Corporate Social Responsibility and its Impact on Company Performance

management

Corporate Social Responsibility (CSR) is beneficial to a company’s performance? What
stance should companies therefore take towards CSR initiatives? Illustrate your answer with
reference to companies within a particular industry.
Introduction
This essay brings out a discussion on deep understanding of CSR. Corporate social
responsibility is a term, which is used to describe the company`s endeavours in order to
improve the society. The purpose of this essay is to examine and analyse several activities
and practises, which a company executes in order to carry out its social responsibility. The
essay also reveals every related social responsibility in association with fast moving
consumer goods (Tesco PLC, 2019). Moreover, business executives have been continuously
facing the complex strategic allocation of resources that cannot only be achieved by
accomplishing the financial results. It is extremely important to evaluate the expectations of
the society and the stakeholder. In order to satisfy the stakeholders, the company has to
execute the social and environmental responsibility that has been impact on corporate
strategy. An obligation or assurance to execute social responsibility contributes to sustainable
economic development by working with the employees, local communities and families
(Goergen, & Renneboog, 2016).
Analysis
Corporate Social Responsibility (CSR) is a company’s step to measure and take responsibility
of the company’s effectiveness on environment and society’s activities, which may consider
donating money to non-profit organisations to implement the environment friendly policies at
the workplace. The potential benefits of CSR to the companies includes positive business
reputation and better brand recognition, better financial performance, easier access to capital,
operational saving, and organisational growth, which will lead to customer loyalty and
increased sales (Goergen, & Renneboog, 2016). In order to analyse the four benefits of CSR,

the very first factor deals with world player, company`s reputation, improved financial
performance, and employee retention. If any company in the world has all the above
characteristics and comply with CSR than it would make it a true excellent player that results
in improving corporate reputation that makes employee retention possible to improve the
financial performance (Yusuf, & bin Bahari, 2015). Corporate`s investment in social
activities will build reputation which will lead to competitive advantage. These corporates
favour the suppliers who are responsible for policies and it reflects how their customers see
them. Through the reduction of water, emissions, and use of resource, the company can help
to save the environment. In order to become responsible, a sustainable company makes it
easier to recruit new and fresh talent so that it will help in maintaining greater accountability
and customer loyalty (Yusuf, & bin Bahari, 2015). Here are some important illustrations from
the contemporary world that signifies hoe efficiently some companies have executed the CSR
policy. For example- P&G does not prefer child as their labour in any of their global
operations or facilities. They also try to uphold those businesses, suppliers, contractors who
follow the same standards. Moreover, they do not operate with those businesses, which
employ child, prison, bonded labour or any coercion. Furthermore, activities, which P&G
commits to serve, are the safe and healthy production and operation around the world. The
main aim is to protect the lives and health of employees, community, and wildlife
surrounding its operations. Safe operations are long-standing part of company`s culture
reflecting its ability to serve its customers, suppliers (which are the part of the society from
which they belong too).
While analysing the sustainable reports of an FMCG company, PepsiCo executes its CSR
policies its sustainability policies successfully such as quality and food safety programs,
healthcare reform, sustainable packaging policy, and responsible marketing. Under the food
safety and quality, it is seen that PepsiCo is dedicated in producing the highest quality, safe