Role and Importance of CSR in Business Organizations

This essay evaluates the role and importance of CSR in present-day business organizations and analyzes how an organization's CSR policy may directly influence its corporate tax and investment decisions.

Essay- Corporate Social
Responsibility

Contents
INTRODUCTION...........................................................................................................................1
Critically evaluate the role and importance of CSR in present-day business organisations.......1
Analyse how an organisation’s CSR policy may directly influence its corporate tax and
investment decisions....................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Corporate social responsibility is also undertaken as CSR which is a self assessing model
that aids an entity to become socially responsible towards its people, stakeholders and for
themselves. Moreover, this also known as the one of the essential business activities that is
included into firm for maintaining sustainable development at competitive market area
(Advantage, 2020). This has been also assessed that activities of corporate social responsibility
not only concentrates upon social, economical and environmental aspects but also analyse the
requirements and desires of its potential stakeholder that are related with entity. The current
essay will be concentrating upon evaluating the role and importance of CSR in current business
organisation. Additionally, this will also incorporates explanation upon determination of
corporation taxes and investment decision related to corporate social responsibility policy.
Critically evaluate the role and importance of CSR in present-day business organisations
Corporate social responsibility is regarded as self regulating firm’s model that might
assists in developing organisation responsible towards its consumers as well as stakeholders that
drives towards development and growth of business. The key intent of executing CSR practices
is to obtain several optimistic outcomes at competitive market area that are affirmative in nature
instead of pessimistic (Chen, Dong and Lin, 2020). Moreover, this has been also evaluated that
activities of corporate social responsibility not only concentrates upon social, economical and
environmental aspects but also analyse the requirements and desires of its potential stakeholder
that are related with entity. Along with this, it has been stated that, this is an aspects which
required to be undertaken within consideration through administrative of entity as this majorly
impacts whole business operations in optimistic way. With assistance of being active socially,
various businesses may simply maximise its image at competitive market area. So, this is very
vital for entity to adapt corporate social responsibility business model that aids in accomplishing
societal intent of firms. In recent relation of business, this has been stated that firm should be
societal responsible that assists into maximising quality of life and living standards of society.
In addition to this, it is much essential for entity to have few societal intent with assistance
of which it may maximise their brand reputation as well as goodwill at competitive market area.
This has been also determined that this is crucial for few enterprises to provide some amount of
percentage from its whole profit for societal growth and welfare so that this will increase
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person’s living standards. Along with this, it is also identified that each individual customer
buying products from only those entities who are incorporated into a type of CSR practices.
Thus, this becomes much vital for firm that it should adapt such practices so that their brand
reputation will be maximised and also can able to grab the attention of various clients towards its
business Kowalczyk and Kucharska, 2020). This has been determined that CSR activity role into
modern organisation is quite evident as all company is needed for altering its work process based
upon the needs so that affirmative outcomes will be gained. These are ethical activities with
assistance of which firms’ drives towards organisational success at competitive market area.
Beside this, one of the vital roles of opting corporate social responsibility activity is to increase
brand name with their entity’s image at highly competitive market areas. This has been identified
that, it develops affirmative image of firm as in case company included into CSR practices this
will spread at marketplace that impact whole organisational profit. Such as The entity
incorporates some corporate social initiatives such as minimise carbon foot print as well as add
effective within world for creating it protected healthy and flourishing for it as well as upcoming
generations. It aids their firm’s team management for attaining its pre-determined objectives
ethically and socially.
Additionally, this has been determined that there are several challenges that might impact
entity for implementing corporate social responsibility activities into work areas. So, of the huge
challenge is an ineffective resource as well as finance that might obstacle business administrative
for executing CSR practices into work area. This impacts the whole functionality of business
pessimistically as well as also influences goodwill at competitive market areas. Moreover, this
has been also identified that consumers are very much pressurise its firms which they should
perform its activities ethically (Li, Patel and Ramani, 2020). Also, employees are the persons
who gain advantages with assistance of executing activities of corporate social responsibility as
the work environment are optimistic in nature. In addition to this, because of affirmative
atmosphere as well as contribution for growth of communities, this has been determined through
administrative team of entity that huge consumer will be attracted towards firms.
Apart from this, because of several problems as well as challenges, entities administrative
could not become competent for accomplishing its roles and accountabilities as administrative
team tackle various number of problem. This has been stated that whole regulatory bodies are
much concentrated upon these norms and policies. This is also important for government that
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they should formed such tactics so that firm may be aware regarding corporate social
responsibilities activities advantages into business operations. As this execution aids firm’s
administrative to maximise its goodwill, brand reputation and market share at competitive
market. Moreover, it has been determined that several problems and challenges that might
impact CSR activity implementation into work area. Thus, this become crucial for whole
management team to undertake whiles these components while performing its operations with
assistance of CSR activities.
Analyse how an organisation’s CSR policy may directly influence its corporate tax and
investment decisions.
This has been considered that tax is a vital source of revenues for government and
regulatory bodies of country. Each person along with business like SC Johnson has to pay taxes
so that it may maintain its sustainability at competitive market area. This has also been
undertaken that taxation is a kind of policy which is essential for each person to pay which aids
government to gain more revenue as this is helpful in infrastructure development, employment
opportunities and others which drive towards individuals’ living standards (Okazaki and et. al.,
2020). This has been also considered that the key intent of taxation policy is to gain revenue so
that whole country’s needs would be accomplished effectively. Moreover, this is also undertaken
that key principle of taxation policy is their economic impact, that incorporates that tax
framework might is developed appropriately so that overall issues will be solved. The other main
principle is equality all person needs to pay taxes based upon its pay scale. This is determined
that, it is a right of each person to pay its contribution within societal development (Scarpato and
et. al., 2020). Moreover, the less developed firm’s main target is tax evasions that outcomes act
as key obstacle into its whole performance.
Tax evasion is regarded as a kind of illegal act which is basically utilised in minimising
tax liability with assistance of few policies like inflating expenditures and underestimate
taxation. Through considering the example of business entity, this has been states that various
CSR activities are helpful in boosting their business functionality effectively. Moreover, its
senior authority perform meeting related to CSR policies and tactics. Also, there are few policies
that might be ineffective for business atmosphere so that has to be changed so the firm’s brand
reputation will be maximised at competitive market area (Wang, Gibson and Zander, 2020).
With assistance of executing CSR practices, this has been determined that few governments
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provide relaxation to entity into its whole amount. It will motivate them to execute appropriate
CSR practices and pay its taxes regularly. As these outcomes in brand image development and
also garb more number o consumers towards its business. In addition to this, firm who basically
adapt activities of corporate social responsibility to grab the attention of stakeholders towards its
business that might influences their whole investment in optimistic way (Yuan and et. al., 2020).
CONCLUSION
As per the above report, this has been concluded that corporate social responsibility plays
vital role in maintaining longer sustainability and goodwill at market area. Moreover, this is a
kind of policy with assistance of that several practices regarding environment and societal
concerns in order to perform the activities of business in effective and efficient way as well as
maintain image at marketplace. CSR role is to maximise goodwill, increase market share,
obtaining competitive edge and others. Beside this, it has also been determined that corporate
social responsibility impacts corporate taxation policies and investment in respect of decisions.
Along with this, this has been also summarised that taxation is other crucial aspects that assists
entity to gain various opportunities within market area.
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REFERENCES
Books and Journal
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies, p.65.
Chen, T., Dong, H. and Lin, C., 2020. Institutional shareholders and corporate social
responsibility. Journal of Financial Economics, 135(2), pp.483-504.
Kowalczyk, R. and Kucharska, W., 2020. Corporate social responsibility practices incomes and
outcomes: Stakeholders' pressure, culture, employee commitment, corporate reputation,
and brand performance. A Polish–German cross‐country study. Corporate Social
Responsibility and Environmental Management, 27(2), pp.595-615.
Li, Z.F., Patel, S. and Ramani, S., 2020. The role of mutual funds in corporate social
responsibility. Journal of Business Ethics, pp.1-23.
Okazaki, S. and et. al., 2020. Exploring digital corporate social responsibility communications on
Twitter. Journal of Business Research, 117, pp.675-682.
Scarpato, D. and et. al., 2020. Sustainable strategies and corporate social responsibility in the
Italian fisheries companies. Corporate Social Responsibility and Environmental
Management.
Wang, H., Gibson, C. and Zander, U., 2020. Editors’ Comments: Is Research on Corporate
Social Responsibility Undertheorized?.
Yuan, Y. and et. al., 2020. Business strategy and corporate social responsibility. Journal of
Business Ethics, 162(2), pp.359-377.
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