The Role of Corporate Social Responsibility in the Modern World

This report delves into the critical role of Corporate Social Responsibility (CSR) in the contemporary business environment. It defines CSR as a self-regulated model that promotes societal welfare and emphasizes accountability to stakeholders, including customers, employees, and investors. The report explores how CSR impacts businesses socially, economically, and environmentally, highlighting its role in enhancing brand recognition, boosting sales, and fostering customer loyalty. Examples such as Visa's financial opportunities, Coca-Cola's 5x20 program, and Deloitte's focus on education and sustainability are provided to illustrate the practical benefits of CSR. The report also examines the importance of ethical practices and the negative consequences of failing to adhere to CSR principles, using the Nestle Maggi controversy as a case study. The conclusion emphasizes the increasing significance of CSR in fostering sustainable development and improving brand image.

Role of Corporate Social
Responsibility

EXECUTIVE SUMMERY
This report contain the discussion about corporate social responsibility and its
contribution in the today's world. This argument will be discussed with effective evidences
which required to show in this report.

Table of Contents
EXECUTIVE SUMMERY .............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Corporate social responsibility is the self regulated business model which help the society
for their welfare of social development. For their each activities organization socially
accountable to its stakeholders which included customers, employees, shareholders, government,
investors etc. (Brammer, Jackson and Matten, 2012). It is also called corporate citizenship and it
will impact the business socially, economically, environmentally etc. This report include the role
of corporate social responsibility in the current world along with various example which can
specify that how CSR beneficial for the company.
MAIN BODY
Corporate social responsibility is the obligation of organization towards society or
environment implications. It is a “triple bottom line” approach which required for sustainable
development and it includes social, environmental and economic aspects to be consider. Because
organization use various resources which comes from society for example raw material, human
resources, infrastructure etc. So it is corporates responsibility to pay something back which is in
favour of social or economic development (Servaes and Tamayo, 2013). CSR not only the main
focus for the manager's to improve their business image but also for practitioners for the
development of country.
CSR activities helps in providing better brand acknowledgement which positively impact
the business, increase sales along with customer loyalty, it provide better financial performance
etc. These roles played by the CSR activities which is beneficial for the organization to improve
or enhance their brand image along with productivity. For example: Visa provide financial
opportunities to the individuals for developing their area. Along with this, Coca-cola introduce a
program which is known as 5x20. According to this program company have goals to employing
about 5 million woman in the developing country by 2020 for the role of bottling & distribution
(CSR activities, 2019).
Deloitte company majorly focus on education, employment, environmental sustainability
and animal welfare (Deloitte CSR programs, 2019). These programs provide suitability in the
society where people become skilled and contribute in the country. Deloitte foundation educator
resources provide skills education which helps the people to meet organizational needs.
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Company provide highly qualified professional faculty to develop talent in the individual in area
of audit, advisory tax, consulting etc.
Corporate social responsibility plays important role in the organization because it helps in
attracting potential investors because they are also going to linked with those organization who
have good image in the society. Because when business continuous engage with social activities
than they will get media attention. For example: contribute in the education, generate
employment, provide various training & development program to improve personal or
professional skills etc. Each & every action of business affect the productivity as well as
profitability of organization. So management need to ensure that business follow ethical
practices in order build positive image in front their stakeholders. For example: McDonald's
develop a program of Ronald McDonald House Charity (RMHC) to improve children lives
through supporting them with the help of this scheme. This CSR activity support for the need of
education and physical activity. Company also promote Work Health & Safety in the workplace
for each level of functioning. They use LED lighting to reduce average 7% of energy usage each
year along with company have goals to reduce 50% of wastage by 2020 through recycling their
waste (McDonald's programs for the sustainable development, 2019). These kind of activities
environmentally affect the business and provide sustainable development. It helps in improving
their image in the society which attract more customers as well as investors.
CSR activities comes under the business ethics but organization not follow it in proper
way then it negatively impact the business and Nestle Maggi is the best example for it. It is one
of the biggest brand all over the world where Maggi capture approx 60% of market share. But,
because of quality issues they have to survive a lot and it impact the business in various way. In
2015, Kolkata laboratory found lead in very high quantity and it was around 17.2 parts per
million. Lead amount is more then permissible which impact human body, so after this Maggi
banned in India and it was a huge loss for the company. This controversy affect the Nestle India
in huge manner where sales figure face the drastic fall. Future Group which is biggest
supermarket chain who owns Big Bazaar, they stop selling Maggi in their stores. Along with this
various states stop the product immediately for the further orders (Maggi Controversy, 2019). As
a result, 60% of sale of Maggi will fall because of this controversy and after this Maggi ban in
India. This action affect the business and its product image across the world which reduce their
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revenue. Customer loyalty also break because of this incident and they face financial problems
because investors drain their money from company.
I
llustration 1: Market Share of Maggi, 2019.
Above mention graph represent that after 2015 controversy in Indian will reduce the
market share of Maggi product. Before 2015, market share of Nestle company for this product is
about 72.5% but after Maggi ban is remains only 41.6% in 2016.
Director of Nestle company take necessary actions to again introduce Maggi in the Indian
market and improve their image among the customers and stakeholders. Company rework on
their strategy and develop effective marketing plan where they show quality certificate which
ensure product quality according to national food safety regulation.
Company develop various program to spread awareness regarding safety of food and its
quality which not further harmful for the customers.
CONCLUSION
From the above discussion it has been concluded that corporate social responsibility is
become important or necessary part of the business activities. Because this provide sustainable
development to the society as well as improve brand and product image among the stakeholders.
Organization have to develop their programs according to the requirement of society which
provide them more attraction or benefit as well. It is important for the organization to contribute
in the society because it helps in developing customer loyalty along with brand image.
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REFERENCES
Books & Journals
Brammer, S., Jackson, G. and Matten, D., 2012. Corporate social responsibility and institutional
theory: New perspectives on private governance. Socio-economic review. 10(1). pp.3-
28.
Servaes, H. and Tamayo, A., 2013. The impact of corporate social responsibility on firm value:
The role of customer awareness. Management science. 59(5). pp.1045-1061.
Online
CSR Activities. 2019. [Online]. Available Through:
<https://onlinemasters.ohio.edu/blog/why-corporate-social-responsibility-matters-in-
todays-society/>
Deloitte CSR program. 2019. [Online]. Available Through:
<https://www2.deloitte.com/us/en/pages/about-deloitte/solutions/educator-
resources.html>
Maggi Controversy. 2019. [Online]. Available Through:
<https://www.kotaksecurities.com/ksweb/Meaningful-Minutes/5-ways-Maggi-
controversy-affects-Nestle>
McDonald's programs for the sustainable development. 2019. [Online]. Available Through:
<https://research-methodology.net/overview-of-mcdonalds-csr/>
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