Importance of Corporate Social Responsibility

The assignment has thrown light on analysing the importance of CSR activities in the organizations. The different advantages and disadvantages of the CSR program in the organization has been analysed effectively which can prove to be beneficial for the overall success of the organizations in the future.

Running head: CORPORATE SOCIAL RESPONSIBILITY
Corporate Social Responsibility
Name of the Student
Name of the University
Author note

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Executive Summary
The assignment has thrown light on analysing the importance of CSR activities in the
organizations. The different advantages and disadvantages of the CSR program in the
organization has been analysed effectively which can prove to be beneficial for the overall
success of the organizations in the future.

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Table of Contents
Introduction................................................................................................................................3
Importance of Corporate Social Responsibility.........................................................................3
Advantages and Disadvantages of Corporate Social responsibility in Organizations...............4
Analysis of Role of CSR in Current Business Scenario............................................................5
References..................................................................................................................................6

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Introduction
The assignment throws light on understanding the significance of Corporate Social
Responsibility in different corporations. CSR is the broad term which helps in describing the
efforts of the organization to improve the society in an appropriate manner — these kinds of
initiatives ranging from providing financial help to the nonprofit companies along with
implementing policies which are environment friendly for the organization. CSR is the
ongoing assurance by the company to contribute towards fiscal development and
betterment of the quality of working .
Importance of Corporate Social Responsibility
Corporate Social Responsibility provides chance to the different employees in the
organization for contributing towards the society. Due to the implementation of the corporate
social responsibility, there will be greater engagement of the various employeesin which this
is required to be ensured that employees are aware of the CSR strategies. Furthermore,
employees feel more committed towards the work performed by them when they observe
there are different human rights policies followed by the company (Dhanesh 2014).
For example- InCoca-Cola, the CSR model helps in committing to the fair along with
dignified treatment wherein local people with local resources to 90% of production.
Moreover, they are seeking to maximize the value of the shareowners and the employees
while they are mindful for the overall responsibilities effectively.
Furthermore, there will be cost savings such as less usage of packaging which will be
helpful in decreasing the cost of production efficiency. Moreover, this will be providing a
big advantage for the company against different competitors. By embracing the various CSR

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activities, the company can be committed to taking a step forward in comparison to the other
competitors by considering the environmental and social factors (Singhapakdi et al. 2015(.
For instance-Starbucks has developed strong along with long-term relationships with
the farmers in the year 2015 which helped them in ensuring high quality coffee to the
customers. By the year 2015, more than 100% of the cups were recycled which assisted
Starbucks in reducing the environmental footprint through water and energy conservation.
Merits and Demerits of Corporate Social responsibility in Organizations
There are different merits and demerits of CSR in the various organizations which is
inclusive of the following:
Advantages
 This helps in improving the overall image of the corporation as by implementing CSR
activities; this will increase the goodwill value. By involving into different kinds of
sustainable environmental aspects., this will allow the company to gain a reputed
position (Lee et al. 2017)
 The popular principle of the business is related to the excellent publicity as the good
CSR program will provide excellent advertising as the advertisement for the company
effectively. This will set the company apart from the other competitors who sell a
similar product at lower rates (Schwartz 2017).
Disadvantages
 The reputation of the company takes a hit as due to the CSR programs and policies,
the organizations need to reveal the different shortcomings of various products and
services and if the company is found guilty of violating the same, this will be risky for
the brand image of the company (Jamali, Lund-Thomsen and Jeppesen 2017). For

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instance- The car manufacturing organization Volkswagen has faced different issues
related to the diesel-gate scandal as there was huge emission that was spread by the
vehicles manufactured by them and this affected the reputation of the organization
negatively.
 There are different legislations and provisions related to CSR as the value of CSR
differs in various contexts which is dependent on geographical locations in different
countries. Furthermore, there is an increase in cost production of the company
wherein expenditure has reflected an increase in different prices.
Analysis of Function of CSR in Present Scenario of Business
CSR plays a significant role in the present scenario wherein this helps the business in
the retention of valuable customers in the competitive business environment. According
toGrayson and Hodges (2017), nine out of ten consumers would be retained from doing
business with the corporation and the contribution of their efforts will help in making the
world a better place.
Furthermore, there will be differentiation in the brand which provides proper
opportunity to stand out of the competitors. In the present era of social media, the
participation in the different CSR programs for environmental protection will be beneficial
for the overall success of the firm regarding the competitive business environment. Lastly,
the employees work harder along with staying with the organization longer which will
improve the overall efficiency of the firm in the current business environment which is
competitive.

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References
Dhanesh, G.S., 2014. CSR as organization-employee relationship management strategy: A
case study of socially responsible information technology companies in India. Management
Communication Quarterly, 28(1), pp.130-149.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Jamali, D., Lund-Thomsen, P. and Jeppesen, S., 2017. SMEs and CSR in developing
countries. Business & Society, 56(1), pp.11-22.
Lee, S.Y., Zhang, W. and Abitbol, A., 2017. What Makes CSR Communication Lead to CSR
Participation? Testing the Mediating Effects of CSR Associations, CSR Credibility, and
Organization–Public Relationships. Journal of Business Ethics, pp.1-17.
Schwartz, M.S., 2017. Corporate social responsibility. Routledge.
Singhapakdi, A., Lee, D.J., Sirgy, M.J., and Senasu, K., 2015. The impact of incongruity
between an organization's CSR orientation and its employees' CSR orientation on employees'
quality of work life. Journal of Business Research, 68(1), pp.60-66.