The Role of CSR in the Modern Business Environment - HI5013

This report delves into the critical role of Corporate Social Responsibility (CSR) in the contemporary business landscape. It begins with an executive summary and table of contents, setting the stage for an exploration of CSR's impact. The introduction defines CSR and highlights its significance for companies, stakeholders, and the broader community. The report then examines CSR's role in enhancing labor policies, promoting environmental sustainability, increasing customer involvement, and boosting brand image. The report provides practical examples from companies such as Nestle, Netflix, Target, Ford, and BMW to illustrate these points. The conclusion emphasizes the importance of CSR for business success and differentiation in today's competitive market. The report is well-structured, includes a comprehensive reference list, and offers valuable insights into the practical application and benefits of CSR.

Running head: CSR
Role of
Corporate
Social
Responsibili
ty

CSR
Executive Summary
The report highlights the details related to the role played by CSR in today’s business world. The
paper discuss about CSR with some practical examples of the company. In the recent business
environment, it is necessary for the companies to consider the approach related with CSR as it
helps in maintaining the brand image in the market. The concept of CSR directly affects the
perception level of the customers towards the products and services offered in the market. CSR
approach is concerned with the overall accountability of the firms and also their stakeholders.
Therefore, this paper will assist the reader in understanding the role of CSR in relation with the
different practical examples.
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Table of Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................2
Role of CSR in today’s world..........................................................................................................2
Conclusion.......................................................................................................................................4
References........................................................................................................................................5
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Introduction
Corporate social responsibility (CSR) is considered as the wide concept that is considered to
elaborate the efforts of the organization to improve the society. These efforts can be related to
donating money or it also implies on implementing the environmental friendly policies in the
organization. Corporate social responsibility is necessary for the companies, nonprofits and also
for the workers who manage the routine activities in the workplace. If the companies in the
present business world consider the CSR approach then it helps in building a sense of trust and
this also maintains relations with the stakeholders (Voegtlin and Greenwood, 2016).
The different CSR policies considered by the companies can aim at boosting the satisfaction
level of the customers. The concept of CSR is necessary for the companies as it benefits the
different communities. There are many large firms who consider social projects and also donate
tons of money or offer the products and services for free. The companies only take these
initiatives so that it could be easy to face the global issues such as pollution and global warming.
For example: Project Jagriti is one of the projects which are considered by the Nestle company.
This project encourages good nutrition and create healthy environment for the people (Nestle,
2019). So, it can be analyzed that majority of the organizations consider the approach related
with CSR as it not only assist to grow but also boost the satisfaction level of the customers
towards the products and services offered in the market.
Role of CSR in today’s world
CSR is known as one of the popular approaches that majority of the large firms are considering
this approach to boost their market share. One of the major roles played by CSR is concerned
with improving the labor policies and to embrace the fair trade. By considering the CSR
approach it would be easy to boost the satisfaction level of the customers towards the services
and products offered in the market. The labor policies are improved which means it leads to the
overall satisfaction level of the workers towards the assigned work (Kolk, 2016). For example:
Netflix is one of the largest firm that provides their workers 52 weeks of paid parental leave and
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it is applied for both the parents. The company also provides unlimited vacation time to their
employees which help in boosting the retention rate of the workers. It is analyzed that if
companies consider the approach related to CSR then it would be easy to enhance the
engagement level of the workers which can also result in overall growth of the organization
(Netflix, 2019).
CSR also plays a major role in changing the corporate policies that benefit the environment. If
firms consider the approach related to corporate social responsibility then it emphasizes on
keeping the surrounding clean which result in improved environment. For example: Target
company has promised to open new facilities that elected to consider ammonia that modulate the
temperature. This initiative is considered as hydro- fluro carbon is considered in cold storage
facilities and it is prevalent GHG’s in atmosphere. So, by considering the approach concerned
with CSR, the company helps in maintaining the environment.
Involvement of the customers is also necessary for attaining the set goals of the business. If the
customers are not happy or satisfied with the company then it can lead to loss and can also
impact the goodwill of the firm. CSR also has an essential role in boosting the involvement of
the customers towards the products and services. If the company considers the initiative to
maintain the welfare of the society, then it creates a positive mindset of the customers (Jamali
and Karam, 2018). For example: Ford Motor company has improved their environmental
performance. To minimize the GHG emissions, the company developed EcoBoost engine and
also the company provided with the 13 new electric vehicle models which has created positive
mindset of the customers. This has helped the company in enhancing the overall sales of the
company as customers are attracted towards the products and services offered in the market. So,
it can be stated that CSR plays an important role in boosting the involvement of the customers
towards the products and services offered by the company (Ford, 2019).
CSR approach if considered by the companies can help in boosting the brand image on the global
platform. Goodwill is one of the essential factors that assist the companies in attaining the set
market area network. If company is able to maintain their goodwill in the market then it can lead
to higher profitability and success ratio in the competitive business world. One of the major
reasons behind considering CSR approach relates with boosting the goodwill in the eyes of the
customers (Spence, 2016). For example: BMW is one of the most socially responsible
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organizations in this automotive sector. The company has set the high bars by assisting over one
million individuals by 2020. They have created the program such as “The Schools environmental
education development project” that has boosted the awareness of social and environmental
problems. The company has achieved the success by considering the approach relates to CSR.
BMW has showcased themselves as an example in front of the customers as they keep balance
between good business models and also give assistance to the social causes (BMW, 2019).
Therefore, it can be stated that CSR plays an important role in boosting the success ratio and
profit margin of the firms in the highly competitive business world. It is necessary for the
organizations to focus on corporate social responsibility as it provides a competitive edge in
relation to the competitors present in the market (El Ghoul, Guedhami and Kim, 2017).
Conclusion
By analyzing the practical examples and concept of corporate social responsibility it can be said
that in the recent market, it is essential for the firms to consider as it helps in considering the
right direction which is beneficial for the overall growth and success in the large market area
network. If CSR approach is not considered then it can create a major issue for the firms to
differentiate themselves from the competitors who are present in the market. Therefore, in the
present environment, it is necessary for the firms to take into consideration different initiatives
that can lead to high success ratio and can boost the brand image among the competitors. So,
CSR plays a major role in boosting the success of the businesses present in today’s business
world.
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References
BMW, 2019.BMW Group. [ONLINE] Available from:
http://archive.gbchealth.org/member_profiles/1457/. [Accessed on 21 August, 2019].
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.
Ford, 2019. Ford’s Impressive Sustainability Strategy. [ONLINE] Available from:
https://hbr.org/2011/01/fords-impressive-sustainabilit. [Accessed on 21 August, 2019].
Jamali, D. and Karam, C., 2018. Corporate social responsibility in developing countries as an
emerging field of study. International Journal of Management Reviews, 20(1), pp.32-61.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1), pp.23-34.
Nestle, 2019.Project jagriti. [ONLINE] Available from: https://www.nestle.in/csv/healthier-
lives/nutrition-education/project-jagriti. [Accessed on 21 August, 2019].
Netflix, 2019.Csr. [ONLINE] Available from:
https://www.csrhub.com/CSR_and_sustainability_information/Netflix-Inc. [Accessed on 21
August, 2019].
Spence, L.J., 2016. Small business social responsibility: Expanding core CSR theory. Business &
Society, 55(1), pp.23-55.
Voegtlin, C. and Greenwood, M., 2016. Corporate social responsibility and human resource
management: A systematic review and conceptual analysis. Human Resource Management
Review, 26(3), pp.181-197.
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