Analyzing the Strategic Importance of Corporate Social Responsibility

This essay provides an overview of Corporate Social Responsibility (CSR) as a management concept integrating social and environmental concerns into business operations. It highlights the benefits of CSR, including improved brand image, stronger employee relations, and increased customer loyalty. The essay discusses various categories of CSR, such as environmental sustainability, philanthropy, ethical labor practices, and volunteering. It also examines how CSR impacts different domains, including supply chain management, economic performance, and marketing strategies. The analysis concludes that CSR is crucial for businesses aiming to contribute positively to society and the environment while achieving financial success. Desklib offers this solution and many more solved assignments for students.

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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................7
Books and Journals:....................................................................................................................7

INTRODUCTION
The term Corporate Social Responsibility is a wider concept which can take different
forms depending on the organisation and industry. CSR is a management concept where
organizations combine environmental and social concerns in their company's interactions and
operations with their stakeholders (Afsharipour, A., 2018). The chief goal of CSR is to give back
to the society, deliver positive social worth and take part in philanthropic reasons. In order to
make a difference, many businesses turn into CSR and create a positive brand image in the
community.
MAIN BODY
Corporate Social Responsibility is a self-regulating model of business that assists
company to be socially responsible to itself, to public and its stakeholders as well. It makes
conscious of the kind of affects that they are having on the all the features of community
including economic, social and environmental. When a company is engage in CSR that means
that are operating and interacting in such a ways to improve the society as well as highly focused
on environment instead of providing negative impacts to them. Through various CSR programs,
volunteer efforts and philanthropy, many companies benefits the community or society and to
enhance the brand image also. As CSR is vital to the society, it is valuable to the organisations as
well. CSR activities can furnace a stronger relationship between companies and employees,
increases the morale, and make employees and employers to feel more connected with the
society around them. Employees, stakeholders and customers prioritize the CSR when opting a
brand or an organization. These makes them to hold socially responsible with their corporate
beliefs, practices as well as profits. There are many corporations who practices CSR for their
ethical and strategic purposes (Barnett, M. L., Hartmann, J. and Salomon, R. M., 2018). From
strategic point of view it means CSR can make their contributions to the firms to make profits.
Most of the bigger companies are actively engaged to make and enhance their profits by holding
CSR. This may also helps to improves the stock prices of the brands, making executive stocks
and its options that makes shareholders more happier and profits will also improves for the
company. There are many companies such as Starbucks which is one the leading company in
creating Corporate Social Responsibility programs in different ways. This company has long
been identified for its discriminating sense of corporate social responsibility and their

commitments to community welfare and sustainability. As per the study, the company has get
various of its CSR milestones since it is come into practice (Jitmaneeroj, B., 2018). According
to the report of Global social impact of 2019, these milestones consist reaching 99% of ethically
sourced coffee while connecting global farmers together, innovating green buildings all over its
stores, creating innovative corporate programs for its employees and partners, make contribution
to million of hours society service. The company's goal for 2020 is to diminish the impacts of
environment on its cups and creates employee engagement in environmental leadership. Now a
days there are also many companies which are known for the CSR activities and programs such
as Everlane, clothing retailer or Ben and Jerry's ice crème. It has been seen that many of the
bigger brands CSR as an integral part of their business as they thinks that customers are more
likely to engage with those brands which are ethically and socially strong. CSR can be
significant element in order to maintain public relations. There are few categories of CSR on
which brands are focused such as;
Environment is one the primary category of CSR. As business has different sizes such as
larger companies have large carbon footprints. When a company take its step to reduce the
impact of carbon footprints then it is consider good for organisation and society as well.
Philanthropy, this can be refer when a business organization can practice CSR by
donating funds or their goods or services for the betterment of society and doing purposely non-
profits. There are many larger organisations which have efficient resources for the charities to
offer benefits and to the local community as well. A small effort by small companies may also
benefits a lot to the society (Uduji, J. I. and Okolo-Obasi, E. N., 2020). It has been suggested to
look forward for charities which have some specific needs in order to donate some kind of
money, products or time as well, which could be the best help that ever done.
Ethical Labour practices can also helps to demonstrate the CSR by treating their
employees and labours fairly and ethically. It is important that many of businesses are doing their
operations at international level where labour laws may be differ from country to country.
Volunteering suggests that to put an individual's time or employees' time voluntarily to
participate in society events which defines a lot about the sincerity of organization to the society.
A company's concern can be shown when it is doing for the good deeds and causes and without
expecting anything in return.

CSR can be significantly understand about compensating for its effect on the community
and environment. It is also identified that organization who are totally integrate CSR into their
business activities and operations can have an expectation of good financial return on their
investments (Vu, T. and Et.al., 2020). The organizations mixing CSR have identified to increases
prices and sales and more tend to reduce the employee turnover. One of the main cause that
business achieves its targets and gains desired profits is that customers pay their attention to the
way the company react to social and ethical causes but on the other side it can also boycott the
companies which have negative values. Business who utilizes CSR promotes values which
simultaneously increase the customer traffic towards the brand and increasing the profits for the
business.
When a company move towards CSR have an impacts in various domains. Most of the
organizations have taken various steps to enhance the environmental sustainability of the
business operations through various measures such as purchasing carbon offsets or installing
renewal energy sources. In managing supply chains, it also has been practice to eliminate
dependency on unethical labour patterns such as slavery and child labour.
CSR also affects the economy. When the organization's occupational safety and health
management is great in form and the prices are lower. The employees miss fewer working days
and less misshapennings or accident related interruptions of production. The efforts which
promotes CSR by the companies take it as a normative and moral obligation. Beside ethics there
are different aspects of CSR that influences the growth and stability of organizations directly. A
good reputation that comes together with CSR helps to encourage employees to dedicate
themselves and build customer loyalty as it encourage and builds confidence in care and
responsibility for society and environment. Organizations that utilize CSR position themselves
better in order to improve their image in the market rapidly. CSR influences activities where
company to society. An organization can benefits through increased sales, lower operating costs,
customer loyalty, gaining ability to attract and keep the talented employees, increased
productivity, getting access to have more capitals from the investors and many more. CSR also
plays a significant role in the supply chain sustainability in order to promote supply chain CSR,
will not improves and increases the competitiveness for products and services but also increases
the positive impacts to society and environment. This will help to provide positive corporate
business partners to trust and opt an organization within the supply chain. CSR and the market

based standards of financial performance are related negatively. This defines that CSR postively
impacts the profits of company but negatively influence the future returns of stock . CSR in
marketing focusing efforts to attract the customers who want to make a difference in a positive
way with their purchasing methods. This efforts include recyclable packagings and promotions
that increase the awareness of societal problems and issues. Along with this directing portions of
efforts towards charitable groups. Public sectors, non-profits, and public management are
becoming more incorporated (Wiratmoko, S., 2018). Government are also dependent on the
companies and non-profit organizations in order to provide public services. The volunteer
actions that organizations can take over and above abidance with minimum legal involvement to
address both society interests on a wider perspective and competitive interests. It is also an
obligation of company to increase its positive impacts and reduces the negative impacts.
CONCLUSION
It has been concluded from the above report is that Corporate Social Responsibility is all
about compensating its effect to society and environment. It has been seen that most of the
businesses are integrating CSR initiatives in their strategies to provide the benefit to the
company, creating a brand more appealing, increase the sales as well as friendly to the customers
by making a contribution to the society.

REFRENCES
Books and Journals:
Afsharipour, A., 2018. Corporate social responsibility and the corporate board: Assessing the
Indian experiment. In Globalisation of Corporate Social Responsibility and its Impact
on Corporate Governance (pp. 95-119). Springer, Cham.
Barnett, M. L., Hartmann, J. and Salomon, R. M., 2018. Have you been served? Extending the
relationship between corporate social responsibility and lawsuits. Academy of
Management Discoveries, 4(2), pp.109-126.
Jitmaneeroj, B., 2018. A latent variable analysis of corporate social responsibility and firm
value. Managerial Finance.
Uduji, J. I. and Okolo-Obasi, E. N., 2020. Does corporate social responsibility (CSR) impact on
development of women in small-scale fisheries of sub-Saharan Africa? Evidence from
coastal communities of Niger Delta in Nigeria. Marine policy, 118.
Vu, T. and Et.al., 2020. The effect of corporate social responsibility on performance in Nam
Dinh seafood enterprises. Management Science Letters, 10(1), pp.175-182.
Wiratmoko, S., 2018. The effect of corporate governance, corporate social responsibility, and
financial performance on tax avoidance. The Indonesian Accounting Review, 8(2),
pp.241-253.