Corporate Social Responsibility and Sustainable Business Practices

This document discusses the importance of corporate social responsibility and sustainable business practices for businesses. It explains how these practices can benefit both the society and the organization. The document also highlights various ways in which companies can fulfill their social and environmental responsibilities. It concludes that for sustainable business practice, companies need to focus on both earning profits and fulfilling their CSR activities.

Busienss International relations
[Document subtitle]
LENOVO
[Email address]
Abstract
[Draw your reader in with an engaging abstract. It is typically a short summary of the
document. When you’re ready to add your content, just click here and start typing.]

Introduction
With the ramified economic changes, each and every business organization is required to
align the interest of their business with the stakeholder’s development. Business organization
operates their business with the objective to earn profit but at the same time they also hamper the
society and environment while doing the same. Therefore, it is expected from them to pay back
to society what this organization takes while operating their business in society. However,
corporate social responsibilities and sustainability reporting are some of the aspects of ethically
aligning the interest of the stakeholders with the organization development. There is too much
competition in the market and it is very difficult for the industries to survive. They want to give
every effort to make their goodwill in the market and stand at the position so that people trust
their company and invest in it. It is mandatory for the company to make profit. But except this
the company has to fulfill many other responsibilities towards the society and the environment.
As the company uses resources from the society, it has to pay back to the society by fulfilling the
responsibility towards the society. As the society is the main source of resources. Also it
provides ethical values among the employees that help the company to grow and expand as it
increases loyalty and pride among them.
It is surely a fact that business should get on with what it does best: making profits.
Therefore, it is not primarily the role of business to ensure that society’s concerns are addressed.
But at the same time, it should focus on aligning the interest of the stakeholders with the
organization development. The society concern and economic development should be the second
object of company. It should not be left all alone. If managers pay backs to society what it has
taken to satisfy its primary objective then it would not only strengthen the brand image but also
increase the overall sustainability of organization in long run (Foscht, Lin, and Eisingerich,
2018).The main issue area is that environment which should be protected by the company by
implementing its CSR and sustainable business practices. The company must expend their
interest in favor of corporate social responsibility to reduce the negative impact of its business on
environment. As the profit earning is not the only thing that the company wants to achieve as
there are many other responsibilities of the company towards the environment to fulfill. It is also

called as sustainable business development as it helps the company to reduce the flaws against
the society and help them to grow. If the company is not taking interest towards the environment
protection then the environment will also start paying back of their flaws (Foscht, Lin, and
Eisingerich, 2018). Various laws are framed and came into actions to protect the society that
bound the company to fulfill their responsibilities towards them. It became mandatory for the
company to contribute its 2% of average 3 years profits in favor of corporate social
responsibility. As the company's main focus is earning profits, it will help the business to
become successful by applying corporate social responsibility rules and regulations in the
business framework that leads to social goods and help the company to frame a good image in
the society. Various public sector organizations believe that corporate social responsibility is not
accepted as a law but as a principles or values in the business framework (Petrie, 2016).
Aligning the interest of the stakeholders and society with the organizational
development
Fulfilling the Corporate social responsibility helps the company in many ways like, for the Non-
governmental Organizations, it makes company anthropogenic that helps the company to get the
certification of ecofriendly. The government seems it like a voluntary revolution of the company
if they take interest in the corporate social responsibility and that helps the company to get
advantages from the government rules and regulations. It seems the voluntary involvement of the
company towards the government corporate social responsibility policy and also contributes
towards the environment and society (Petrie, 2016). With the achievement of business Goals
Company may also focus on the social responsibility, with this the customers get attractive
towards the society. The companies that make efforts towards fulfilling the social responsibility
gets more customer attachment as customer finds it trustworthy and responsible towards the
products and services they provided to them. It makes the mindset for the consumers and the
employees that if the company takes initiative for fulfilling the social responsibility then also it
focuses on the quality of product, better services and also providing better environment for
working and secure employment as the company concerned about the social goods (Petrie,
2016).

By contributing in the social and environment responsibilities, Company reduces its competition
with other companies as it directly affects the mindset of the consumer and shareholders that
leads to huge investment and also huge profits. It frames the good social image in front of the
investors that helps the company to reduce business competition (Mardiyyah, 2014). It leads to
the donation by the company in the form of cash or goods or services that leads to the charity for
the society and help in many ways to the people. Company may directly donate to the Non-
governmental Organizations or social development bodies or through a corporate foundation.
Company organized many volunteer activities for the people who need to be developed
and want supports. Company appoints employees as volunteer to organize these activities that
helps in many ways like paying extra to the employees that make them more dedicated towards
their work and also helps the needy from these activities. Companies make products by taking
customer interest in reference like good quality of product; good services are rendered to the
customer that satisfies the needs of the consumer. They ethically produce goods by taking
customer interest in the mind. This shows the social responsible practices of the business (Petrie,
2016). Cause marketing strategies are used by the company. It helps the company in two ways:
promote their product in the society and also distribute it as a donation the society that helps in
charity formation in the society by the company (Park, and Park, 2015). Company funded in the
charitable activities that leads to the support for the Non-governmental Organizations to provide
services to the peoples and also making company's social image better. Company funded such
campaigns that spread awareness of the rights to the people so that they get Justice against frauds
(Mardiyyah, 2014).
Company funded such campaigns that are based on behavior change.By all this social initiative
company not only participate in the corporate social responsibility and contribute towards the
social responsibilities but also make profits in the form of promotions, selling products in cause
marketing that leads to both social interest and profit motive. Various auditing and reporting
standards are set to certify whether the management, working process, working place, resources,
wastage are not affected to the society and the environment. It helps to gather the information
regarding the changes that needs to be done in the areas that leads to negativity for the society so
that better decisions are to be taken regarding this (Siberian, Karamani, Avrianto, and Bangsa,
2018). CSRs rules, regulations and reporting standards and the report provided by the company

helps the customer to verify about the goods and services provided by the company. The report
provides verification about the product whether it is socially sustainable or not. As the awareness
of Corporate social responsibility increases in the society which leads customer first verify the
product and the company then only expand on it (Sihem, 2015). Due to this, some of the
companies are providing their own verification standards for the customer so that it is easy for
them to identify.
Environmental focuses
Company focuses on waste management, renewable energy, water supply management,
adapting the reusable material, reduce the use of paper that leads to reduction in the wastage and
protect the environment (Kolk, 2016). Company prefers community involvement in the business
as appointing local workers for the labor, providing volunteers for the campaigns, sponsoring the
social beneficial events, trade Fair business practices. The company can do ethical marketing by
not manipulating the product or doing false advertising. The company can promote the product
in such a way that affects directly to the customer’s good and frame a good image of the
company (Zhou, Luo, and Tang, 2018). The government itself regulates the training
programmers within the organization to spread awareness about corporate social responsibility
that helps the employees to take ethical and corrective decisions for an unclear situation. The
main aim of spreading awareness of corporate social responsibility is to reduce the malpractices,
fines, bad reputation, breaching of moral values and laws (Foscht, Lin, and Eisingerich, 2018).
This will lead to increment in the loyalty and pride of employees of a company. It helps the
company to make better brand recognition in the society that makes positive business reputation.
It increases the sales and customer loyalty towards the company that leads to better financial
performance. It helps the organization to grow effectively. Hence, the company needs not to be
focused only on making profits but also contribute towards the society and environment as it is
not only the responsibility but also mandatory to fulfill the needs of them. It not only compulsory
for the business to focus on society and environment protection but it also helps the business to
grow. Due to the factory that the company is involving in such things most of the things get
sorted and it makes good reputation of the company in the society. As the CSRs provisions and
implementation helps the society and environment but also helps the business to earn profits and
make more customers for their products by reducing competition by adopting ethical business

activities. Corporate social responsibility helps the company to frame goodwill by doing things
that are ethical in nature and supports customer interest (İyigün, 2015). It affects the
shareholders mind too in a form that if the company expand in these kinds of activities and
concern about the environment then definitely the company never cheat them. It makes the
company trustworthy and responsible in the eyes of customers, shareholders, society and also
environment protection foundations.
Conclusion
Corporate social responsibility not only helps the society to grow but also the inner
management of the company to grow with ethical values and also protect the environment as
well (Long, Tallontire, and Young, 2015). Therefore, the company starts focusing on the social
responsibilities with achievements of the goals. It helps the society to grow and environment to
be protected by making some efforts towards it. Now in the end, after assessing all the details, it
could be inferred that if company wants to sustain its business in long run then it will have to
focus on earning profit simultaneously focusing on the CSR activities and sustainable business
practices. Both things should go parallel for the sustainable business practice. If company only
focuses on the society concerns and benefits to society then it would increase the costing and
lower down the return on capital employed. It would lead to deficiency of the capital and
ultimately result to winding up of the company. On the other side, solely focuses on earning
profit will also keep the business separate and will negative impact the brand image of company.

References
.Sibarani, M., Karamani, D., Avrianto, A., and Bangsa, S. T. I. E. S. H. (2018). Company
Characteristic Analysis on Implementation of Green Business in Food and Beverage’s
Companies Listed in Indonesian Stock Exchange. Chinese Business Review, 17(5), 238-246.
Foscht, T., Lin, Y., and Eisingerich, A. B. (2018). Blinds up or down? The influence of
transparency, future orientation, and CSR on sustainable and responsible behavior. European
Journal of Marketing, 52(3/4), 476-498.
İyigün, N.Ö., (2015). What could entrepreneurship do for sustainable development? A corporate
social responsibility-based approach. Procedia-Social and Behavioral Sciences, 195, pp.1226-
1231.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1), 23-34.
Long, T. B., Tallontire, A., and Young, W. (2015). CSR, voluntary standards and sustainability.
In Sustainability (Vol. 199, No. 218, pp. 199-218). Australia: ROUTLEDGE in association with
GSE Research.
Mardiyyah, S. (2014). Program CSR PT. Unilever Indonesia Tbk “Komunitas Ibu Bercahaya”
dalam Mempertahankan Citra Perusahaan (Doctoral dissertation, UIN Sunan Gunung Djati
Bandung). 17(5), 23-26
Park, Y., and Park, Y. (2015). Corporate social responsibility for small global firms: Case study
of froosh. Management Review: An International Journal, 10(2), 4.
Petrie, K. (2016). Patagonia Inc.’s Sustainable Supply Chain Initiatives and Their Contribution to
Company Brand (Doctoral dissertation). 17(5), 23-26.
Sihem, B. (2015). Does governance system prevent unethical practices in sustainable citizens
firms?. International Journal, 3(6), 493-502.

Zhou, Z., Luo, B. N., and Tang, T. L. P. (2018). Corporate social responsibility excites
‘exponential’positive employee engagement: The Matthew effect in CSR and sustainable
policy. Corporate Social Responsibility and Environmental Management, 25(4), 339-354.