Corporate Social Responsibility in Business

The essay examines how both internal and external factors influence the operations of contemporary businesses. It delves into the concepts of the micro and macro environment, highlighting the controllable nature of micro-environmental factors and the need for companies to adapt to changing macro-environmental conditions. The essay further stresses the significance of corporate social responsibility (CSR) as a key element in modern business practices, enabling companies to address social, cultural, environmental, and economic challenges.

Essay

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
Macro and Micro factors that change the nature of modern business in the international
environment.................................................................................................................................1
Importance of Corporate social responsibilities..........................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Businesses are changing the way of operating from traditional structure to modern
structure that makes the process of doing business globally. The study will evaluate the micro
and macro environmental factors that can affect the operations, nature of the modern
organisation. Along with it, it will also analyse the importance of the modern businesses to
behaving ethically and importance of corporate social responsibilities.
Main Body
Macro and Micro factors that change the nature of modern business in the international
environment
Modern business is different from the traditional businesses as traditional organisation
represents the hierarchical organisational structure, vertical and upward power flow and
employees are departmentalized but on the other hand modern business is refers to boundary less
organisation that are networking together and collaborating globally more than ever before (Biga
and et. al., 2016). As the modern business can operate globally there are some macro and micro
environmental factors that can affect the nature of business in global environment.
Micro environmental factor are directly in relation with the company and can affect the
organisation on daily basis in their day to day activities. Micro environmental factors include;
consumers; suppliers, shareholders, competitors, etc. Supplier can control the success of modern
business. Companies are dependent on the supplier for the further process as they provide raw
material and inputs to the organisations and they are an integrated part of day to day operations
and they can change the nature of the modern business at global level (Crane and et. al., 2019).
As well as it is essential whether the business is modern or traditional to provide a quality
products and maintain their image in the market so they should select the supplier carefully and
poor supplier strategy can affect the daily flow of production of the company. Success of an
organisation in local or global level is dependent on strong consumer base that are able to affect
the nature of businesses in positive way or in negative way. Modern businesses are targeting
consumers by various marketing strategy including online and offline promotion to grab the
interest of the customer. At global level, the online buying behaviour, preference, different taste,
etc. of the clients can affect the nature of business (McWilliams, 2015). It is essential for the
companies to be consumer-oriented rather than sale-oriented to attain their trust and implement
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strategies accordingly. Competitors are the biggest threat in the micro environment that affect the
nature of modern organisation's profit. They sell same or similar products or services through the
similar channel. They are able to change the nature in negative and positive way. They are also
impact positively, for example; competitors help the company to utilise various technologies,
they help the business to understand what is the trend, etc. that can drive the operation. The level
of competition, various technologies used by them can change the perspective and nature of the
modern business (Crowther and Seifi, 2018).
Macro environmental factors are considered as external factor on which company have
no control and modern business have to change their strategies, nature, operations according to
the change in environment. Political factor are interrelated with legal factor that are responsible
for the change in the nature and operation of the modern business in global level. Each country
where the modern enterprise operates have their own set of law and legislations. For example;
laws regarding companies in specific country such as; company law, laws regarding employee
pay, international trade policies, tax rates can decide that how the modern business have to
operate globally (Crane and et. al., 2019). Social trends can be a drift for change in modern
business at global level. Everything from simple changes in preference and demand to
environmental pressure can affect the operation of company and it is requires to adapt by the
organisation. As the business in the modern context, technological factor affect the company
most. It can change the efficiency of the way of doing business internationally (Grayson and
Hodges, 2017). The changing factor in technology include; technological advancement,
innovation in operation, demand of feasibility and easy online shopping process can affect the
modern businesses. It is essential for modern business to improve and utilise the technology that
consumer can trust upon the company in terms of data and information security.
Importance of Corporate social responsibilities
For the individuals that is working in the organisation or are connected from the business
in any terms from outside and organisation as the whole is responsible for behave ethically and
sustainability (Lee, 2017). Every individual and corporate need to be socially responsible as it
helps in to overcoming the social, cultural, environmental and economic issues. Ethics is a set of
rules and policies that make individual and company to understand what is right and what is
wrong in the way of operating and behaving. Corporate social responsibility is the broad term
that is used to describe people and company's effort to improve society in some way. For
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example; protest against aerosol sprays and allow them to better management and conservation
of strategic assets in the global environment. It is essential to adopt CSR to attract and motivate
others to green and ethical investment (McWilliams, 2015). CSR is when a company operates in
an ethical and sustainable way and deals with social and environmental impacts. That allow the
company to consider carefully of human rights, environment, community and society. For
people, CSR is essential in promoting gender equality and empowering women and they are
more attracted and attached to the social responsible companies.
CONCLUSION
From the present essay, it has been evaluated that micro and macro environment can
affect directly or indirectly to the nature, operation of the modern business. In which micro
environmental factor are controllable according to the company's strategic level but macro
environmental factors are not controllable and company have to adopt the change and develop
strategies as per the change in external environment. It also has been evaluated that corporate
social responsibility is essential for the modern business approach to overcome the issues faced
by the company at global level.
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REFERENCES
Books and Journlas
Biga, N. E. N. A. D. and et. al., 2016. Modern business environment: information technology as
a shield against cyber security threats. In Proceedings of the 8th International Conference
on Business Information Security, BISEC.
Crane, A. and et. al., 2019. Corporate social responsibility: Readings and cases in a global
context. Routledge.
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management.
pp.1-4.
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