A Literature Review: Importance of Corporate Social Responsibilities

This literature review examines the critical importance of Corporate Social Responsibility (CSR) in the global business environment. It defines CSR as the relationship between a company and society, emphasizing ethical responsibilities towards stakeholders, including employees, shareholders, and the community. The review highlights the impact of technological advancements and increased competition, which intensify the need for CSR. Key principles of CSR, such as sustainability, accountability, and transparency, are discussed, along with examples of companies like Coca-Cola and Tata Group implementing CSR initiatives. The review concludes that CSR adds value to businesses, enhances brand awareness, reduces production costs, and provides a sustainable competitive advantage. The paper references several academic sources to support its arguments, providing a comprehensive overview of CSR's significance.

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IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITIES
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1IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITIES
Topic
The topic of this paper is the importance of corporate social responsibilities in global
business environment. The literature review will be based on this topic.
Literature Review
Meaning of Corporate Social Responsibilities
The term corporate social responsibility is playing an integral part in the global business
environment currently. It helps to underst6and the relationship between the governments of the
nations where an organization operates their business, multinational organizations and individual
citizens. In other words, this term signifies the relationship between a company and the society
where they are performing their business operations (Grayson, D. and Hodges 2017). It also
identifies the relationship between a business house and its stakeholders. In simple words, it can
be said that the responsibilities that the business entities need to perform in the society where
they are performing their daily business operations are regarded as corporate social
responsibilities. It helps to improve the standard of living of the society and to safeguard the
standard of living for the future generations. It helps the management to become socially
accountable to all the people who are associated with the operations of the business, which
includes the employees, the stakeholders and the society where they are performing their daily
business operations. The responsibilities need to be performed ethically and following the rules
and regulations regarding the corporate social responsibilities. The responsibility includes
financial, economic and environment responsibilities, as it is mandatory for most of the
multinational business organizations to create higher standards of living for the future

2IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITIES
generations, and this is can be regarded as one of the mandatory responsibility that an
organization needs to perform (Martínez, Fernández and Fernández 2016).
Global Business Environment
It can be stated in this context that advancement in the field of technology has increased
the competition between the competitions between the companies. Innovative approaches are
used and followed in the overall process of manufacturing, production, marketing and selling of
different products and services in the global market places. Multinational companies have their
presence in many regions across the world, and they need to perform certain tasks towards the
societies or communities where they perform their business operations. Different regions possess
different requirements and necessities regarding selling of the products and services that are
manufactured and sold by the management of houses business entities. This advancement
possess both positive and negative impacts on the business operations, and intensifies the
importance of performing activities related to corporate social responsibilities. The advancement
in the field of technology increases the importance of performing corporate social responsibilities
in the communities where they are performing their business operations (Mishra and Mohanty
2013).
Importance of Corporate Social Responsibilities in Global Business Environment
Business corporations are part of the societies where they perform their business
operations. So, it can be stated in this context that it forms a part of the duty of the management
and owners of these business entities to give back something to the society where they are
preforming their duties. Corporate social responsibilities include three major principles, which
are sustainability, accountability and transparency. Though performing corporate social
responsibilities incurs amount that need to be involved in the overall budget of the companies,

3IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITIES
and it has become mandatory for most of the nations to perform different corporate social
responsibilities in the societies where they are performing. The major importance of corporate
social responsibilities is safeguarding the environment where the organizations are performing
their business operations (Tai and Chuang 2014).
For example, the organization of Coca-Cola has started the initiative of 5by20 in order to
empower the women across the world in the year 2010. In another example, the business entity
of Tata Group runs a program related to corporate social responsibilities which is known as Tata
STRIVE that helps to equip the societies with technology, information and capacity in order to
accomplish improved education, health and livelihood outcomes. Performing of corporate social
responsibilities helps to add value to the businesses that are performed by a company in
respective market places. The overall success depends on the amount of activities related to
corporate social responsibilities are performed by the management of the business entities. It also
helps to engage the society more to the management of the company and make them aware about
the type of business operations that are performed by them. The brand awareness also gets
enhanced along with the recognition of the products and services that are sold in the respective
market places. The production costs also gets decreased to perform sustainable business
approaches, like spending less in the overall packaging of the products. Sustainable competitive
advantage are also gained by respective organizations against the competitors of a particular
company in the context of global business environment (Rexhepi, Kurtishi and Bexheti 2013).

4IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITIES
Reference
(2020). [Ebook]. Retrieved from https://www.mdos.si/wp-content/uploads/2018/04/defining-corporate-
social-responsibility.pdf
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Martínez, J.B., Fernández, M.L. and Fernández, P.M.R., 2016. Corporate social responsibility:
Evolution through institutional and stakeholder perspectives. European journal of management
and business economics, 25(1), pp.8-14.
Mishra, M. and Mohanty, S., 2013. Impact of Corporate Social Responsibility Communication
on Corporate Brand Personality Assessment. IUP Journal of Management Research, 12(4).
Rexhepi, G., Kurtishi, S. and Bexheti, G., 2013. Corporate social responsibility (CSR) and
innovation the drivers of business growth. Procedia-Social and Behavioral Sciences, 75(3),
pp.532-541.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.