Corporate Social Responsibility: A Comprehensive Overview

This essay provides a comprehensive analysis of Corporate Social Responsibility (CSR), emphasizing the increasing importance of businesses contributing to society. It explores the definition of CSR, its significance in balancing economic growth, environmental protection, and social welfare, and the role of international regulations. The essay discusses the responsibilities of companies and their boards of directors in implementing CSR policies, including economic, ethical, philanthropic, and environmental aspects. It highlights the benefits of CSR, such as improving a company's image and fostering sustainability, and examines real-world examples like BP's responses to the Deepwater Horizon oil spill. The analysis covers the economic effects, societal welfare, environmental issues, and stakeholder benefits of CSR. The essay concludes that CSR is a crucial business strategy for growth and positive brand image, emphasizing its unique contributions at the corporate level and its role in promoting social responsibility.

RUNNING HEAD: Corporate social responsibilities 1
Corporate social responsibilities

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With the increasing ramified economic growth and complex business structure, each and
every business should indulged in discharging their corporate social responsibilities in
determined approach. This is the act to deliver back to society what is taken by the organization
from society at large. Social responsibility, in connection to individual persons shows the act of
the individual person who work for the welfare of the society. It maintains the balance between
environment protection and economic growth as well as society’s welfare. Similarly, CSR or
Corporate Social Responsibility is the obligations for the companies to complete their social
responsibility by doing acts for the welfare of the society. Some specified eligible companies are
required to apply corporate social responsibility policies and activities for improvement of the
society and the environment (Tran, 2018).However, with the change in environmental factors
and CSR needs in society, international bodies have passed CSR rules and regulations which
must be complied by the companies on domestic and internal level with a view to maintain
sustainability of their business. It is the duty of the board of directors of the company to
implement the policies of the CSR committees. All eligible companies who fall in the definition
of the CSR policies require to constitute a committees who work on this behalf. It is the
responsibility statement of the company to implement the policies of CSR committees. It makes
them accountable for the work done and its impact on the environment. The gist of corporate
social responsibility reckon in corporate, environmental, ethical, philanthropic as well as
economic responsibilities (Poussenkova, et al. 2016). The corporate social responsibility policies
make the environment better and built up the living style of every person by spending in the
welfare of the society. There are variety of possibility when a company take initiative to make
better society and working for the society may grow easiest and fastest comparison to other
companies (Schrempf-Stirling, Palazzo and Phillips, 2016).

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The purport of corporate social responsibility is to aside the plummet of government on
responsibility of social services. Sustainability concept is the wider concept it the relationship
between society, economy and environment. Environment protection is the main and center
motive of the CSR policy. It indicates that need of present generation from the environmental
resource should be completed without compromising resource for future generation. The
principle of CSR policy is that development of technologies and social techniques but at the
same time natural resources for upcoming generation are not depraved. The organization must
work for all like people, planet and profit. If an organization does all there act for those three
then the no other binding is required by the government to the companies (Amao, 2008).
Sustainability makes and maintains the situation where existence of both humans and
nature fulfill the social, economic and environmental requirements. A carbon footprint in a
business is the requirement of carbon which fulfill the need to conduct such business. CSR
policy is regulated to maintain such carbon footprint which are highly consume by most of the
industries. It is an assessment of impact of a product during its life from raw material to final
disposal of such product. However, there are several companies such as GE Capital, Woolworth,
Wesfarmers and BP Billiton that have followed effective CSR policies and frameworks. These
companies contribute at least 5 % of their net average five years earning in CSR activities with a
view to provide benefits to society. BP Billiton installed greenhouse gas emission system with a
view to reduce the impact of hazardous substance on society (Joutsenvirta and Vaara, 2015).
There are many CSR activities which may implement by the organization. Deracinate hunger and
poverty, promoting good health, promoting education and gender equality, built up homes for old
adults and orphans, ensure environmental sustainability and human welfare. Also it is the duty of
the government to make amendments time to time whenever it feels required by the government.

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CSR policy is for social, economic and environmental by which all the sustainable advantage
fulfills (Suliman, Al-Khatib and Thomas, 2016).
Few times before company’s only responsibility is to perform well and makes more and
more profit for its stakeholders. That time many industries only work to make profits and by the
environmental issues were neglected. In that time increasingly uses of carbon footprint become
common to the industries. The day when CSR comes to implement most of the organization of
that but now it is very much favorable to the market. It also improves the image of the
organization. Corporate social responsibility is inclusion of social, economic and environmental
consideration. The concept of CSR was first introduce in 1953 by Howard Bowen (Swaen,
Demoulin and Pauwels-Delassus, 2017).
There is some amplitude of corporate social responsibility which are as follows:
 Economic effects:
This shows the effects of the policies of the CSR on the Enterprises such as GE Capital,
Woolworth, Wesfarmers and BP Billiton. Although there is no cost to occur for implement CSR
policy but it becomes impossible for organizations to set aside the importance of this. It is
balance of making profit as well as maintain the welfare of company at large (Cheng, Ioannou,
and Serafeim, 2014).
 Society Welfare:
This involves the relationship between the society and business persons. It is the duty of
the promoters of GE Capital, Woolworth, Wesfarmers and BP Billiton to do their work for the
welfare of the society and give them profit of that. This may built the lifestyle of society and

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provide them fare advantage like paying inhabitable wages (van den Heuvel, Soeters, and
Gössling, 2014).
 Environmental issues:
The environmental issues which most of the time comes to the way of the business. The
protection of the environment as well as economical use of environment benefits. The main
motive of implementing CSR activities by GE Capital, Woolworth, Wesfarmers and BP Billiton
is to follow practices that could benefits and other advantages while using produce and use
recycled products (Mayo, et al.2016).
 Stakeholders Benefit:
Stakeholders are the people who directly connected with the company which includes
suppliers, employees and members of the company. Therefore, it is considered that GE Capital,
Woolworth, Wesfarmers and BP Billiton needs to provide best level of benefits to their
stakeholders for the betterment of society. The company should also take proper steps for the
benefit of the stakeholders. There is included following stakeholders like customers, suppliers,
employees, investors and government (Fodor and Stowe, 2015).
The real life example could be taken from the BP responses on its deep water horizon oil
spill. After following CSR practice, BP installed various eco system and other greenhouse gas
emission program to reduce the negative impacts of the hazardous products and substance in
market. After evaluating the annual report of company, it is observed that BP has invested more
than AUD $ 50 million while installing eco system and other greenhouse gas emission program.

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It is also observed that if BP had installed this eco system and other greenhouse gas emission
program then it could have stopped the negative impact of the deep water horizon oil spill
incident at large. This deep water horizon oil spill had great impact on the people who were
living around the spill. Furthermore, many employees and workers had to die because of this
spill. Therefore, it could be inferred that if companies follow proper level of CSR practices in
their value chain activities then it would not only reduce the sustainability of business but also
increase the overall brand image in the market.
After evaluating all the details and imperative study on the CSR it can be concluded as
business strategy which helps to grow the business and make good image of the company in
domestic and international market. CSR provisions are unique to corporate level and its
uniqueness develop the society. It is like government invasion to corporate companies to oblige
them to perform the social duties. The doubts are clear about the corporate social responsibility
policies that it is just not the responsibilities of the companies to do kind work but also obligation
that rectify its act by which environment has been harmed. The concept of CSR is as simple is
that if any business instead of only making profits works for the benefit of the society also then
such business loan last survive otherwise it fails to outlast. Some of the time there may some
negative effects of CSR policy that if it is binding on newly incorporated company then it may
make some loss to implement CSR policy. The synopsis of corporate social responsibility
cannot be aside that it involves many advantages with growing economy. This may take few
steps or time to properly implement this policy.

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