CORPORATE SOCIAL RESPONSIBILITY

Running head: CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
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Author Note

CORPORATE SOCIAL RESPONSIBILITY1
Background
Corporate social responsibility has become a major issue for all the businesses in the
present day. Moreover corporate social responsibility has also become an important issues in the
present generation due to the increasing awareness of the people about the impact of that an
organization has over the society and the community at large (Albuquerque, Koskinen and Zhang
2019). Moreover when customers feel that the organization in engaging in activities of Corporate
social responsibility, their trust in the company develops and the customers also take pride in
being a part of the company. Customers are also ready to pay higher prices for purchasing the
products and services of a company that engages in CSR activities and when such CSR activity
includes funding for some major social causes (Schrempf-Stirling, Palazzo and Phillips 2016).
On the other hand, the corporate social responsibility activities are important for organizations
because it can help in improving the company’s image and also help in developing the brand.
Moreover when organization engages in the CSR activities, their employee morale increases and
as a result their overall productivity also increase. Moreover the companies are able to create a
more attractive image in front of the customers and also other stakeholders through engaging in
CSR activities. The company long term success is ensured through its CSR activities because it
can help them in attracting and retaining the customers for long (Liang and Renneboog 2017).
Therefore CSR activities help in building the loyalty of the customers. Moreover, once a
company is able to create a good image and relationship with the public, they can expect an
increase in footfalls in the company. Companies can also enjoy a competitive advantage over its
competitors with the help of its CSR activities. Therefore due to such importance of corporate
social responsibility from the perspectives of the customers and the organization, there is major
scope for the research question.