Corporate Social Responsibility and its Benefits: An Analysis of the International Framework in the UK

This essay analyzes the benefits of Corporate Social Responsibility (CSR) and its international framework in the UK. It covers the importance of CSR, its benefits, the legal provisions, and the relationship between business ethics and CSR.

Law and Ethics ( Pass
Criteria)

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
CONCLUSION ...............................................................................................................................8

INTRODUCTION
Corporate Social Responsibility refers to the practice and policies that are adopted by the
corporations that have a positive impact on the world. It is the concept where companies indulge
through social and environmental concerns for operations of business. Its purpose is to serve
corporations in order to achieve the social objectives for growth and development of the
organisation. It also intends to increase or maximize its profits by adhering to the corporate social
responsibility for the organisation (Alhouti, and D’Souza, 2018). The main benefit of CSR for
corporations is that it helps in increasing the sales of the company by effectively saving its costs
with better performance and also gaining the loyalty of its customers. The main objective of CSR
is to reduce the externalities from the environment, facilitating positive interaction among the
employees and contributing towards the society by doing charity. This essay will cover the
various aspects of Corporate Social Responsibility in relation to international framework of
United Kingdom.
TASK
A business framework is a set for the organisation to enhance and improve its internal and
external system for development of the corporation. The efforts that company make in improving
the social, environmental aspect of the corporation for its overall development and proving to be
safe and efficient for the society as well (Isaksson, and Mitra, 2019). The main purpose of CSR is
to contribute towards the society by serving the community in such a way that it adds value to the
society and leaves a positive impact. Corporations are rapidly turning towards the practice of
CSR to build a productive system for the organisation and to enhance the brand value for growth
of the company. When the operational framework of the company adheres to the ethical and
sustainable procedure for dealing with social and environmental changes in order to have a
positive and influential impact (Beck, Frost, and Jones, 2018). The valuable contribution towards
the community or society by imparting positive attribute towards the corporation helps in
considering the social and environmental changes for benefit of the organisation.
Corporate Social Responsibility helps in demonstrating the social responsibility for the
operational work of the organisation. In today's time, consumers are becoming aware of the

quality and quantity of the delivery of product, which is spreading awareness adhering to the
social and ethical responsibility of the corporation. A good business imparts ethical and social
values in accordance to the need of customers and also for maximization of profit of organisation
(Kelley, Hemphill, and Thams, 2018). It will help the corporation to attract customers as they
work towards social and environmental changes adhering to the welfare of society as well as
corporation. The operational sustainability of business is dependent on effective practice of
Corporate social responsibility for the organisation.
The inculcation of the practice of CSR enables in establishing a powerful impact for smooth
working of organisation. There are various benefits of adopting the practice of Corporate Social
Responsibility for development of organisation which are Improved public image as the name
and value of the brand is very important for attracting customers. If the organisation is committed
towards helping others, then it builds a good image for the company, appearing to be more
favourable for its consumers (Gennari, and Salvioni, 2019). Increased brand awareness and
recognition helps in adopting ethical practices for recognition of the organisation which further
helps in increasing awareness about the brand image of the company. Cost savings is very
effective benefit as costs can be reduced with the practice of less packaging which even helps in
decreasing the cost of production. Advantage over the competitors serves as a benefit for the
corporations that are advanced in considering the social and environmental factor for
development of the organisation and enables the corporations in competing with other business
organisations. Increased customer engagement helps the corporation to attract customers by
using sustainable system and promoting it through channels of social media which enables the
customers to actively engage with the operations of corporation (Pérez, 2019). Greater
employee engagement is also very beneficial for adhering the practice of CSR as corporations
that are involved in improving the society through social, environmental factors that enables
employees to work with the organisation as it works towards a good cause with improved public
image.
These are the benefits of adopting the practice of Corporate Social Responsibility as it enables
the employees to work productively with positive environment. It also enables the customers to
actively engage with the organisation by buying and purchasing its products and services.
The government of UK determines Corporate Social Responsibility as the responsibility
of an organisation that imparts impactful decisions on society and environment by exceeding its

legal obligations with its ethical and transparent behaviour (Hou, 2019). Section 135 of
Companies Act, 2013 has made it compulsary for the companies who have a certain net worth as
turnover of Rs 500 crore or more, Rs 1000 crore or more or Rs 5 crore or more to use their profit
during the preceding financial years to spend an average net profit of two percent on CSR for
three years. This will help in increasing the reputation of the company with improvisation in its
brand image between the customers and society (Shabbir, and Wisdom, 2020). The practice of
CSR is a mandatory provision that is to be fulfiled by the companies under Companies
(Corporate Social Responsibility) Rules, 2014 and Schedule VII of Section 13 of Companies
Act, 2013. It is mandatory to spend almost 2% of an average net profit on Corporate Social
Responsibility over the past three years, otherwise the non-compliance of which charge a penalty
on corporation that does not comply to practice of CSR.
This framework of CSR is adopted by the Companies Act, 2013 to indulge more and more in the
activities of profitmaking for growth and development of the organisation. It directs the capable
corporations to contribute a specified or particular amount for serving towards social and
environmental cause in order to promote equality in gender, health care with education and even
removing hunger and poverty from underprivileged people (Sun, Yoo, Park, and Hayati, .et.al
2019). Nowadays, customers are more inclined towards businesses that indulge more in social,
environmental and ethical practices as it helps in building stronger customer relationships
thereby strengthening the base of CSR. Companies are rather analysed on their contribution
towards social and environmental causes than just the price and quality of the product. This has
created a competition in the market leading to involve more and more corporations in the practice
of CSR with overall responsibility of the organisation towards the society.
The international framework of CSR deals with production, procurement and sales of
the corporations by structuring the business globally, therby influencing the operational
framework of business on international front. Corporate Social Responsibility is a very valuable
practice for international marketing strategy as it helps in improving the brand image of
corporations on international front with opportunities of expansion of business on global level
(Khan, Lockhart, and Bathurst, 2020). The ethics of international business includes the ethical
standards between the parties such as partners and customers in order to the business hand in
hand considering the international framework of conducting a business. The effective practice of
working towards social and environmental cause with ensuring of human rights helps in

imparting valuable practices for welfare of the organisation (Bhattacharyya, 2019). Some of the
key issues of CSR in international business are management of the encvironment, engagement of
the stakeholder, responsible sourcing, eco-efficiency, working conditions and standards of
labours, social equity, human rights, realtions of the community, balance in gender, anti-
corruption measures and good governance.
Relationship between Business Ethics and CSR
Corporations need to adopt effective ethical practices in order to strengthen the
operational framework of the organisation (Mazboudi, Sidani, and Al Ariss,2020). The
employees must imbibe a strong code of ethics in order to deal with the challenges for ethical
conduct in the organisation. There must be highest ethical policy for building strong relationships
with other corporations which may help the organisation to progress and flourish in the future.
Therefore, ethics policy helps in ensuring productive functioning of the organisation with ethical
conduct of employees while performing the activities of organisations. The company is obliged
to perform the responsibility of CSR towards the society as it is their ethical and social duty. The
corporations not only offers an important form of liability limitation but also regulate the
personal acts and conduct of business. It enables in imparting effective performance of the
employees in order to maintain the standard of the organisation. These standards set by the
organisation help in removing the hindrances that occur while imparting duties for smooth
functioning of the organisation (Khojastehpour, and Shams, 2020). The ethical and integrity
policies help in providing a strong structural base for the organisation with the support of
authoritative power of managers or leaders. The employees must execute ethical practices in
relation to decision making for maintaining the standard of organisation. The Manager of a
corporation plays an important role in establishing the ethical conduct of a company which may
prove to be very beneficial for development of the organisation. The conduct of managers
dictated the performance of employees as if the manager with manage the emloyees in an
organised manner then the employees will be organised (Pham, and Tran, 2020). If the manager
will mange the employees in a disorganised manner then the employees will work in a
disorganised way which may affect the functioning of the organisation.
Therefore, there are various difficulties in implementing CSR as public policy and
business strategy are the main elements of Corporate Social Responsibility. It is very important
for the corporations to be aware of the needs, demands and interests of the public in order to

surivive in the society. As the society will only buy the products and services of company so it is
very important to abide by the needs and demand of the public. The responsibility of the
comapny can vary from region to region and industry to industry as comopanies operate in
various or different climatic and geographical conditions adhering to the environmental cause.
The enforcement of social responsibility bears the challenge of being implemented on the
operational functioning of the organisation. CSR in accordance with social and environmental
responsibility are very essebtiall aspects for functioning of a company (Ruwanti, Chandrarin, and
Assih, 2018). It is possible to adopt to the changes of society with changing needs and demands
of the public for welfare and development of the society. Despite the benefit of Corporate Social
Responsibility, there are some business owners who do not believe in the practice of social
responsibility for the corporation as it involves abiding by the social and environmental changes
for sacred causes (Rendtorff, 2019). This procedure of adoption requires removing of elements
from the company which are not social and environmental friendly, which poses a burden on
organisations to completely change their structural framework, which they are not ready to adopt
due to lack in the awareness of social, environmental and ethical responsibility.

CONCLUSION
From the above essay it is concluded that, Corporate Social Responsibility of the
organisation in accordance to the social and environmental changes with changing needs and
demand of the public. Its main purpose is to maximize the profit of organisation by adopting the
efficient practice of CSR for growth and development of the company. There are various
benefits of inculcating the practice of CSR which includes Improved public image, Increased
brand awareness and recognition, Cost savings, Advantage over competitors and Increased
customer engagement. The provision of CSR is mentioned in Section 135 of Companies Act,
2013 which has made it mandatory for capable organisations to spend 2% of their average profit
on CSR for past three years. The international framework of CSR helps in dealing with the
practice of social responsibility of an organisation for expansion of business on global front. It
will further help in adopting to the changing needs and demands of the public on international
level which may flourish and grow the business by giving it recognition on international level by
adhering to the social and environmental needs of the society.

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