Corporate Social Responsibility and Its Contribution to Economic Growth

This article discusses the importance of Corporate Social Responsibility (CSR) and its contribution to economic growth. It covers different approaches of CSR and its role in rebranding of products and establishment of public relations. The article also mentions the top 5 corporations with the best CSR in the world in 2022. Desklib provides study material with solved assignments, essays, dissertations, and more.

Business Law and Ethics
(Assessment 2)

Table of Contents
INTRODCUTION……………………………………………………………………………3
TASK…………………………………………………………………………………………….3
Corporate Social Responsibility........................................................................................................3
CONCLUSION……………………………………………………………………………………6
REFERENCES……………………………………………………………………………..7

INTRODUCTION
Corporate Social Responsibility (CSR) is an initiative which many companies include in
their structure to monitor their organization in the vast field of competition where other companies
are taking initiatives to take a step forward to help the society in a broader way. Companies put their
effort to have a positive impact on the people, environment, and society all over the world through
their product or organization. Companies build their social reputation by the method of (CSR)
through taking the responsibilities of leaving the positive light on people at large by reducing
environment impact by their work, supporting diversity equity and inclusion, and enhancing health
and wellness of the people (Al-Shammari, Banerjee and Rasheed, 2021). It is a management
concept where companies support the social and environment concerns in their business with other
shareholders and other companies through public speaking, dealing, or advertising their products.
There are many corporations which shows concern about these causes for the better CSR of their
companies. This report will cover different approaches of CSR and its contribution in the economic
growth of the nation. Further, it will discuss CSR role in rebranding of products and establishment
of public relations and inspiring employees from initiatives and actions taken by the organization.
MAIN BODY
TASK
Corporate Social Responsibility
Corporate social responsibilities are an initiative taken up the company without having a legal
obligation. This deals with the environmental and social impacts. The CSR is good for the planet,
for the employees, for the customers. Corporate Social responsibilities contribute the betterment of
the sustainable development of the society’s health and the welfare. The CSR is important to build
an impact within the society as while contributing for the development of the society is always
appreciated by the people of the society. There are many benefits of Corporate social
responsibilities which are improved image in the public, it is important to have a good image in the
society within the consumers as to the growth of the corporation. The work done by members of the
organisation can be as simple as volunteering working in a charity may be for once or twice in a

month or may be by just helping the people in need. The brand name of the organisation taking
initiative in the CSR gets increased as the people get to know about the work done by the
organisation under the head of the CSR, may be by donating a huge amount of donation to a new
start-up which works on the betterment of the environment and even for the society (Baskentli, Du
and Bhattacharya, 2019). The company being active in the CSR, gets benefit in the mood of
increase in their production, their money value increases as more the people know about the
company more will be the production. For example, Mama earth company, takes an initiative of
planting a tree with the purchase of every sold product, the number of products sold will decide the
number of trees grown, hearing about this people have started purchasing the products as to be
fascinated by the scheme they offer.
The corporate social responsibilities do not only benefit the company taking an initiative of helping
the society but also the society being helped. For example, if a big and know company is helping a
charity, be it with momentary help or with labour help it will affect in the development of the
charity. If an NGO is being helped, then the name of the NGO will get famous and others who did
not any knowledge about the NGO will get aware about the same, and even the NGO will be able to
work on its desired goals without facing challenges in the field. There are majorly four areas of
corporate social responsibilities which are environmental, ethical, economical and the Philanthropic
responsibilities. In the environmental responsibilities, the motive is to benefit the environment in
which every way possible, that could be by taking small steps, asking all the employees of the
corporate office to use public transport or do a carpool once in a week so to decrease the use of fuel
and decrease the pollution released by the transports (Nave and Ferreira, 2019). Use of reusable
items or recycled items rather than use of plastic, use of solar plants for generating the electricity for
the offices, it saves the environment.
The ethical responsibilities are mainly making and taking fair decisions irrespective of the status of
the person. Everyone should be treated equally the organisation and not based on their position in
the organisation, the punishment for a mistake should be equal and same for every individual. The
organisation or a company should treat all its clients and consumers equally, the equally treat to
everyone will increase their sale and will maintain their personal relations with the customers and
the clients. For example, the leave policy in an organisation should be same for their every
employee whether a manager or a clerk, it should be the same. The economical responsibilities are
that the company is investing their amount in a good cause, in the other responsibilities. Its main
motive is to help the needed, may be an organisation that provides free legal aid who cannot afford
the cost of a lawyer so the company can donate a hand full of amount to the organisation, so that is
beneficial for them while fighting the cases in the court. The philanthropic responsibilities are in
which the corporate organisation develops its own charitable trust, may be an NGO or making a

new brand name. For example, Famous actors or sports players make their own brands in the
society. It is therefore, understood that the corporate social responsibilities are beneficial for the
society as well as the individual, helping others always gives a bigger name and CSR is indirectly
either helping the society, the organisation, or the individual.
There are many corporations which shows concern about these causes for the better CSR of their
companies. Some of the top 5 corporation with the best CSR in the world in 2022:
1.) ROLEX: This corporation is on the top of the list of CSR by their work and ethics it remained
one of the most reliable and trusted brand who supports the global environment and public by
focusing on the area of making positive change into the society and benefiting different segments of
the society specially the underprivileged and differently able people.
2.) FERRARI: Remaining on number 2nd it is one of the corporations which plays the vital role
with the emotions of their customers as per the CSR report of 2022 Ferrari has taken a step forward
by signing a “green electricity contract” which will lead to the construction of a 56 megawatts
photovoltaic power plant in the south of France by 2022. By this project it will be supporting local
development and agriculture activities, environment, and sustainable innovation.
3.) LEGO: As the world is suffering from the plastic pollution, people are becoming more
conscious about choosing the products. Recently Lego has announced that they will replace the
plastic packaging to the paper packaging for all their products and make their paper blocks instead
of plastic made from materials like sugar cane (Adnan, Hay and van Staden, 2018). They will install
the solar panels at all their factories and cut out water usage by 10%. Through these CSR Lego has
won the hearts of people who are concern about the global issue of environment.
4.) ROLLS ROYCE: By understanding and minimizing the impact on environment this
corporation stands still on the 4th position in the CSR list where, it is making a positive change in
the society by helping and uplifting the lower class through their actions globally also through their
decarbonization strategy it will become net zero carbon company by 2050.
5.) Mercedes-Benz: This organization is on 5th, but it has built their reputation according to the
serious work it has done by helping the people of Maharashtra by installing solar ecosystem in 30
rural schools, provided sustainable water consumption to support the government of Maharashtra
and this is not it, this organization has initiated the Mangrove Restoration Project that will help in
restoring 90 hectares of mangroves over Pullicat Lake and Sundarbans.
The Corporate Social Responsibility is directly and indirectly affecting the internal and external
environment in which stakeholders such as employees, consumers, managers, and customers are
considered as vital part of an organization. It helps to evaluate the performance and brand
recognition in the market. Due to emergence of globalization and industrialization, the demand of

CSR policy is the current demand to analyze the risk and benefits associated in an organization. A
society is a social and ethical responsibility of every organization because it provides them various
resources and opportunity to grow so, it is their duty to return them by framing many plans and
policies for the betterment of society (Zhang, Oo and Lim, 2019). The increase in economic
activities contributes to their own wealth and overall growth of an economy by considering the
policies to make effective decision for the welfare of society. CSR includes corporate
accountability, corporate ethics which is trending policy of a modern business for corporate
sustainability. There is no specified definition of CSR, but different Business bodies and entities has
identified the necessity of framing plan and policy to bring transparency in the corporate world. The
United Nation Organization for Economic Co-operation and Development (OECD) is increasingly
raising CSR concept all around the world. It covers health and safety policies for employees,
environment protection for the societal safety, promotion of health and education sector to maintain
and establish public goods. It is a tactics used by the organization to attract the investors to raise
financial resources to operate a business. It also brings satisfaction among the employees and
reduce employment turnover of an organization. It enhances the overall performance of an
organization and helps to gain competitive advantage in the market (Nofsinger, Sulaeman and
Varma, 2019). The cost-effective strategies and cost saving method of production is identified as the
systematic approach to make continue improvement to stream profit and revenue. A good CSR
policy is an alternative system of effective management. It is legally compliance which is binding
on an organization to deal with dynamic and diverse business culture. The Companies Act, 2006
requires an organization to add environmental issues in their business plan to govern the corporate
activities. It encourages the employees to make continuous improvement in the organization and
understand the needs of maintaining public relation with the society.
CONCLUSION
Corporate Social Responsibility is one of the most important aspects for any corporation to
get a hold on any business and set up the movement throughout the globe that will help more people
across the world plus it will save the environment from all the causes which have led the
atmosphere to collapse in an alarming rate. These are the top 5 corporations in the world who are
taking initiatives to help people shaping the better and secure future regardless of what the
challenges are. By the CSR report of 2022 these companies have secured the best CSR in the whole
world and making a global change. It is a technique or method of establishing brand value in the
market by giving significant importance to the social needs. It adds value in the profitability of an
organization and boost the company’s brand identity in the market. Business that wants to grow
internationally, they are required to perform their ethical and social responsibility to meet the vision

and mission of a company. CSR helps in developing policy and strategies to sustain long term
growth of an organization. It also builds strong relation among the employees as it is a voluntary
activity which highlights a concern for stakeholders.
REFERENCES
Nave, A. and Ferreira, J., 2019. Corporate social responsibility strategies: Past research and future
challenges. Corporate Social Responsibility and Environmental Management, 26(4), pp.885-901.
Adnan, S.M., Hay, D. and van Staden, C.J., 2018. The influence of culture and corporate
governance on corporate social responsibility disclosure: A cross country analysis. Journal of
Cleaner Production, 198, pp.820-832.
Dmytriyev, S.D., Freeman, R.E. and Hörisch, J., 2021. The relationship between stakeholder theory
and corporate social responsibility: Differences, similarities, and implications for social issues in
management. Journal of Management Studies, 58(6), pp.1441-1470.
Al-Shammari, M.A., Banerjee, S.N. and Rasheed, A.A., 2021. Corporate social responsibility and
firm performance: A theory of dual responsibility. Management Decision.
Ruwanti, G., Chandrarin, G. and Assih, P., 2018, December. Effect Of Corporate Governance On
Relationship Between Corporate Social Responsibility And Firm Sizes With Earnings Management.
In 3rd International Conference of Graduate School on Sustainability (ICGSS) 2018.
Nofsinger, J.R., Sulaeman, J. and Varma, A., 2019. Institutional investors and corporate social
responsibility. Journal of Corporate Finance, 58, pp.700-725.
Zhang, Q., Oo, B.L. and Lim, B.T.H., 2019. Drivers, motivations, and barriers to the
implementation of corporate social responsibility practices by construction enterprises: A
review. Journal of cleaner production, 210, pp.563-584.
Baskentli, S., Sen, S., Du, S. and Bhattacharya, C.B., 2019. Consumer reactions to corporate social
responsibility: The role of CSR domains. Journal of Business Research, 95, pp.502-513.