Social Responsibility of Business

This essay analyzes the statement that the social responsibility of business is to increase its profits. It discusses the concept of corporate social responsibility and its various aspects, such as economic, legal, ethical, and philanthropic responsibilities. The essay also explores the impact of corporate social responsibility on brand image, customer engagement, and market value. Examples of successful corporate social responsibility initiatives are provided, highlighting the benefits of such practices for businesses.

Social Responsibility of
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
The social responsibility of business is to increase its profits.........................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Corporate social responsibility can be described as the practices that is performed by
organisation in order to provide benefits to society and environment. There are various resources
used by company from society in order to conduct business practices (Crane, Matten and Spence,
2019). It is essential responsibility of organisation to repay to society and environment by
providing different advantages to citizen of society and environment. This essay includes critical
analysis of the statement that is “social responsibility of business is to increase its profits”. Apart
form this social responsibility behaviour of business has been analysed in this report.
The social responsibility of business is to increase its profits
Social responsibility is considered as ethical theory at which an individual is accountable
for the fulfilling its civic duties as well as it also includes actions of a person that must be
beneficial for the society. This is so because that will help in maintaining balance among the
welfare of society and environment and growth of economy. When social responsibility is
applied to the business it is named as the corporate social responsibility, which is determined as
the types of international private business self regulation which aim is to contribute in the
societal goals of activist, philanthropic, nature of doing charity by engaging in or support
volunteering or by conducting ethics oriented practices. The corporate social responsibility of a
company is based on several aspects such as environmental responsibility, economic
responsibility, human rights responsibility and philanthropic responsibility. There are numbers of
examples of corporate social responsibility conducted by a company such as minimizing carbon
footprints, helping local school and hospitals, charity and so on (Hu, Zhang and Yan, 2020).
The social responsibility of business is to increase its profits. There are different function
and activities conducted by organisation for full filling its social responsibility (Jamali and
Karam, 2018). This will lead to provide several benefits to business and it will enhance brand
image of organisation. In order to earn more profits and increase sales of business, it is crucial
for company to carry out different social responsibility task and practices that is significant for
improving business. Social responsibility of business will lead to improve the profits of business
as through this company is able to influence large number of customers towards business.
Through this sales of product will be increase and business profitability will be automatically
increase (BONDARUK and BONDARUK, 2020). There are different theories of social
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responsibility that is significant for providing guidance and direction to carry out social
responsibility. Corporate social responsibility theory includes four major elements such as
economic responsibility, legal responsibility, ethical responsibility and philanthropic
responsibility. The economic responsibility of business includes to make money. Organisation
that does not make profits are consider as doomed to perish in the modern market economy.
Earning more and more profits by performing business practices is one of the crucial aim of
various business (Albuquerque Koskinen and Zhang, 2019). Company is correctly managing
business operations with the motive of earning more profits and enhancing business. Legal
responsibility of organisation consist of following rules and regulation that is developed by
government. It is essential that organisation is correctly adhere the guidelines and direction while
conducting business practices. If company fails to follow the rules and regulation of government
then it may have to deal issues. Following of rules will assist in smoothly conducting business
practices as well as enhancing profitability of business. Ethical responsibility of organisation
taking correct and accurate decision in order to provide benefits to society and business. It is
essential for business to take correct and accurate decision not only to increase profits but also
considering the safety of business. Ethical responsibility of organisation includes maintaining
safety and security of customers, stakeholder and society while carry out business operations.
(Kivarina and et.al., 2020) Philanthropic responsibility includes the contribution of business to
social projects and conduct various activities for increasing business operations. This type of
responsibility consist of performing different volunteer activities in order to meet with the issues
and problems of society. Voluntary practices of business will lead to improve the brand image of
company is market area.
Corporate social responsibility is significant for improving the impact of brand in public and it
will lead to develop strong relationship with customers. Through this organisation will be able to
increase the brand awareness and recognition in the market. This will assist in attracting more
customers towards business as well as improve the sales (Aguinis and Glavas, 2019). By
conducting corporate social responsibility organisation will be able to reduce the cost of business
and improve awareness about the products and services of company. This will lead to gain
competitive advantages over other rival companies along with this increase the market area. All
of these factors are effective for increasing the profits and sales of the business as well as attain
desired goals. Social responsibility is consider important for business as it will directly or
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indirectly increase the profitability of business as well as improve overall performing of
organisation.
There are some other aspects of social responsibility that is significant for understanding
that corporate social responsibility is not only for earning higher profits but it is essential for
providing benefits and advantages to society and its citizens. The motive of conducting corporate
social responsibility includes providing greater opportunities of employees. It is moral and
ethical responsibility of business to pay back to society for using its resources for conducting
business task (Boccia and Sarnacchiaro, 2018). It is crucial for organisation to carry out
different practices such as providing more opportunities to employees and people of society so
that they can significant full fill their needs. By considering individual needs and society
demand organisation will be able to boost it the overall relationship with the. This is an effective
chance of company for showing commitment to society and its citizens. This types of practices
are not only done with the motive of making money but also full filling human rights. This will
assist in attracting capable and potential employees with in the company as well as retaining
talent employees with in the business for longer terms. It is essential that organisation is thinking
beyond profits making as well as considering employee engagement practices. Corporate social
responsibility of will leas to sustainability system of business and improving the level of
customer engagement with the company. This is significant for considering the view point of
customers while conducting business practices as well as enhancing organisational practices
(Makarova and et.al., 2020).
The triple bottom line is another social responsibility theory that includes corporate
leaders tabulates bottom line results and does not only consider on economic terms (Fanti and
Buccella, 2020). This theory significantly focus on the other terms that company should effective
such as social realm, respect to environment and social welfare etc (Yuan and et.al, 2020). This
model is significant for providing direction to maintaining the efforts of business in order to
sustainability of economic and ethical aspects. This theory of corporate social responsibility is
developed by John Elkington in year 1994. The triple bottom line model includes the different
elements such as economically, socially as well as environmentally. Economic sustainability is
significant for describe as the value or importance to long term financial solidity of business.
Through this it has been analysed that company needs to focus on the long term benefits rather
then short term profitability goals. Social sustainability includes the values and importance of the
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people or customers. Consideration of the values of people will lead to successfully improve the
brand image of company and increase public relationship. As per Freeman`s theory of CSR
business should fairly carry out business practices as it will lead to increase the opportunities of
organisation and assist in earning more wealth. Environment sustainability is majorly related to
natural resources that consist of oil fuelling, clean air we breath and water to drink.
Around the world there are numbers of successful examples of brand which are
conducting corporate social responsibility such as corporate social responsibility conducted by
Johnson & Johnson as they highly focused on minimizing its impact on planet for the three
decades (Muttakin, Mihret and Khan, 2018). They initiate range by leveraging power of wind in
order to provide safe water to communities around the world. In addition to this they also
generate 35 percent energy options from the renewable sources. In addition to this another
example is of Coca Cola their large fleet of delivery trucks contributes about 3.7 million metric
tons of greenhouses gases around the world (Yuan, Lu and Yu, Y., 2020). They mainly conduct
major changes to its supply chain practices in new alternatively fueled trucks by this they able to
create 25 percent reduction in its carbon footprint by 2020. Another big example of corporate
social responsibility conducted by TOMS, their mission is to donate a pair of shoes on every sell
of pair as result of that they donate over 60 million pairs of shoes to the children who needed it
(Hernández, Yañez-Araque and Moreno-García, 2020). In addition to this, their profit is mainly
used to assist visually impaired by rendering prescription medical and glasses treatment, provide
clean and safe drinking water as well as they build businesses in creating countries to develop
jobs. These are the some examples which showcase the social responsibility behaviour of a firm
as in order to help society they change or modify their business operations as well as functions.
In addition to this, these firms also considered several other aspects while conducting CSR
activities such as they ensure fulfilment of all requirement related to economic, ethics and legal
perspective (Govindan, Shankar and Kannan, 2018). These organisations mainly showcase social
responsibility behaviour because through that they able to attain numbers of benefits such as they
able to enhance their market goodwill and market value. Moreover, they also able to enhance
their sales as well as profitability in successful manner.
CONCLUSION
From the above essay it as been analysed that corporate social responsibility play crucial
role for enhancing business profits. It is important for company to consider the ethics and moral
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while performing business task in most effective manner. There are different social
responsibilities that should be performed by business in order to successfully and accurately
conducting organisation practices. Corporate social responsibilities will lead to increase the
image of company in market area as well as providing various benefits to citizen, society and
environment. Apart from this positive social behaviour of organisation will help in increasing
brand image of company as well as attracting more customers towards business to attain more
profits.
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REFERENCES
Books and Journals
Crane, A., Matten, D. and Spence, L. eds., (2019). Corporate social responsibility: Readings and
cases in a global context. Routledge.
Jamali, D. and Karam, C., (20180. Corporate social responsibility in developing countries as an
emerging field of study. International Journal of Management Reviews, 20(1), pp.32-
61.
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.
Aguinis, H. and Glavas, A., (2019). On corporate social responsibility, sensemaking, and the
search for meaningfulness through work. Journal of management, 45(3), pp.1057-1086.
Boccia, F. and Sarnacchiaro, P., (2018). The impact of corporate social responsibility on
consumer preference: A structural equation analysis. Corporate Social Responsibility
and Environmental Management, 25(2), pp.151-163.
Yuan, Y., Lu, L.Y., Tian, G. and Yu, Y., (2020). Business strategy and corporate social
responsibility. Journal of Business Ethics, 162(2), pp.359-377.
Muttakin, M.B., Mihret, D.G. and Khan, A., (2018). Corporate political connection and
corporate social responsibility disclosures. Accounting, Auditing & Accountability
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Govindan, K., Shankar, M. and Kannan, D., (2018). Supplier selection based on corporate social
responsibility practices. International Journal of Production Economics, 200, pp.353-
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Walzel, S., Robertson, J. and Anagnostopoulos, C., (2018). Corporate social responsibility in
professional team sports organizations: An integrative review. Journal of Sport
Management, 32(6), pp.511-530.
De Roeck, K. and Maon, F., (2018). Building the theoretical puzzle of employees’ reactions to
corporate social responsibility: An integrative conceptual framework and research
agenda. Journal of Business Ethics, 149(3), pp.609-625.
Ortiz-Avram, D., Domnanovich, J., Kronenberg, C. and Scholz, M., (2018). Exploring the
integration of corporate social responsibility into the strategies of small-and medium-
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sized enterprises: A systematic literature review. Journal of Cleaner Production, 201,
pp.254-271.
Hu, B., Zhang, T. and Yan, S., (2020). How corporate social responsibility influences business
model innovation: The mediating role of organizational
legitimacy. Sustainability, 12(7), p.2667.
BONDARUK, Т. and BONDARUK, І., (2020). The Economic Nature of the Organizational and
Economic Mechanism for Corporate Social Responsibility of Business. Науковий
вісник Національної академії статистики, обліку та аудиту, (1-2), pp.58-65.
Kivarina, M.V. and et.al., (2020). Economic Growth Humanization: Responsibility of Business
and Social Entrepreneurship. Calitatea, 21(176), pp.16-21.
Makarova, L., and et.al., (2020), May. Corporate Social Responsibility as a Non-Functional
Norm: Its Nature and Formation Factor. In International Conference on Economics,
Management and Technologies 2020 (ICEMT 2020) (pp. 166-169). Atlantis Press.
Fanti, L. and Buccella, D., (2020). Pareto-Superiority of Corporate Social Responsibility in
Unionised Industries. Arthaniti: Journal of Economic Theory and Practice, 19(2),
pp.131-150.
Yuan, Y., Lu, L.Y., Tian, G. and Yu, Y., (2020). Business strategy and corporate social
responsibility. Journal of Business Ethics, 162(2), pp.359-377.
Hernández, J.P.S.I., Yañez-Araque, B. and Moreno-García, J., (2020). Moderating effect of firm
size on the influence of corporate social responsibility in the economic performance of
micro-, small-and medium-sized enterprises. Technological Forecasting and Social
Change, 151, p.119774.
Kumar, A. and et.al., (2020). Evaluating sustainable drivers for social responsibility in the
context of ready-made garments supply chain. Journal of Cleaner Production, 248,
p.119231.
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