Role of Business Organization in the Society and the Importance of Corporate Social Responsibility

Argument essay good csr company- toms shoes bad csr company - max mara ( selling real fur coat )

Running head: CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
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Introduction
Business organizations play an important role for the development of the economy. The
corporate social responsibility of the business organizations is increasing at a rapid rate. The
concept of corporate social responsibility has gained attention worldwide due to the increase in
demands for enhanced and transparent corporate citizenship (Amran, Lee and Devi 2014). The
corporate social responsibility embraces social, ethical, and environmental challenges. In today’s
business organization, the business organization is being increasingly aware of the social and
environmental impact of the operations of the business organization. It is the responsibility of the
business organization to be a good corporate citizen rather than only maximizing the profits. The
purpose of this essay is to analyze the role of business organization in the society and the
importance of corporate social responsibility.
Discussion and analysis
There are many research and arguments regarding corporate social responsibility of the
business organization. However, it can be clearly stated that CSR has increase demand in the 21st
century (Amran, Lee and Devi 2014). According to the government, corporate social
responsibility is considered to the contributions of the business organizations towards sustainable
development. The concept of corporate social responsibility is greatly influenced by
globalization. It is generally believed that corporate social responsibility might increase the
profitability of the business organization, therefore, it can be seen that large business
organizations are more actively engaged in taking CSR actions and initiatives (Attig et al. 2013).
However, many researchers and authors are of the opinion that CSR does not necessarily

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increase the profitability of the business organization; rather it is a duty and the responsibility of
the business organization towards their society and environment. Therefore, linking profits with
abstract variables might be challenging tasks many managers and executives of the business
organization are of the opinion that corporate social responsibility can improve the profitability
and boost sustainability of the business organization (Deng, Kang and Low 2013). Corporate
social responsibility can promote respect and increase the reputation and brand image of the
business organization in the market place. The increased reputation and brand image of the
business organization can promote respect which in turn can increase profitability and improve
the profit levels of the business organizations (Doh, Littell and Quigley 2015). Furthermore,
better corporate social responsibility of the business organizations might have the possibility to
enhance employee loyalty and attract better personnel’s or employees to the business
organizations. As workers and employees prefer working for the business organizations which
have better reputation in the market (Fontaine 2013). Most importantly, the corporate social
responsibility and activities of the business organization mainly focuses on sustainability issues
which in turn might lower the costs and improve the efficiency of the business organizations.
The corporate social responsibility activities and initiatives of the business organizations are
considered to be an added advantage to the business organizations. This might enhance the stock
price of the business organization and making executives stock options which is more profitable
for the organizations (Khan, Muttakin and Siddiqui 2013). These initiatives might satisfy the
shareholders of the business organizations.
As per the recent study, it has been identified that corporate citizenship has been
increasing importance in the recent past due to the long term heath and profitability of the
companies. They might gain a return on the investments from its corporate social responsibility

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activities and initiatives. As per the recent surveys and research, it has been identified that 75%
of respondents, agree that corporate citizenship and corporate social responsibility initiatives
benefits the business organizations to increase their profits and improve their bottom line (Tai
and Chuang 2014). Therefore, this strategy of the organizations is highly essential for the
business organizations.
TOMS Shoes has excellent corporate social responsibility programs and initiatives. Toms
Shoes efforts are mainly focused on social and environment in all aspect of their core business
operations and activities (Yusoff, Kamaruddin and Ghani 2018). The business organization
considers using organic cotton, recycled polyester and natural hemp, while on the other hand, the
boxes of the shoes are made from 80% of recycled post consumer waste, the print is done with
soy ink. This is one of the best initiatives that are undertaken by the business organizations.
Further, Tom’s business organization ensures that the suppliers incorporate certify materials in
their products (Tai and Chuang 2014). The company ensures that their products are in
accordance and compliance with the laws and regulations of the government. They undertake a
‘one for one approach’ which focuses on the importance of the organization in building
sustainability for the organization. They present a commitment to personal and corporate social
responsibility.
In today’s business environment, being sustainable is one of the most important aspects
of any fashion brand industry (Khan, Muttakin and Siddiqui 2013). The waste generation in the
fashion industry has become out of control and same with Max Mara Company. The left over
material in Max Mara Company goes to waste within the design process. However, at Max Mara,
design team has undertaken ‘up cycling approach with CamelLuxe material (Doh, Littell and
Quigley 2015). The company has been argued that Max Mara has fragmented supply chains

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along with obscure accountability. Additionally it was stated by Amran, Lee and Devi (2014),
that the company does not actually own the manufacturing facilities, which makes it difficult for
the organization to take control of their working situations and it affects globalized supply chain.
It has been stated that fashion companies especially must be transparent in their sustainability
goals and CSR practices. Max Mara faced allegations and accusations that their workers work
under turbulent and poor working environment (Amran, Lee and Devi 2014).
Conclusion
Therefore, from the above analysis, it can be concluded that having transparent CSR
activities and efficient practices in the business organization is highly essential for the
sustainability of the business organization. The concept of Corporate Social responsibility has
been influenced by globalization. The essay has analyzed the two companies Tom Shoes and
Max Mara and determined their corporate social practices. It has been identified that Tom Shoes
excels in their CSR practices while on the other hand, Max Mara lacks initiative and control in
their corporate social practices which reduces their reputation in the market. This might impact
their profitability in the long run.

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References
Amran, A., Lee, S.P. and Devi, S.S., 2014. The influence of governance structure and strategic
corporate social responsibility toward sustainability reporting quality. Business Strategy and the
Environment, 23(4), pp.217-235.
Attig, N., El Ghoul, S., Guedhami, O. and Suh, J., 2013. Corporate social responsibility and
credit ratings. Journal of business ethics, 117(4), pp.679-694.
Deng, X., Kang, J.K. and Low, B.S., 2013. Corporate social responsibility and stakeholder value
maximization: Evidence from mergers. Journal of financial Economics, 110(1), pp.87-109.
Doh, J.P., Littell, B. and Quigley, N.R., 2015. CSR and sustainability in emerging markets:
Societal, institutional, and organizational influences. Organizational Dynamics, 44(2), pp.112-
120.
Fontaine, M., 2013. Corporate social responsibility and sustainability: the new bottom
line?. International Journal of Business and Social Science, 4(4).
Khan, A., Muttakin, M.B. and Siddiqui, J., 2013. Corporate governance and corporate social
responsibility disclosures: Evidence from an emerging economy. Journal of business
ethics, 114(2), pp.207-223.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.
Yusoff, H., Kamaruddin, S.H. and Ghani, E.K., 2018. Environmental Reporting Practices of Top
Public Listed Companies: Analyzing Pre-Post Corporate Social Responsibility
Framework. Indonesian Journal of Sustainability Accounting and Management, 2(1), pp.50-64.

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