Importance of CSR in a Globalized Economy

This article discusses the importance of Corporate Social Responsibility (CSR) in a globalized economy. It highlights the significance of CSR in terms of sustainability, ethical standards, and profitability. The article also discusses the challenges faced by organizations in implementing CSR initiatives and the impact of CSR on society and the environment.

Running head: IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
Importance of CSR in a Globalized Economy
Name of the Student
Name of the University
Author Note

IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
The term corporate social responsibility indicates the effort for improving the society
in an effective manner. It gives the social effort by donating money to or developing the
environmental friendly regulations in the organization. As stated by McWilliams (2015),
corporate social responsibility is being considered as the voluntary commitment by the
business organizations, in which the economic, as well as social and environmental benefits,
are being included. By supporting this Kolk (2016) opined that the corporate social
responsibilities are being required in the case of legislative requirements as well as satisfying
the larger range of stakeholders. This can be said that in terms of organizational
sustainability, corporate social responsibility practices are very effective for developing the
strong image in the market. After the introduction of globalization in the business industry,
the availability of competitors in the market has increased. It has impacted on the global
economy as well as current society. I agree with the views of the authors as I believe, in the
changing global economy, market share, as well as the contribution of investors, are very
important. CSR activities can make the process smoother through the social developments.
Sustainable development and corporate social responsibilities are firmly related to
business ideas that have significantly influenced corporate administration during the mid-21st
century. Corporate social duty, or CSR, includes adjusting corporate citizenship and natural
obligation to offer back to the networks in which the work is done. Organizations are ending
up progressively mindful that working in a way that advantages society now and later on can
acquire support with the clients, white disregarding desires for dependable exercises can
prompt negative advertising, blacklists and general reaction from networks in which the

IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
organizations work together. The establishment of sustainability and CSR have been around
for a long time. Due to the changing needs and demands of the customers, sustainability of
business organization in the global industry has become one of the major issues (Doppelt,
2017). In such situations, CSR activities are being introduced by the organizations in terms of
increasing the sustainability in the market. This can be said that due to such practices the
customers' attention is being dragged by the company. However, it is not beneficial for the
organizations for long team profitability. Through the sustainable development, the business
organizations try to fulfil the requirement of the customers without compromising with the
profitability. CSR initiatives are being considered as the smart strategy taken by
organizations to develop the positive image to the customer's mind. I believe, in teams of
developing an effective brand image, CSR activities can be beneficial for maintaining its
sustainable position in customers' mind. I also believe in the current economic situation, the
role of CSR is not enough for maintaining the sustainability. I have identified the competitive
business industry is the major obstacle to this development. Environment, society and
business are interrelated to each other. In the CSR activities faced the failure, it directly
impacts on the business profitability of the particular organization. It has been analysed by
me that both the organizational internal and external environment get affected by the growth
rate of the company.
In the year 1950, the corporate social responsibility has been introduced in an
effective manner for developing the strong relationship with the organizations and society
through an industrial revolution. Depending on the changes in the global economy as well as
organizational management practices, CSR activities has become one of the important
marketing initiatives. If the history of part 50 years is being analysed, it will be identified that
mostly in the developed countries CSR practices were being done. However, after the
globalization, organizations in developing countries have contributed to CSR activities. In the

IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
current scenario, most of the Asian countries have started involving themselves in CSR
policies (Schwartz 2017).
Corporate social responsibility is being considered as the important business
regulation that it helps to develop the business practices. It has been identified that the
financial condition of a business organization is highly influenced by the CSR activities. As
stated by Tai and Chuang (2014) corporate social responsibility has brought the blossom in
the business industry. With the increasing rate of CSR concern and continuous changing
policies has brought the revolution in the business industry. By maintaining the ethical
standard, the business organizations are being pressured to maintain the high standard of
corporate social responsibilities in the business industry. Another way, Romani, Grappi and
Bagozzi (2016) opined that in the current scenario, the Asian and European countries have
started maintaining high ethical standard in the case of developing the CSR policies. By
arguing this Visser and Tolhurst (2017) stated that the CSR responsibilities had become one
of the major concern for the business industry as it has highly influenced the business
revenue. Changing demands of the customers, the way of dealing with the socially
responsible action has changed.
As stated by Tai and Chuang (2014), most of the organizations are not being able to
maintain its share due to several CSR activities. By supporting this Crane and Matten (2016)
opined that it has become very difficult for the organizations to maintain the loyal customers.
Changing living standard and preference of the people, have influenced such processes. If the
CSR issues are analysed, it will be identified that the Corporate Social Responsibility is being
considered as the way, in which different organizations deal with the business processes for
delivering a generally positive effect on society. In the words of Kolk (2016), Manageability,

IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
morals and social effect are being covered by CSR policies. It certain operations of the
companies, those are organizational profit, additional items and humanity.
After analysing the historical evaluation of CSR, it can be said that the CSR is an old idea
developed by American root. In the initial stage, the perspective of CSR was to do the job in
the better manner for getting good from people. However, in the current scenario, CSR has
become one of the effective ways to gain profit (Kolk 2016). In this process, it has been
analysed that the interconnection between the environment, society and business higher level
of significance. These variables are being developed by the involvement of investors, needs
of the customers and economic condition. As a CSR example, this can be said that there are
various organizations, who have taken the initiatives to reduce the greenhouse gas emission.
Different environmental program regarding packaging, uses of fuel and electricity have been
introduced in order to grab the customers attention (Opendemocracy.net. 2018). Another
way, different educational initiatives have also been taken by the companies in terms of
improving the social status. These activities play an important role in the case of influencing
the customers' perspective. As stated by Sheehy (2015), most of the times the business
organizations do not maintain the corporate principles in the proper manner. In terms of
profitability, the ethical standard sometimes gets compromised. On the other hand, it has been
analysed that the in the case of the free market economy, the rate of social benefit can be
increased. In such situations, the business organizations get the chance to freely decide if the
market resource can be devoted or not. In such cases, the capabilities or protecting the
business policies as well as human right protection can get influenced. Hence, it has been
analysed that CSR activities can affect both the positive and negative way in an organization
It has been identified in this study that the in terms of human right protection, CSR
activities cannot work effectively in all the times. Most of the times due to the dissatisfaction

IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
of the customers, such initiatives face the failure. However, Zerbini (2017) stated that CSR
initiatives set the strong benchmark for the companies, in which they are being bound to
follow the human right policies. In such cases, the entire initiatives face the profitability
which helps to improve the organizational image. In the case of ethical business practices, the
business organizations face the challenges due to the improper management practices. It has
been identified that most of the times the ethical barriers as well as business policies create
the challenge to develop the CSR activities in a proper manner. Different human activities
such as dissatisfaction and improper contribution discourage such initiatives
(Opendemocracy.net. 2018).
Corporate social duty in a universal economy comprises of adjusting an organization's
movements to the common, monetary and ordinary requirements. Through the CSR models
the decisive actions, investigations of the evidence and disapproval of the findings and
quality improvement, social obligation duties of organizations are being done. In conclusion,
this can be said that social duty is mining in for the long haul, alongside social receptiveness.
Everybody should live with them. Government, business and society should cooperate all the
more intently to enhance human responsibility. Companies can accomplish both
amplification of benefits and social responsiveness.

IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
References
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
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), pp.23-
34.
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), pp.23-
34.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management,
pp.1-4.
Opendemocracy.net. 2018. The problem with corporate social responsibility. [online]
Available at: https://www.opendemocracy.net/joanne-bauer/problem-with-corporate-social-
responsibility [Accessed 1 Jul. 2018].
Romani, S., Grappi, S. and Bagozzi, R.P., 2016. Corporate socially responsible initiatives and
their effects on consumption of green products. Journal of Business Ethics, 135(2), pp.253-
264.
Schwartz, M.S., 2017. Corporate social responsibility. Routledge.
Sheehy, B., 2015. Defining CSR: Problems and solutions. Journal of Business Ethics, 131(3),
pp.625-648.

IMPORTANCE OF CSR IN A GLOBALIZED ECONOMY
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Business, 6(03), p.117.
Visser, W. and Tolhurst, N., 2017. The world guide to CSR: A country-by-country analysis
of corporate sustainability and responsibility. Routledge.
Zerbini, F., 2017. CSR initiatives as market signals: A review and research agenda. Journal of
Business Ethics, 146(1), pp.1-23.