Importance of CSR and its Sustainability

Individual Essay

Running Head: Essay
Introduction
This essay describes the changes of the external environment that affect the working of a
multinational corporation or any other company. The study further entails to describe the
challenges that the companies face and what exactly forces them to sustain the rightful doings
such as maintaining the Corporate Social Responsibility in order to stay competitive. This essay
describes the importance of CSR and its sustainability.
Dynamic Business Environment
Today’s business world is dynamic. The major changes in the business environment are due to
the advancements in the technology. Due to technology, the foundations of the business
organizations have adversely changed. The changing business environment and globalization
brought into the phase of business organizations have brought positive outcomes to the business
world. Not only does it help the people to work faster and in an efficient way, but brings changes
in a way on how the work is done. The recent different types of technologies have paced the
structure to the industrial revolution, which has changed the outlook of a business
environment(Goel & Ramanathan, 2014). Different technologies have their different impact on
each kind of industry and the advancements have not just created an impact on one industry, but
has created a huge impact on each and every industry across the globe. Millions of business
organizations are now facing frequent changes in their work environment as the environment is
no more static. The dynamic environment has brought various changes for the organizations,
which are at times difficult to manage. With positive changes within the business environment,
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Running Head: Essay
there are numerous negative effects of advancements that the business organizations have to face
these days.
Factors affecting the Business Environment
The main question here is, what are the factors that contribute to a particular change in the
business organization. It is the internal and external environment to which the business
organization is liable to and it affects the working of the business organization in a large way.
The internal environment includes the size of the organization and the number of population
within the organization that affects its working. The demographics of the people working within
a firm are largely affected. Likewise, it is the external environment as well, which includes of
Political, Economic, Socio-cultural, Technological, Legal and Environmental aspect that makes
the business environment dynamic. The Political environment is inclusive of the political
stability, rules and regulations, political culture and institutions that determine the business
environment(Keeping, 2012). The economic environment as well affects the working of the
business organizations through the government policies structured, culture between the
governments, economic structure and also the socio-cultural environment that affects the
environment are cultures, rituals, social practices of a country and so on. Other than all of this,
there is the legal environment, which includes of the business related laws, consumer laws and
contractual obligations that persist in the business world affecting the working of the business
organization. Also, the technological environment like new innovations and obsolescence that
create a huge impact on the environment and brings about various changes to the same. With all
such factors, it becomes difficult for the companies to manage their working and sustain in the
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