Business Report: Analyzing CSR Importance in Current Market Trends

This report examines the crucial role of Corporate Social Responsibility (CSR) in today's business environment. It defines CSR as a business model that emphasizes a company's social accountability to stakeholders, the public, and itself. The report highlights the growing importance of CSR, driven by increasing public awareness and the need for companies to maintain a positive image. Key concepts discussed include the positive impact of CSR on customer and employee engagement, and the creation of a competitive advantage. The report also explores different types of CSR activities, such as environmental sustainability, ethical business practices, and economic responsibility. The role of CSR in enhancing public image, creating brand awareness, and fostering customer and employee engagement is also examined, along with examples of CSR initiatives by Coca-Cola and Microsoft. The conclusion emphasizes the rising trend of CSR and its importance for companies to invest in societal well-being, as it enhances their global image and aligns with evolving societal expectations.

BUSINESS REPORT

EXECUTIVE SUMMARY
The report is about importance CSR in current market. CSR has become compulsion as
well as essential for company. CSR is defined as corporate social responsibility of company.
This report will cover concepts of CSR policy. The main concepts of CSR are that it increases
greater customer engagements, greater employee engagement and competitive advantage.
Companies are making only profits without thinking about the society. Companies who are
adopting CSR are gaining much recognition in society.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................2
Concept and roles of corporate social responsibility...................................................................2
CONCLUSION ...............................................................................................................................4
REFERENCES ...............................................................................................................................6
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INTRODUCTION
Corporate social responsibility is a business model that assist company to be socially
accountable to its stakeholders, public and itself. CSR is an current issue that every company is
required to consider for its growth (Baile and et.al., 2018). The verge at which people are
becoming aware companies cannot retain a good responsible Image in society. For gaining
reputation in society it has to make investment about in CSR. There are various initiatives that
can be taken by company for the benefit of society. Various companies are undertaking the CSR
projects for their enhancements. With that investment companies are gaining competitive
advantage in market as people prefer companies that are undertaking CSR responsibility. They
are not accepting companies that are avoiding their responsibilities about society. It is essential
for all the companies to perform CSR activities. Business boost their brand by benefiting society.
Present report will discuss role of CSR with practical examples.
Concept and roles of corporate social responsibility
CSR is an important element for every business. It is very broad concept, it depends on
the nature of company. It is a process that how company manage their business operations and
create a positive impact on society (Crane, Matten and Spence, 2019). It determines that business
need to operated ethically and need to be sustainable. It is type of international business
regulation which need to be followed by every firm. CSR activities enhance society,
environment and create a positive brand image in the minds of customers. CSR activities is
beneficial for stakeholders, society, and company itself for making decisions and retain their
interest in organisation. The main purpose of CSR activities is to ensure that company is
operating its business ethically i.e. business consider all human rights, economical, social and
environmental impact. There are 4 types of CSR activities which are as follows:
 Environment sustainability
 Direct philanthropic
 Ethical business practices
 Economic responsibility
There are various roles of CSR activities which are as follows:
 Enhance public image: CSR activities improve public image as customers keep in mind
brand image of business in deciding to buy product or not (El Ghoul, Guedhami and Kim,
2017). It is very essential in building brand image in the market by building strategies and
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implement it. Customers support only those companies which are concerned with welfare
of society, development of community, protecting human rights. It is a way through
which company communicates its brand in market and creates positive impact.
 Creating brand awareness: Companies organise various marketing campaigns in order
to create its brand image and attract customers (Hasan and et.al., 2018). Organising
campaigns gains customer attraction and they become eager to know about the product or
brand to be introduced. Providing free samples and charity will benefit company in
creating awareness among customers, public will recognize the brand. Thus, CSR
activities increase brand awareness and recognition.
 Competitive advantage: CSR activities create competitive advantage for company as
firm stands out from its competitors. Company establishes its image uniquely by
conducting business ethically, protects human rights, develop community, concerned
with welfare of society. Competitive advantage is created by providing products and
services at lower price than competitors. Companies consider environmental laws, health
and safety law in operating their business which creates value to customers (Masa’deh
and et.al., 2018).
 Increase customer engagement: Through CSR activities business shares their culture
and operations, customers become familiar with the organization and engage in
purchasing products and services. Companies post their CSR activities and achievements
on social media, companies efforts are noticed by customers and they engage through
social media platforms. Customers engage with the brand which help company in
creating loyal customers base (McWilliams, 2015).
 Employee engagement: Companies also need to make sure that employees are also
satisfied with their job. Company need to involve employees in all the CSR programs,
business operations and decision making so that they retain in the company and generate
interest in their job. HR of company need to motivate employees by creating a healthy
environment, provide training, hire new employees and retain old employees. If
employees are involved in business operations and CSR programs they feel happy and
engage in business by performing better and increase profitability of business (Mishra
and Modi, 2016).
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 Society welfare: Companies involve in growing society by developing infrastructure,
educating children who cannot afford. Organizations who think for the society will be
create a positive brand image, create loyal customers. Company perform their business
ethically and develop community (Saeidi and et.al., 2015).
EXAMPLES OF CSR ACTIVITIES
CSR of Coca Cola
Coca Cola has gained image in market as it is spending towards CSR policy. Company is
spending 2 percent of its average net profits. Contribution is made equal to net profits of three
years of company. Profits that arise out of CSR expenditure are not to be made part of business
profits, therefore it is reinvesting its CSR revenues for society. Company is making proposals for
CSR projects that company is going to incur in presently year. It has a separate CSR committee
for listing out plans for year related to CSR (Hasan and et.al., 2018). Company has opened
various charitable trust for people. Company has made various expenditure for development of
society. It has developed transparency in monitoring mechanism for different CSR project and
program that are undertaken by company. Programs shows that company is taking care of
resources of company.
Because of CSR projects company has gained a positive image of company. It has
developed in the minds of people that company is aware about the resources of the company
that it is using for its company. People prefer companies that are taking care of society at whole
for resources it is using for its production.
CSR investment by Microsoft
company has earned a second position in CSR score with a RepTrak of 74.1. Microsoft is
spending huge amount over its CSR activities (El Ghoul, Guedhami and Kim, 2017). The main
focus of company is to increase education in society. Education is a global issue and it is taking
considerable steps for improving education level of society. Microsoft has opened various school
colleges and schools for poor people who cannot afford education. It is operating as an open
source platform for fostering perceptions about good citizenship as well as for good governance.
Company has made considerable investments for empowering people so that they can be helped
in achieving things. It is also investing for enhancing economic condition of people (Crane,
Matten and Spence, 2019).
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CONCLUSION
From above study it is concluded that CSR is rising trend. Apart from trend it is also
important for companies to take their responsibilities related to society. Every company should
know that they are using resources of society, so it is their responsibility that they make
investment for society. CSR is helping companies to grow their worldwide image that they are
taking responsibility of society. People are also becoming vigilant about companies that are
making investments for CSR. Society is preferring companies that are investing in CSR.
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REFERENCES
Books and journals
Bailey, M. and et.al., 2018. The role of corporate social responsibility in creating a Seussian
world of seafood sustainability. Fish and Fisheries. 19(5). pp.782-790.
Crane, A., Matten, D. and Spence, L. eds., 2019. Corporate social responsibility: Readings and
cases in a global context. Routledge.
El Ghoul, S., Guedhami, O. and Kim, Y., 2017. Country-level institutions, firm value, and the
role of corporate social responsibility initiatives. Journal of International Business
Studies. 48(3). pp.360-385.
Hasan, I. and et.al., 2018. Corporate social responsibility and firm financial performance: The
mediating role of productivity. Journal of Business Ethics. 149(3). pp.671-688.
Masa’deh, R. and et.al., 2018. The role of corporate social responsibility in enhancing firm
performance from the perspective of IT employees in Jordanian banking sector: The
mediating effect of transformational leadership. Modern Applied Science. 12(7). pp.1-26.
McWilliams, A., 2015. Corporate social responsibility. Wiley encyclopedia of management.
pp.1-4.
Mishra, S. and Modi, S. B., 2016. Corporate social responsibility and shareholder wealth: The
role of marketing capability. Journal of Marketing. 80(1). pp.26-46.
Saeidi, S. P. and et.al., 2015. How does corporate social responsibility contribute to firm
financial performance? The mediating role of competitive advantage, reputation, and
customer satisfaction. Journal of business research. 68(2). pp.341-350.
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