Corporate Social Responsibility and Credit Score

The provided project report delves into the significance of corporate social responsibility (CSR) in organizational development. It explores how CSR affects internal and external factors, including financial performance, goodwill, and market value. The report emphasizes the importance of considering all sectors of the environment while implementing CSR, as it can resolve various issues within an organization. Additionally, it touches upon the emerging trends in CSR and its potential impact on organizations in the future.

INDIVIDUAL REPORT
ON (Corporate social
responsibility)

EXECUTIVE SUMMARY
The project report abstracts detailed information about the role of literature review for the
researchers. Further, it summarizes about the corporate social responsibility and its impact on the
organisation as well as it reflects the review of various sources on the CSR.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
1.INTRODUCTION........................................................................................................................4
1.1 Literature review....................................................................................................................4
1.2 The purpose of literature review............................................................................................5
2. LITERATURE REVIEW............................................................................................................6
2.1 Definition of corporate social responsibility according to the literature review...................6
2.2 Discussion on the corporate social responsibility..................................................................6
2.3 Literature review on three key issues regarding to the corporate social responsibility.........7
3. ANALYSIS..................................................................................................................................7
4.RECOMMENDATIONS..............................................................................................................9
5. CONCLUSION............................................................................................................................9
6. REFERENCES............................................................................................................................9

1.INTRODUCTION
Corporate social responsibility is all about completing the responsibilities by the
organisations towards the business environment in which they exists. In the context of today's
competitive environment, it is becoming necessary for the companies to adopt the CSR model in
their plans and strategy. Eventually, an organisation is completely based on the business
environment so it is the responsibility of the organisation that they should pay attention on the
various factors of environment. It includes public, external parties and internal team of the
company. The project report contains detailed information about the literature review and CSR
role in the aspect of business environment. In addition it draw the reader's attention towards the
issues regarding to the corporate social responsibility. The main purpose of this report is to
focusing on the necessary responsibilities of an organisation towards the society and it's
employees. Apart from this, it also covers about the role of literature review in the aspect of
readers and researchers. Additional, this report states the issues which arise in the organisations
due to not applying the corporate social responsibility.
1.1 Literature review
Literature Review- This is a kind of secondary research on the various topics or subjects.
The main aim of this review is to demonstrate the deep analysis of any research to the readers
and researchers. Eventually, a literature review evaluate the techniques which is used in the
research as well as analyse the each source's information. This type of review is a critical
evaluation that summarize the entire data of particular research topic. In addition, it is important
to know that a literature review is always done on the previous researched topic. This can not be
done on the new subjects which have not researched. Moreover, it plays a crucial role for the
new researchers who wants to do research, it reduce their work load as well as save the time and
cost. A good literature review has the following features:
 Informative- Good literature review provides detailed information about the
topic or subject on which research is done.
 Focused- It focuses on the main viewpoint of the researcher in the research
report.
 Evaluative- Literature review evaluates the methodologies and source of
information.

 Collaborative- Effective literature review collaborates the researchers while they
try to start research on any new topic or subject.
1.2 The purpose of literature review.
Literature review is very important for all the readers and new researchers because it
provide detailed needed information to them. In addition, it provides the foundation of particular
subject as well as identifies the certain conflicts and gapes in the research topic. Herein, some
important purpose of the literature review mentioned below:
 Provide detailed information about the research topic- Literature review helps
in offering complete information about the subject or topic of research.
 Critical evaluation- Those who want to do research they get the critical
evaluation and review on particular subject or topic.
 Justify the research- Literature review helps in justifying the research and
suggest whether there is need of additional research or not.
 Overcomes from conflicts- Good literature review helps in solving the various
kind of conflicts that exists in the past research.
 Highlight the key areas- It is helpful in highlighting or focusing on the areas
which are important in the context of readers and researchers.
 Save the cost and time of researchers- Literature review is important in saving
the cost and time of the new researchers who do not have enough knowledge
about the topic.
 Elimination of duplication- It helps in preventing the duplication of work
because this ensures that new researchers can not use the information which is
already used by others.
2. LITERATURE REVIEW
2.1 Definition of corporate social responsibility according to the literature review.
According to the Bowel, corporate social responsibility a kind of model that includes a
set of obligations and responsibilities which are needed to be followed by the organisations to
survive in the competitive environment. This is very necessary part for all the companies that
they need to acquire CSR for satisfying the need of the all the factors which are related to the
organisations including society, shareholders, stakeholders etc. In the absence of this model,

companies can not survive in the environment. In addition, the pattern of corporate social
responsibility should be oriented towards the society, not only for their own purpose.
As per the Buchholtz, corporate social responsibility is aligned with the financial
performance of the organisations. If companies are completing their responsibilities towards the
various sector of the business environment then it would be easy for them to gain revenue. This
is why because if customers are satisfied with the company then they will help in increasing the
profitability.
2.2 Discussion on the corporate social responsibility.
According to the Mallen Baker, In the context of this changing business environment
various trends are emerging in the corporate social responsibility. Organisations determine the
pattern of as per the need of the society and accordingly they set the responsibilities towards the
general public. As well as relationship between society and organisation is also changing, now
customers expect more from the organisations. It is the responsibility of the companies to
provide quality products and services. In addition, role of CSR is increasing continuously in
enhancing the market value of the companies. This is why because in the absence of effective
implementation of corporate social responsibility, it would be difficult for the companies to make
a mark in the mind of general society. Apart from this, corporate social responsibility is not only
needed for the external part of business environment but also it is required for internal
management of the organisation. It helps in overcoming the challenges which occurs in the
organisations. This shows the role of CSR in various factors regarding to the business.
2.3 Literature review on three key issues regarding to the corporate social responsibility.
According to A.B Carroll, corporate social responsibility is related to completing the
responsibilities towards the business environment. In the absence of CSR, there may arise many
kind of issues which can effect the performance of the business. Herein, some key issues
regarding to the corporate social responsibility are described below:
 Inequality at work- This issue arise in the companies when employees are
treated in unequal way. The reason behind this inequality is the discriminating the
workforce on the basis of age, sex, religion, colour etc. Basically, these kind of
issues can be eliminate with the implementation of corporate social
responsibilities.

 Seize the right of employees- It is a kind of issue which is related to seizing the
valid rights of the workforce. The reason behind this issue is the absence of
corporate social responsibility.
 Unfair reward system- The reward system is needed to be apply on the basis of
employees performance. In some organisations, reward is provided to the
employees as per the religion, age, sex or many other factors. This type of issue
arise because of wrong planning of corporate social responsibility at the
workplace and it can be sort out by making CSR model equally for all factors of
business environment.
3. ANALYSIS
As per the (Turker 2009), corporate social responsibility is linked up with the
organisational commitment. Eventually, organisational commitment is about the relationship
between employees and organisation. This increases when employees commits themselves
towards the welfare of the company. Herein, corporate social responsibility plays a crucial role in
making employees committed towards the goal and objectives of the organisation. This is why
because if companies are paying attention towards the responsibilities for the employees like
payment of salary on time, treating all the employees etc. All these responsibilities are count in
the process of making employees committed towards the organisation.
According to (Nelling,2009) Financial performance of the organisations depends on
several factors. Additional, if companies are maintaining the corporate social model towards the
all factors of the business environment then financial performance will surely increase. This is
why because if employees are satisfy with the CSR model then they will work with full of
efficiency. As well as if company is completing their responsibilities towards the society then it
will help to the company in earning revenue. For example if a company that deals in the selling
of organic vegetables. They offers fresh vegetables but their revenue is not so good. This is why
because their CSR model is oriented towards the general public not for the employees. They are
avoiding the responsibilities for their employees and due to this their efficiency of work is low,
that overall result in the less profitability.
According to (Lai, 2010) Chiu and Yang, Corporate social responsibility model has the
relation with the brand equity of the organisation. Basically, brand or goodwill of a company
depends on the way in which they completes their responsibilities for the society. If they are

focused for the welfare of the society then it will increase the brand of company among the
customer and that will directly link to the profitability. On the reverse side, if organisation is not
aware about their responsibilities for the general public then it will decrease the brand of the
company. So corporate social responsibility is important in creation and increasing the brand
image of the organisations.
According to the (Garavan and McGuire, 2010) Human resources are kind of resources
which manages all the responsible activities. In the context of corporate social responsibility,
human resources are very important because without their effort it is impossible to implement the
CSR model. Basically employees and managers help in creating the ethical values.
According to the (Arendt and Brettel, 2012) Corporate social responsibility influences the
organisational image, performance and identification. These three factors are under control of the
CSR. In the absence of effective model of corporate social model it can be difficult to achieve
financial performance and goodwill. For example there is a company which is managing all the
activities and functions effectively but they are unable to achieve profit and goodwill. Herein,
they require CSR model that can help them in achieving all the objectives and goals.
According to the (Prior and Argandona, 2009) Credit score plays an important role in
getting loan of large amount. This credit score is largely depends on the model of corporate
social responsibility. If company's CRS model is oriented towards the all factors of the business
environment then it will be easy for the company to get good amount of loan. On the other hand,
financial institutions also use the CRS model for measuring the credit score of the companies.
4.RECOMMENDATIONS
As per the above mentioned project report it has been recommend that corporate social
responsibility is becoming the necessary part of all kind organisation. The reason behind this is
that this model covers all the responsibilities towards the factors of business environment. In
addition, companies should focus on making the plan of CSR model by considering all the
factors which can effect them. It should not be designed one way oriented. Apart from this,
organisation should understand the value of this model and try to align it with the organisational
strategies for better result. So overall it can be recommend to the organisations that they should
try to contribute to the society and other factors of environment for development of the country
as well as of themselves.

5. CONCLUSION
From above project report it has been concluded that corporate social responsibility
model plays a crucial role for the internal and external development of the organisations. This is
why because if company is paying their attention towards the all sector of the environment then
it will enhance the financial performance, goodwill and market value. As well as it resolves
many issues of the organisation which arise inside. Additionally, it can be concluded that credit
score of an organisation depends on the effectiveness of CSR. There are many trends which are
emerging in the context of corporate social responsibility model. This shows that in future, this
model will have more significant impact on the organisations.
6. REFERENCES
Books and journals:
Turker, D., 2009. How corporate social responsibility influences organizational
commitment. Journal of Business ethics. 89(2). p.189.
Nelling, E. and Webb, E., 2009. Corporate social responsibility and financial performance: the
“virtuous circle” revisited. Review of Quantitative Finance and Accounting. 32(2).
pp.197-209.
Lai, C .S., Chiu, C .J., Yang, C .F. and Pai, D. C., 2010. The effects of corporate social
responsibility on brand performance: The mediating effect of industrial brand equity
and corporate reputation. Journal of business ethics. 95(3).pp.457-469.
Garavan, T .N. and McGuire, D., 2010. Human resource development and society: Human
resource development’s role in embedding corporate social responsibility, sustainability,
and ethics in organizations. Advances in Developing Human Resources. 12(5). pp.487-
507.
Arendt, S. and Brettel, M., 2012. Understanding the influence of corporate social responsibility
on corporate identity, image, and firm performance. Management Decision. 48(10).
pp.1469-1492.
Prior, F. and Argandoña, A., 2009. Best practices in credit accessibility and corporate social
responsibility in financial institutions. Journal of Business Ethics. 87(1). p.251.