Corporate Social Responsibility: Impact on Society, Environment and Economy

This report discusses the importance of corporate social responsibility (CSR) in creating a positive impact on society, environment and economy. It covers various aspects of CSR, including workplace, marketplace, supply chain, community and public policy. The report also highlights the benefits of CSR for businesses, such as building a positive image and increasing sales. Examples of successful CSR practices by companies like Johnson and Johnson are also provided.

Corporate Social
Responsibility

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Corporate social responsibility....................................................................................................3
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Corporate social responsibility refers to a self regulation business mode which helps an
organisation to be accountable for society including to stakeholder as well as public (Adnan, Hay
and van Staden, 2018). By adopting CSR, business can create impact on all aspect of society
including environmental, social and economic. Engagement of business in CSR helps them to
enhance environment and society in place of contributing negatively. This report includes
discussion of corporate social responsibility which does not encompasses with what company is
doing worth their profit instead how they are making it. This term goes beyond social,
environmental and economic impact along with their relationship.
TASK
Corporate social responsibility
Corporate social responsibility refers to a business regulation which is focusing on being
accountable. There is no specific ways of corporate social responsibility practice. There are
various organisations which are taking initiatives to strive corporate social responsibility in order
to positively contribute in public, public, environment and economy (Barauskaite and
Streimikiene, 2021). With increasing social consciousness, employees as well as consumer is are
placed first in working for as well as spending for with business which increase demand of CSR.
Organisation which are adopting CSR are getting benefits in market in different ways. It is
important for business to know about public is thinking about their organisation as this factors
helps them to get success in market. Building positive image of company helps business to be
socially conscious. With increasing use of CSR by organisation, it is important for a company to
have social conscious image. It is consider by employees, stakeholder and consumer while
choosing a company.
It includes ways in which business are making efforts for improving society in some context.
These efforts can range from donation of money to adopting environment friendly policy at
workplace (Hou, 2019). CSR is some additional efforts that a company made for improving local
as well as global community. General public get various positive impact of company CSR
efforts. Purpose of this is to giving back to society by taking part in philanthropic cause which
create positive social values in an organisation. Business is adopting CSR in order to

differentiate their brand from others and also to create positive image of company in minds of
their customers. Some of example of Corporate social responsibility of business are as follows:
Johnson and Johnson is an pharma company which is focusing on reduction of impact of
their operation on the earth for three decades (16 Brands Doing Corporate Social Responsibility
Successfully, 2021). They are making efforts which range from leveraging power of wind to
providing safe water to people of community in different parts of world. This organisation is
purchasing privately owned energy supplier in Texas which allow them to reduce pollution of
company.
CSR is not only focusses on what companies are doing with their profit but also how they
are earning these profit. For instance, some companies are offering products which create
negative impact on health of people but they are investing on community development. This
practices are against CSR as it is primary responsibility of an organisation to provide products
which does not create negative impact on business. For instance, Volkswagen is an organisation
which are providing their products and service in automotive industry. In order to protect their
marketing share, business is creating clean diesel in marketplace which helps to increase their
competitiveness in market. In helps them to complete with other marketing players like Honda,
Toyota Prius in US. Volkswagen has used an software in their cars which can detect emission
test and control environmental pollution at time when emission test is conduct that helps them to
pass test (What Is Corporate Social Responsibility?, 2021). Later on after investigation, it is
identified that Volkswagen is emit more dangerous and poisonous nitrogen oxide in air which
cause pollution. But at same time, company is also investing in community development through
CSR. This situation is against CSR as they are causing harm to environment to extent which is
against environment related laws.
Economic factors: Economic factors consist those which create impact on cost of operating
business in specific economy. Economic factors comprise interest rate, growth in economy,
wages rate, inflation rate (Matten, and Moon, 2020). These factors can provide opportunity and
threat for a business. In order to overcome of impact of these factors, organisation can adopt
corporate social responsibility. For completing corporate social responsibility, enterprise are
creating various employment opportunity in a community where they are operating. This helps
them to reduce unemployment rate in economy and also create positive image for their
organisation. Business should also provide fair wages to their customers which increase their

satisfaction and also company to fulfil their duties towards their employees. A company is also
fulfil their responsibility by paying tax as government is reinvested those amount in community
development.
Social Factors: Social factors refers to those which are related to cultural aspect and
demographic factors like income, status, gender and many more. These factors are important to
consider for business as it create impact on their operation (Nave and Ferreira, 2019). Adoption
of CSR practices helps to control impact of these factors. Business are fulfilling their social
responsibility through social and community development. In this, business is offering
construction of road for transportation, providing electricity facility, opening hospital and
schools. It provide support to business from local people. It also helps them to get more profit as
well as provide opportunity to expand their market share.
Environment factors: Environment factors are related to climate condition, weather, pollution
and many more. It create impact on survival of an organisation in market and to overcome of
impact of these factors, business needs to engage in corporate social responsibility (Zhang, Oo,
and Lim, 2019). An organisation can contribute to corporate social responsibility related to
environment by adopting process which does not cause harm to environment. These business can
also contribute to environment by planting trees as it helps to enhance natures. They should
invest in research and development activities which helps to control pollution in environment.
All these are important to create positive image of a company among customers.
Workplace: Workplace is somewhere employees are working in order to attain business goals.
In this actual operation of company is taking place (Wang and Sarkis, 2017). It is essential for a
business to build good relation with workers as it them them to fulfil their corporate social
responsibility. At workplace employees are contributing their efforts in order to attain business
goals. It is responsibility of an organisation to provide their worker clean and safe condition of
working. It is also important for enterprise to provide fair wages to their employees which helps
them to build good image in minds of employees.
Market place: Marketplace is one of important place where business is providing their products
and service to their customers. Business needs to adopt corporate social responsibility related to
market place in which they needs to fair practices while competing with other marketing players.
They should also adopt ethical practices for attracting customers. They should not provide false

information related to their products to customers as it create negative impact of company in
minds of customers. These products should create negative impact on health of people.
Supply chain: Supply chain is a network of business and its supplier which helps to produce and
distribute products of company to final customers (Ye and et.al., 2020). It consist various steps
for providing products and service to customers. It is social responsibility of business to provide
timely payment to their supply chain which helps them to build trust among business and supply
chain.
Community: Community includes people who has some specific common characteristics and
living in common place. It includes needs which helps them to manage impact of community on
business. Company can fulfil their responsibility towards community by ensuring community
development and also develop products as per their requirement.
Public policy: Public policy is related to system of law, regulatory measures, course of action,
funding priorities related to specific topic through government representatives. It is to be
followed by an organisation for developing good image in minds of their customers.
CONCLUSION
From above mentioned project report, it can be concluded that Corporate social responsibility is
an responsibility of business towards society and community. It provide various benefits to
business and as it create positive image of company in minds of consumer, provide support to
business from local people. It helps them to differentiate their products from those of competitors
and allow them to increase sales of their product. Business needs to fulfil their corporate social
responsibility effectively as investing profit for social development alone is not corporate social
responsibility but at same time, how these business are making profit is also important.

REFERENCES
Books and Journals
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.
Barauskaite, G. and Streimikiene, D., 2021. Corporate social responsibility and financial
performance of companies: The puzzle of concepts, definitions and assessment
methods. Corporate Social Responsibility and Environmental Management, 28(1),
pp.278-287.
Hou, T.C.T., 2019. The relationship between corporate social responsibility and sustainable
financial performance: Firm‐level evidence from Taiwan. Corporate Social
Responsibility and Environmental Management, 26(1), pp.19-28.
Matten, D. and Moon, J., 2020. Reflections on the 2018 decade award: The meaning and
dynamics of corporate social responsibility. Academy of management Review, 45(1),
pp.7-28.
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.
Wang, Z. and Sarkis, J., 2017. Corporate social responsibility governance, outcomes, and
financial performance. Journal of cleaner production, 162, pp.1607-1616.
Ye, N., Kueh, T.B., Hou, L., Liu, Y. and Yu, H., 2020. A bibliometric analysis of corporate
social responsibility in sustainable development. Journal of Cleaner Production, 272,
p.122679.
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.
(Adnan, S.M., Hay, D. and van Staden, C.J., 2018).(Barauskaite, and Streimikiene, 2021).
(Hou, T.C.T., 2019). (Matten, and Moon, 2020).(Nave, and Ferreira, 2019)(Wang, and
Sarkis, 2017). (Ye, and et.al., 2020).(Zhang, Oo, and Lim, 2019).
Online
What Is Corporate Social Responsibility?, 2021. [Online]. Available through:
<https://www.businessnewsdaily.com/4679-corporate-social-responsibility.html>
16 Brands Doing Corporate Social Responsibility Successfully, 2021. [Online]. Available
through: <https://digitalmarketinginstitute.com/blog/corporate-16-brands-doing-corporate-social-
responsibility-successfully>