Role and Importance of Corporate Social Responsibility

This presentation explores the role and importance of corporate social responsibility (CSR) in businesses. It discusses how CSR improves brand image, builds interaction values, improves performance, builds a large customer base, promotes humanity, and increases government support. The challenges of CSR, such as funding and competitive environment, are also discussed. The presentation concludes with the need for productive strategies to overcome these challenges.

Corporate Social
Responsibility

TABLE OF CONTENTS
 INTRODUCTION
 ROLE AND IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY
 CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY
 CONCLUSION
 REFERENCES

INTRODUCTION
 Corporate social responsibility (CSR) is one the major part of business activities.
 Most companies fulfil their CSR to maintain positive brand image in the market.
 It is providing most favourable ways to businesses to contribute in social work.
 For example: Marks & Spencer now reducing use of plastic in their manufacturing
processes, so this step of the company comes under corporate social responsibility.

ROLE AND IMPORTANCE OF CORPORATE SOCIAL
RESPONSIBILITY
 Corporate social responsibility plays great role in all type of businesses.
There are some importance and role of CSR has been mentioned below;
 Improve Brand Image: CSR is very important to companies, because it is
helping in improving company's brand value. Suppose, M&S reducing use of
plastic, in which this step of company will put positive impact on customers.
They will feel, company is caring for our environment. They will prefer only
this company to buy products and services, so at the end company's brand
will automatically improve.

CONTINUE…
 Build Interaction Values: This plays great role in building interaction
values as well. Suppose, a company want to fulfil CSR, in which it can meet
different people in the market. That's why these all actions of company can
help in build interaction values. With the support of these values company
can develop its effective relationship with their customers as well.

CONTINUE…
 Improve Performance: Corporate social responsibility is too supportive to
companies for improving its current performance. Reason is, when any
company fulfil CSR, then their employees feel good about company. They
realize, their company think about people, our world, our environment, etc. so,
they can put their more efforts in the company's daily operations. At the end,
when employees put huge efforts, then its over all performance will
automatically improve. This is the way, corporate social responsibility is
helpful in achievement of decided goals.

CONTINUE…
 Build Large Customer Base: Most customers always like to buy products and
services from those companies which fulfil CSR on time. In this case, each
company need to fulfil corporate social responsibility on time to attract lots of
customers in market. When any company fulfils this, then it emotionally
influences customers, because they are emotionally connected with this
beautiful world, this environment, this nature. That's why they always like to
buy things from companies which time to time fulfil CSR. They also realize,
company think about our society, so this is how it is helpful in build large
customer base.

CONTINUE…
 Promotes Humanity: CSR is the best way to companies to show their
humanity to world. In this case, when any company fulfils corporate social
responsibility, then it'll able to show its humanity to customers, employees,
government, investors. Many companies opens free schools for slums, opens
free hospitals, opens free colleges, etc. These all activities of companies show
their humanity aspect. People give huge respect to those companies which
freely work for social welfare. This type of companies motivate other people
too for giving contribution in social welfare. That's why corporate social
responsibility is helpful in promoting humanity in the world.

CONTINUE…
 Increase Government Support: This is also a major importance of CSR,
because government always gives additional support to those companies
which time to time fulfil corporate social responsibility. Suppose a company
want to open a free school for slum's children. In this situation, many times'
government provides free land, electricity, and water etc. to that company
for easily construct free school. In some case government reduce taxation
rate too for this type of companies, so this is the reason, CSR is important to
a company to achieve its decided goals in the market.

CHALLENGES OF CORPORATE SOCIAL RESPONSIBILITY
 When any company or business fulfil CSR, on that time it faces some
challenges as well. Some major challenges of corporate Social Responsibility
has been mentioned below;
 Challenges Related to Fund: Mostly those companies fulfil CSR which has
some extra fund. Small business can't fulfil corporate social responsibility on
time. Many small businesses also fulfil this, but at the small level. In this
case, when any company want to complete fulfil this, then it faces too many
challenges in arranging specific fund. Many times company avoid CSR,
because they can't able to raise a needed fund for this.

CONTINUE…
 Strong financial base is the main source to companies for fulfilling this
responsibility. That's why it is not a small task to small businesses. Many
times this promotes crises between different departments in a company. For
example; A manager who work for fulfilling CSR want some fund for fulfil
this. But the finance management not giving fund to that manager, because
of lack of fund. This type of situations promotes conflicts within
companies.

CONTINUE…
 Challenges Related to Competitive Environment: Competitive business
environment also develops some challenges to a company when it fulfils CSR.
Suppose a company want to open a free hospital in a small town of UK. But on
that same time its competitors also decides to open a free hospital in that same
town. In this case, it is a big challenge to the company, because it can't achieve
high results from its CSR activities. Mostly competitive business environment
put negative impact on any the company's corporate social responsibility. In this
situation, a company need to create some specific CSR policies within their
business environment to deal with challenges of competitive environment.

CONTINUE…
 Challenges Related to Management: These are very common
challenges which every company has faces when it start a new task.
Suppose a company want to start work for corporate social responsibility.
In this case, it needs to hire an additional team which will manage it's all
CSR activities. This type of steps increase workload within the company,
so these are also some major challenges of CSR.

CONCLUSION
 It can be concluded that corporate social responsibility is very favourable to a
company, because with help of this it easily able to achieve its goals.
 On the other side, a company need to develop some productive strategies or
tactics to easily deal with CSR's challenges.

REFERENCES
Books and Journals
Bhandari, A. and Javakhadze, D., 2017. Corporate social responsibility and capital allocation efficiency. Journal of
Corporate Finance. 43. pp.354-377.
Bhardwaj, P., and et.al., 2018. When and how is corporate social responsibility profitable?. Journal of Business
Research. 84. pp.206-219.
Klimkiewicz, K. and Oltra, V., 2017. Does CSR enhance employer attractiveness? The role of millennial job seekers'
attitudes. Corporate Social Responsibility and Environmental Management. 24(5). pp.449-463.
Online
Garcia, M. 2019. What Are the Functions of Corporate Social Responsibility?. [Online]. Available Through:
<https://bizfluent.com/info-8459857-functions-corporate-social-responsibility.html>.
Schettino, A. 2016. What is Your Role in Corporate Social Responsibility?. [Online]. Available Through:
<https://www.legal-island.com/articles/uk/features/hr/2016/feb/what-is-your-role-in-corporate-social-responsibility/>.