Importance of CSR for Businesses: A Literature Review

This literature review discusses the importance of corporate social responsibility (CSR) for businesses. It covers the concept of CSR, its strategies, and how it enables organizations to develop a positive brand image in society. The review also includes sustainable development theory and CSR theories. The study evaluates the importance of CSR factors for organizations and how it helps in expanding their businesses. The report is based on secondary data collection methods using books, journals, and news reports.

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LITERATURE REVIEW

TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................4
INTRODUCTION...........................................................................................................................5
PRESENTATION OF DATA.........................................................................................................6
PRESENTATION OF MODELS AND THEORIES .....................................................................9
DISCUSSION ...............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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ABSTRACT
CSR corporate social responsibility define as practices which mainly undertaken by the
organisation in order to reduce the factors that degrades the environment.
Reason for selecting this topic is to analyse CSR strategies as to boosts businesses, with this
innovation takes place along with the major cost benefits. CSR values helps the businesses in
expanding their businesses as to create more values in business. Purpose of the study is to assess
the importance of CSR factors for organization.
Following report discussed the CSR aspects, its concept and importance for the businesses.
It also described as CSR strategies that relates to businesses and also describes how it enables the
organization to develop positive brand image in society. It has been also discussed sustainable
development theory and CSR theories.
It is summarized from the CSR evaluation that with the implementation of this businesses
can easily improve their internal and external functionalities and also to developed connectivity
with the community for better outcomes.

INTRODUCTION
CSR is the management concept in which corporations integrates social and ecological concerns
with their business functionalities. Its main aim is that companies must require to give back to
society and give the possible opportunities. It is the main issue or concern area which the
organisations need to consider, with this they will be liable to accomplish the goals and
objectives (Latif, Pérez and Sahibzada, 2020). Currently it is seen that climate change issues has
been raised due to the excessive use of natural resources by the industries, thus CSR comes into
effect in which corporates have certain limit to utilise resources, and they also need to fulfil the
CSR criteria for smooth running of business. Purpose of conducting the literature review on this
CSR topic is to analyse what strategies are businesses taking to fulfil its requirements. As from
secondary data it is evaluated that many companies are taking commitment criteria as to reduce
the environmental waste by 60% to implement CSR values, to reduce the use of plastics for
packaging and many more. Following study covers the importance of CSR for the honest burgers
limited firm, headquarters is in London, UK. Report covers the presentation of data, discussion
and on theories or models which will evaluate in study. The data in present report will be review
from secondary data collection method by using books and journals, news report etc.
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PRESENTATION OF DATA
It has been analysed from the above graph CSR values develop the significant customer
support to the organisation (Fatma and et.al 2020). As by following the CSR factors and
strategies allow the organisation to develop good brand image among the society. In food and
beverage industry it is found that they mainly invest on the packaging by using different
materials that looks attractive but have no sustainable quality. Because of this major
environmental issues has been raised which need to be address in order to meet the
environmental credentials. There are many food companies such as McDonald who committed to
follow the five pillars of the sustainability as to help the community. Thus Honest burger can
also proceed to implement the CSR policies in order to develop good relationship with the
community.

It has been interpreted from the data, CSR helps the businesses to implement the positive
work place environment as to motivates the employees to lay out the task in a certain manner
that will accounts the sustainability. It helps in delivering the services to the market so that
customer will attract towards it (Kong and et.al 2021). Thus consumer in the market looks for the
product which is organic and have sustainable value therefore honest burger limited firm can also
go with this strategy to share good market position.
It has been found that CSR impacts the consumer decision, as study evaluated that almost
50% respondents are agreed that it has effect over their buying of product. As for the
organisation it develops the sense of responsibility towards the community also develop trust and
faith between the community and organisation. It also promotes the growth of company in terms
of good revenues (Shahbaz and et.al 2020). Thus for the honest burger it is recommended to rely
on the biodegradable resources and to reduce the use of energy and other natural sources for
sustainability. Company can proceed to switch on recycled materials and to avoid using of such
items which takes years to decompose such also cause pollution and other climatic change
factors. Above graph has shown that customers in the market also focusing on the product that
meets their requirement as well as environmental requirement, thus it is essential for the firm to
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go with the strategy which allows the customer to differentiate between their product and
services with others (Viererbl and Koch, 2022).
Thus follow of the CSR strategy as to commit by reducing the use of the materials that
causes the increment of carbon footprint will help the businesses in order to grow in their market.
As sustainability is the main issue which is mainly face by the organisation, thus to promote the
CSR will help them in providing support to the community, for the honest burger they can also
proceed to provide the job opportunities to the communal people. It will guide them to move
forward and to achieve the sustainable goals.

PRESENTATION OF MODELS AND THEORIES
According to Carroll (2021), corporate social responsibility which keep is the legal action and
operational changes that can make the business with having ideally make their benefits. While
having such practices that organization can pick up their role in conserving resources or giving
awareness to section in society. Sustainable development theory is ideas that brings out the
human societies which must live and meet their needs without compromising the ability of future
generation to meet out their own needs. Alongside, sustainable development is way that
organizing the society so that can exist in long term. This also means about for taking accounts
with both imperatives present and those of having future such as environment preservation and
natural resources of social or economic equity. Okafor, Adeleye and Adusei (2021) argue that,
individuals act independently, rationally and focused on pursuing with their working individual
and ensure them for having some common interest of their communities and exhaust the planet
nature resources. In this way, the human free access and unlimited with consumption of
resources which could be extinguished these same resources. It also believed about radically
changes its way with using some common resources in avoiding the disaster in the future. It can
also have the way to keep on sustainable development track. Sustainable development for CSR
that can become the fundamental strategies for guiding the world social and economic
transformation. Therefore, process of practices are still being misinterpretation in regards with
their highlighted terms and struggle between strong and weak sustainable development paths.
As per Dmytriyev, sFreeman and Hörisch (2021), corporate social performance is theory which
is grounded sociology and has evolved them with several previous approaches and notions. In
order for improving the corporate social performance this seems to be having altering corporate
behaviour for producing less harm and more beneficial outcomes for their people and society.
CSR that understand the economic responsibility what is being required by global and legal
responsibility what is required by global stakeholder or expected by them. This could be
maintained that business from their wealth creation about all responsibility for social problems
which is being created by business or by any other causes beyond their legal and economic
responsibility.
Meseguer-Sánchez and et.al., (2021) said that, The long term economic consequences for the
organization which is not always easy for evaluating or not main consideration for their work
and assuming more about social responsibilities. Business needs to be acceptance, due to having
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such things this seems to society changes evidence for suggestion and business depends upon
their acceptance or socio-human responsibilities. In essence, corporation are being obliged for
considering some possible stakeholder because for having society ar large and this stakeholder
were the ones wsho might be giving corporation permission for doing business at their places.
Along with this, having such things this could be seemed that CSR which play the effective role
through which organization can easily ensure them for developing and keep their role for
conceptual. The institution of business exists about their performing valuable services to
perception and society for longer performing and understanding about organizational principle
responsibilities.

DISCUSSION
From the above it had been discussed that, corporate social responsibilities play the effective role
in business with having high rating and this could keep the organization for working with some
effective growth and development. The management concepts for company integrated about
environmental and social concerns in their business and interaction with having stakeholder. This
could also understand through the various way which the company achieved the balance of
economics, social imperative and environmental. While having same time addressing about the
expectation of shareholder and stakeholder in which it allows for drawing the distinction
between CSR and can be strategies business management (Boubakri and et.al., 2021). CSR in
organization make the valuable contribute and directly enhance the reputation of company with
having their strength for brand and clearly goes beyond for that. However, promoting for up
taking the CSR among them with required approaches and ensure them with having respective
needs and capacities of their business. Along with these approaches for having such succession
tools in developing countries and business activities assists them with meeting environmental
and social standards without compromising their competitiveness.
It is an important attempt for having private enterprises to goals with sustainable
development by providing them with more comprehensive set of working objective and ensure
them with some profits in organization. While this can make them for working with some
effective concepts and keep them for having profits aspects with their set of working (objective)
than just profits alone (Tsai and Wu, 2021). From the above it had been also seems that CSR in
organization is also facing issues within environmental management, responsible sourcing,
stakeholder engagement and working condition, community relation, human rights, good
governance and employee. For having such things this seems to be important for having their
estimated resources and makes sure for having effective development. CSR rates in organization
is being high so that can keep organization for having growth and development and also help
their employee for keeping resources working.
While having such things above graph represent about how the CSR activities can make
their organization development and ensure them with effective market share. CSR activities also
represent about how usually they act and keep their terms for working effectively or easily bring
changes with variety of competitive advantages. Along with this also help for enhanced their
accessing markets and capital. Increased sales and profits, operational costs, improved
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productivity, efficient human resources, improved brand images and enhanced customer loyalty
so that can easily make them for working with better position (Úbeda-García and et.al., 2021).
While the organization can easily take the place as shown in graph which represent about how
they have made themselves developed and author also discussed various models and theories
which keep estimated about various activities.

CONCLUSION
It has been summarised from the above study that follow of CSR criteria helps the businesses in
creating new values and to promotes the business in societies. Above report has illustrated how
organisations who are not committed to reduce waste faces a vulnerable situation. It has covered
the literature review that has evaluated the secondary data, which also describes how
organisation are committed to reduce the environmental impact. It further discussed about the
presentations of data which includes the CSR values and descriptions over it as how firms are
strictly following its guidance to fulfil its criteria. Report further discussed presentation of
models and theories which mainly covers the sustainable development theory and CSR model
along with its key points that gives the complete analysis of the topic. It lastly concluded with the
discussion over the topic which lay out the implications of the finding for the organisation.
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REFERENCES
Books and journals
Boubakri, N. and et.al., 2021. Corporate social responsibility in emerging market economies:
Determinants, consequences, and future research directions. Emerging Markets
Review. 46. p.100758.
Carroll, A.B., 2021. Corporate social responsibility: Perspectives on the CSR construct’s
development and future. Business & Society. 60(6). pp.1258-1278.
Dmytriyev, S.D., Freeman, R.E. and Hörisch, J., 2021. The relationship between stakeholder
theory and corporate social responsibility: Differences, similarities, and implications for
social issues in management. Journal of Management Studies. 58(6). pp.1441-1470.
Fatma, M. and et.al 2020. The effect of CSR engagement on eWOM on social
media. International Journal of Organizational Analysis.
Kong, L. and et.al 2021. CSR as a potential motivator to shape employees’ view towards nature
for a sustainable workplace environment. Sustainability. 13(3). p.1499.
Latif, K.F., Pérez, A. and Sahibzada, U.F., 2020. Corporate social responsibility (CSR) and
customer loyalty in the hotel industry: A cross-country study. International Journal of
Hospitality Management. 89. p.102565.
Meseguer-Sánchez, V. and et.al., 2021. Corporate social responsibility and sustainability. A
bibliometric analysis of their interrelations. Sustainability. 13(4). p.1636.
Okafor, A., Adeleye, B.N. and Adusei, M., 2021. Corporate social responsibility and financial
performance: Evidence from US tech firms. Journal of Cleaner Production. 292.
p.126078.
Shahbaz, M. and et.al 2020. Board attributes, CSR engagement, and corporate performance:
What is the nexus in the energy sector?. Energy Policy. 143. p.111582.
Tsai, H.J. and Wu, Y., 2021. Changes in Corporate Social Responsibility and Stock
Performance. Journal of Business Ethics, pp.1-21.
Úbeda-García, M. and et.al., 2021. Corporate social responsibility and firm performance in the
hotel industry. The mediating role of green human resource management and
environmental outcomes. Journal of Business Research.123. pp.57-69.
Viererbl, B. and Koch, T., 2022. The paradoxical effects of communicating CSR activities: Why
CSR communication has both positive and negative effects on the perception of a
company’s social responsibility. Public Relations Review. 48(1). p.102134.