have the less or no
harmful impacts towards nature. (Jamali and El Safadi, 2019). It is not an easy task, as producer
has to choose the combination of that method which promotes good quality along with less
pollution.
In terms of employees, CSR are performed by providing them a sense of safe and secure
environment at the workplace and along with this ensuring them fair salary. It also focuses on that
employees are not facing any kind of discrimination at the workplace. (Narula, Magray and
Desore 2017). Apart from this, it focuses on increasing the productivity level of the employees in

order to increase their growth rate. CSR also ensures that in the company the employees are
getting training for their job and their values and beliefs has been communicating. The companies
are putting a keen focus on maintaining the efficiency of their workplace and marketplace. This
has been done by reinventing the CSR in the favour of internal and external stakeholders. Internal
stakeholders are the employees, the firm performs CSR for the betterment of employees by
providing them a sense of safe and secure working environment. (Hadj, 2020). While external
stakeholders referred as the consumers, government, investors and community. The company
performs CSR towards all of them. In terms of consumer, the company provides them goods
according to their demand along with fair price. For government, CSR has been performed by
paying the taxes. In terms of investors, the responsibilities are performed by providing them good
amount of ROI. And by maintaining a good and healthy environment the company performs CSR
towards the community.
Public realm refers to the public policies which has been made by the government in order
to protect the value of the public. Government has declared some policies like the prices of certain
products should not exceed and the businessman must paid the taxes. (Monfort, Villagra and
López-Vázquez 2019). These policies are the part of public realm and this is mandatory to be
performed under CSR by every company otherwise the business will face many difficulties and
face certain obligations which results in the loss of image in front of the public.
CSR are just not for the people who are the consumer of the firm, the responsibilities of the
companies are also performed by them which illustrated their favourism towards aboriginal
communities as well. (Mazurbak, 2020). This has been done by providing them free educations,
eradicating their hunger through certain programmes, by charity and by opening various social
camps for them.
The companies perform CSR policies in order to maintain their two aspects. The first
aspect is to create higher profit as these responsibilities helps firm in creating a good image in
front of the public which leads to larger market share. (Rahman, Chowdhury and Rasid, 2020). On
the other hand second aspect is about maintaining a healthy environment by reducing pollution
and promoting sustainability. Thus, the companies performs these policies for maintaining their
own interest and as well as public's interest.
All of these factors which has been explained above are mandatory to understand by every
business as the complete understanding helps in applying the theories of CSR towards the

different aspects. (Demamu, 2020). A business should not just consider only profit as their
ultimate and final goal as there are many responsibilities comes under while running the business
and all these responsibilities should be seen as a primary objective of the business. The CSR sets a
base for the business so the association can increase its value in the eyes of the public. (Edinger‐
Schons and et.al., 2020). The business with a good record of performing CSR already has a large
consumer share as the people show high level of trust and faith towards that business who follows
all the business ethics.
CONCLUSION
From the above report it has been concluded that corporate social responsibility plays a
major role in every type of business organization. It just not focuses on the making of profit,
instead of this it focuses on the different ways by which the company can create a good image in
the mind of the public. Apart from this it has been also found that a business consists of so many
elements and all of these elements are parts of CSR. It has different aspects to look upon and every
aspect pushing the company towards betterment.

REFERENCES
Books and Journals
Bianchi, E., Bruno, J.M. and Sarabia-Sanchez, F.J., 2019. The impact of perceived CSR on
corporate reputation and purchase intention. European journal of management and
business economics.
Demamu, A.Y., 2020. Towards Effective Models and Enforcement of Corporate Social
Responsibility in Ethiopia. Mizan Law Review. 14(2). pp.276-309.
Edinger‐Schons, L.M., and et.al., 2020. Listen to the voice of the customer—First steps towards
stakeholder democracy. Business Ethics: A European Review. 29(3). pp.510-527.
Jamali, D. and El Safadi, W., 2019. Adaptations of CSR in the Context of Globalization the Case
of the GCC. In Globalization. IntechOpen.
Monfort, A., Villagra, N. and López-Vázquez, B., 2019. Exploring stakeholders’ dialogue and
corporate social responsibility (CSR) on Twitter. Profesional de la informacion. 28(5).
Narula, S.A., Magray, M.A. and Desore, A., 2017. A sustainable livelihood framework to
implement CSR project in coal mining sector. Journal of Sustainable Mining. 16(3).
pp.83-93.
Rodriguez-Gomez, S., and et.al., 2020. Where does CSR come from and where does it go? A
review of the state of the art. Administrative Sciences. 10(3). p.60.
Sinthupundaja, J., Chiadamrong, N. and Kohda, Y., 2019. Internal capabilities, external
cooperation and proactive CSR on financial performance. The Service Industries
Journal. 39(15-16). pp.1099-1122.
Stonkutė, E., Vveinhardt, J. and Sroka, W., 2018. Training the CSR sensitive mind-set: The
integration of CSR into the training of business administration
professionals. Sustainability. 10(3). p.754.
Ullah, I., Hameed, R.M. and Kayani, N.Z., 2017. Development of CSR through ethical leadership:
Constructive role of ethical culture and intellectual capital. Pakistan Journal of
Commerce and Social Sciences (PJCSS). 11(3). pp.977-1004.
Hadj, T.B., 2020. Effects of corporate social responsibility towards stakeholders and
environmental management on responsible innovation and competitiveness. Journal of
Cleaner Production. 250. p.119490.

Mazurbak, M., 2020. Impact sourcing: Theoretical analysis in relation to corporate social
responsibility in a globalised market. In Outsourcing in European Emerging
Economies (pp. 52-65). Routledge.
Rahman, M., Chowdhury, S. and Rasid, S.Z.A., 2020. Corporate social responsibility and firm
financial performance: Bangladeshi listed pharmaceutical companies. International
Journal of Emerging Technologies and Innovative Research (JETIR). 7(1). pp.213-222.