Corporate Social Responsibility: Impact on Business and Society

This report discusses the impact of corporate social responsibility on business and society. It covers economic, social, and environmental factors, workplace, market place, supply chain, community, and public policy. It also highlights the importance of CSR in creating a positive image of the brand and increasing customer loyalty.

Corporate Social
Responsibility

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Corporate social responsibility ...................................................................................................1
Economic.....................................................................................................................................2
Social............................................................................................................................................3
Environment Impact.....................................................................................................................3
Workplace....................................................................................................................................3
Market Place................................................................................................................................4
Supply Chain................................................................................................................................4
Community..................................................................................................................................4
Public Policy................................................................................................................................4
CONCLUSION ...............................................................................................................................4
REFERENCES ...............................................................................................................................6

INTRODUCTION
Corporate social responsibility refers to a self regulation of an business which helps
organisation to be accountable for itself, stakeholder as well as public (Han, Yu and Kim, 2019).
This is important for business as it create positive image in minds of customers and also helps
business to gain attention of government which helps to ensure long term survival of business in
that country. This project report includes discussion corporate social responsibility of business as
CSR is not limited with investment of profit of business on society but they ways of making
these profit. It also includes discussion of management of impact of social, economic and
environment to company.
MAIN BODY
Corporate social responsibility
Corporate social responsibility refers to a self regulation of business which helps
organisation to be accountable for itself, stakeholder as well as public. Participation of an
enterprise in corporate social responsibility helps them in creating positive impact on society,
economy and environment which is good for their image (Harjoto and Laksmana, 2018).
Engagement of business in CSR reflect that enterprise is operating in a way which helps to
enhance environment and society rather than creating negative impact on them. It is one broad
concept which has may form based on organisation or industry. CSR, Volunteering efforts and
philanthropy helps business to provide benefits to society which helps to boost imager of their
brand. CSR is important for both company as well as community. It also create strong
relationship between employees and organisation. This CSR by providing fair wages, and good
working environment to employees boost morale and make employees and employers to feel
connected. For instance, Starbucks is one of organisation ethic is fulfilling corporate social
responsibility and also committed towards sustainability and community welfare. This
organisation is involved in CSR since they are established. company is engaged in CSR by using
ethically sourced coffee, formulating global network of different farmers, contributing hours in
community service, introducing green building with their stores, development of college
programs for their employee, paying tax to government and may more. This improve brand
image of company in minds of their customers and enhancing value of their brand. Engagement
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of company in CSR helps to increase engagement of employees in business, increase numbers of
loyal customers for business and also create positive attention of public.
Engagement of company in Corporate social responsibility helps to improve brand image
of products and service of company (Kim, 2019). There is also increase in awareness in people
related to environment, Corporate social responsibility and other factors. Due to this customers
like to buy products of company which are fulfilling their corporate social responsibility and
creating positive impact on social and environment. This provide opportunity to business to earn
more profit for business. But corporate social responsibility is not encompasses about how
organisation is using their profit but also how they are making profit for their business. Some
organisation are investing their profit on corporate social responsibility honestly but they are
making these profit by selling products which is harmful for health of people. For instance,
Volkswagen is one of organisation which is conducting their operation in automotive industry. In
order to save their low market share, company has created clean diesel in market of Us in order
to compete with other environment friendly cars like Toyota Prius and Honda. In this,
Volkswagen has equipped with a software which detect emission test and control pollution when
this emission test is taking place to helps cards to pass. But after investigation, it is revealed that
company emit more poisonous nitrogen oxide in environment than allowed by government and
laws. In this case company is fulfilling their corporate social responsibility by investing their
profit for community development but at same time. They are harming to environment and also
work again laws.
Economic
Economic factors are those which create impact on coat of organisation by conducting
operation in particular economy. These factor include interest rate, growth in economy, inflation
rate, wages rate and many more (Lund-Thomsen, 2020). Thee factors create both positive and
negative impact on organisation. Business control impact of these factors by engaging in
corporate social responsibility. In this, company generate employment opportunity in economy,
providing fair wages to their employees. This create good image in kinds of employees and also
in society. With this more people are attracting towards organisation as company is taking care
of their employees and fulfilling their responsibility towards their employees. Company can also
fulfilling their responsibility by paying taxes to government which is reinvested by government
towards development and welfare of people living in that country.
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Social
Social factors are those factors which is related to cultural aspect, demographic factors
like age, gender, income status and many more. These factors create various impact on
organisation and it is important for business to consider these factors while operating in a
country (Oh, Chang and Jung, 2019). Company can control impact of these factors on business
as engaging in corporate social responsibility. An organisation can fulfilling their corporate
social responsibility by providing social development and welfare which can be done by
providing electricity facility in villages, constructing roads for transportation, opening schools
and hospitals. This helps organisation to gain support form local people and creating good image
in minds of target customers. This helps business to get more profit and expand their market
share as customers are likely to by products for organisation which is fulfilling their corporate
social responsibility and contribute in social development.
Environment Impact
Environmental factors refers to those factors which include pollution,climate condition, weather
and may more. These factors affect operation of business in market and can also impact on
survival of business (Orazalin, 2020). In order overcome of impact of these factors in business,
it is important to engage in corporate social responsibility. Business can contribute in corporate
social responsibility related to environment by development products which does not harm to
environment. They can also plant trees which is good for nature and can participate in campaign
related to environment protection. Business can also invest on research and development which
helps them to develop new technologies in order to control pollution level in a country. All these
contributing in creating good image of organisation in minds of their customers.
Workplace
Workplace is a place where employees working for an organisation. It is a place where actual
operation of business take place. It is important for an enterprise to build good relation with
employees working for company at workplace. In this company can fulfilling their corporate
social responsibility by creating good working condition for their employees and providing
necessary equipment for safety of employees. Business can also create good working condition
for employee and can provide sufficient wages or salary for their work. These helps to build
good image of organisation in minds of their customers. For instance, business is doing good
salary and working environment, an individual is likely to work in that organisation.
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Market Place
Market place is another factors which is important for company as it is the place where business
sell their products and service (Pekovic and Vogt, 2021). There are various corporate social
responsibility of business towards market place as business provide good products and service at
reasonable price to their customer. They should adopt ethical strategies in order to attract
customers towards their products and service. They should not include in false advertising as it
can ruin their market image. It is also important for business to provide products which is good
for health of their customers as it helps to create positive image in minds of their customers.
Supply Chain
Supply chain refers to a network between business and their supplier in order to produce
as well as distribute products and service to final consumer. Supply chain also includes various
step to be taken by organisation to provide their products and service it their customers. It is
important for business to provide time to time payment to their supply chain as it helps to build
trust between them which is important for business and its image.
Community
Community refers to a people who has some specific characteristics in same and living in
common place. Business needs to fulfil their corporate social responsibility in order to manage
impact created by community on business (Tsai and Wu, 2021). Business can provide them
social welfare and development to these community which is good for image of business.
Public Policy
Public policy refers to system of law, course of action, regulatory measures, funding priorities
related to specific topic promulgated through government representatives. Public policy is to be
followed by business which helps them in creating good image of customers in minds of
customers.
CONCLUSION
From above mentioned protect report, it can be concluded that corporate social responsibility is
responsibility to business towards society, employees, economy and environment. Corporate
social responsibility helps business in creating good image in minds of their customers and
increase numbers of loyal customers. Engagement of employees and positive image of brand of
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company. There are various factors which create impact on CSR includes social, economic and
environment.
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REFERENCES
Books and Journals
Han, H., Yu, J. and Kim, W., 2019. Environmental corporate social responsibility and the
strategy to boost the airline’s image and customer loyalty intentions. Journal of Travel
& Tourism Marketing, 36(3), pp.371-383.
Harjoto, M. and Laksmana, I., 2018. The impact of corporate social responsibility on risk taking
and firm value. Journal of Business Ethics, 151(2), pp.353-373.
Kim, S., 2019. The process model of corporate social responsibility (CSR) communication: CSR
communication and its relationship with consumers’ CSR knowledge, trust, and
corporate reputation perception. Journal of business ethics, 154(4), pp.1143-1159.
Lund-Thomsen, P., 2020. Corporate social responsibility: A supplier-centered perspective.
Environment and Planning A: Economy and Space, 52(8), pp.1700-1709.
Oh, W.Y., Chang, Y.K. and Jung, R., 2019. Board characteristics and corporate social
responsibility: Does family involvement in management matter?. Journal of Business
Research, 103, pp.23-33.
Orazalin, N., 2020. Do board sustainability committees contribute to corporate environmental
and social performance? The mediating role of corporate social responsibility strategy.
Business Strategy and the Environment, 29(1), pp.140-153.
Pekovic, S. and Vogt, S., 2021. The fit between corporate social responsibility and corporate
governance: the impact on a firm’s financial performance. Review of Managerial
Science, 15(4), pp.1095-1125.
Tsai, H.J. and Wu, Y., 2021. Changes in Corporate Social Responsibility and Stock
Performance. Journal of Business Ethics, pp.1-21.
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