Importance of Corporate Social Responsibility for Businesses

This presentation discusses the importance of following the practices of Corporate Social Responsibility (CSR) for businesses and the challenges they face in implementing CSR. It highlights the benefits of CSR, such as engaged employees, loyal customers, and positive attention from the public. It also addresses the challenges of implementing CSR, including lack of resources, lack of strategic vision, low willingness to pay for CSR, and low community participation. The presentation concludes by emphasizing the need for businesses to practice CSR despite these challenges.

PP PRESENTATION
DEVELOPMENT

INTRODUCTION
 Corporate social responsibility is a type of international private business self-regulation
that aims to contribute to societal goals of a philanthropic, activist, or charitable nature
or by engage in or support volunteering or ethically-oriented practices.
 This presentation covers issues such as Importance of following the practices of CSR
for the company and what are the challenges they face in the process.

Why is it necessary for business to practice CSR
 Businesses has many ways of contributing to the factors of CSR such as making
donations in the form of charities, volunteering by their employees, making strategies
in the stages of production which does not affect the environment.
 Also practices of labor in an ethical way. If these practices are followed by the
company then consumers will think that the company is giving a thought to help the
community. CSR will help the company in many ways

CONT..
 Engaged Employees
 It is necessary that the company treats their community in a good manner as it will
create a sense of respect in the minds of employees. This sense will make them feel
more convenient with work which will make them to work according to their potential.
 Business asks or encourages their employees to work for a social and those who agrees
feel motivated that their efforts and skills are able to help someone who are in need and
does not have the resources to fulfill basic needs. This will also help the company to
increase the level of employee retention.

CONT..
 Loyal Customers
 CSR will help the company to get customers who are loyal and enjoy the premium
pricing of product. If the company is engaged in these type of practices which is
helping the society to develop then the consumers will easily spend money on that
brand as it will develop trust between them.
 This helps to increase the social value of the company which works as a driver of
purchase. Apart from this there is another factor which is known as commitment to the
community of the brand which also works as a driver of purchase. If the values are
aligned in the right way then they will remain loyal to the company.

CONT..
 Positive attention of Public
 Businesses who are engaged in the policy and practices of CSR will turn out as a leader
and the role model of the community which will inspire others to follow the same
procedures.
 This also helps the companies to grab the interest of media by which they spread the
positive stories which helps the company to increase the level of awareness of the
brand.
 This also opens the gate for the company to be awarded for contributing their efforts
and resources for social development. This helps them to promote their brand in a
positive manner in the community.

Challenges of implementing CSR in the current business
environment
There are various challenges that businesses faces while implementing CSR.
 Lack of Resources
 This factor is a challenge for the business as it needs resources such as finances, human
resources and knowledge of the area to carry out CSR. In order to make it effective large
amount of CSR is required. Companies assess that the budget of CSR and the investment
made on the activities of it must be able to collect high returns. Other than this the experience
of employees in this area is evaluated so that successful activities of CSR can be practiced.
 Lack of strategic vision
 Companies need to implement the activities of CSR in their mission, vision and objectives.
Many of the companies are operating on an operational level and they need to integrate their
strategic vision with the activities of CSR. The weak support of financial aspects is a challenge
for the company which stops them to maintain the relationship between the activities of CSR.

CONT..
 Low willingness to pay for CSR
 Many companies know that consumers value those firms which practices the activities
of CSR but some of them still does not considers as an important aspect because they
are not getting recognized for their efforts.
 Less level of participation by the community in the activities of CSR
 Local community does not volunteer or participate in these aspects as they do not have
the awareness or knowledge of this aspect. No efforts are being taken in order to
increase the awareness which is leading to lack of communication between
communities and companies.

CONT..
 Increase local capacities
 In order to make them understand the importance of CSR it is needed public
organizations are trained so that they can work efficiently and contribute in those area
where initiatives are taken by businesses. If these are not taken into consideration then
the initiatives taken by the businesses will be stopped.
 Perception towards the initiatives of CSR
 Government of some countries have a narrow minded concept against these activities
because of which businesses do not have the support of government to take the
initiative of these activities.

CONCLUSION
 From the above PPT it has been concluded that businesses needs to practice CSR as it
helps to increase the awareness of the brand and improve the level of employee
retention of the company.
 Other than that it also helps them to enjoy premium pricing as consumers are ready to
pay more to those companies who are integrated or aligned with the activities of CSR.
 There are many different challenges which creates difficulties to practice them but in
order to reduce the impact of that they need to increase the awareness of it to local
communities.

REFERENCES
Books and Journal
 Albuquerque, R., Koskinen, Y. and Zhang, C., 2019. Corporate social responsibility and
firm risk: Theory and empirical evidence. Management Science, 65(10), pp.4451-4469.
 Benlemlih, M. and Bitar, M., 2018. Corporate social responsibility and investment
efficiency. Journal of Business Ethics, 148(3), pp.647-671.
 de Jong, M.D. and van der Meer, M., 2017. How does it fit? Exploring the congruence
between organizations and their corporate social responsibility (CSR)
activities. Journal of business ethics, 143(1), pp.71-83.
 Dyck, A., Lins, K.V. and Wagner, H.F., 2019. Do institutional investors drive corporate
social responsibility? International evidence. Journal of Financial Economics, 131(3),
pp.693-714.

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