Corporate Social Responsibility: Profitability in Business Essay

This essay delves into the concept of Corporate Social Responsibility (CSR) and its potential to enhance business profitability. It explores CSR through the lens of various academic sources, including Crane, Matten, and Spence (2013), and Carroll and Shabana (2010), examining how CSR initiatives can provide value to stakeholders. The essay discusses the perspectives of Edmans (2012) on job satisfaction and firm value, and Smith (2005) regarding the long-term benefits of CSR. It highlights the driving forces behind CSR programs, the varying objectives of CSR, and the potential for CSR to improve a company's standing in society. The essay concludes by acknowledging the ongoing debate surrounding CSR's viability while underscoring its overall significance in the business landscape.

Business Writing on Corporate Social
Responsibility
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Table of Contents
Introduction.................................................................................................................................................3
Crane, Matten and Spence (2013)...............................................................................................................3
Carroll and Shabana (2010).........................................................................................................................3
Edmans, 2012..............................................................................................................................................4
Conclusion...................................................................................................................................................4
References:..................................................................................................................................................5
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Introduction
Corporate social responsibility is that bunch of activities taken up by the corporate which can
facilitate society through value addition. In this article, main issue of discussion will evolve on
whether the corporate can make more profit by adopting CSR programs with respect to
literatures of Crane, Matten and Spence of 2013 pages 4 and 7, and Carroll and Shabana of 2010
pages 85 and 87.
Crane, Matten and Spence (2013)
The question of if the corporate make more profit by adopting CSR is debatable issue. This
concept has come into light since last decade and become stronger for the corporations of US and
Europe. It is observed that CSR driven by philanthropic mission gives the corporate more
mileage in society due to their effort to ensure better living style for the stakeholders of the
community. Some corporations project this as their achievement in media while others prefer to
serve the society in silent mode. (Crane, 2013)
The driving forces for CSR programs for the corporations differ as per the nature of business the
corporations practice and the segment of business they belong to. CSR is altogether is a
management idea which has different objectives. Primary objective of CSR is to provide better
social, environmental and economic concerns for the stakeholders while secondary objective is
to draw mileage from those activities.
Carroll and Shabana (2010)
To find out what the corporate gets out of CSR activities, we have to consider the quote of
Howard Schultz, the Chairman, President and CEO of Starbucks which focused on the belief of
the company to serve the coffee farmers and the specific industry by working together with
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Fairtrade Labelling Organizations International ensuring the accomplishment of the objective of
standards of environment and agriculture. (Starbucks, 2008)
Threat to corporate may be faced through some CSR activities as defined by Kurucz et al. 2008,
(p. 88). T. Smith (2005) debates with the justification that CSR activities like policies on Equal
Employment Opportunity (EEO) and environment has the ability to ensure enhancement of value
of stakeholders in long term through reduction of costs and risks. He argues that proper
implementation of EEO practice is required for illustration of a policy which can reduce the HR
turnover through improvement of morale. (smith, 2005)
Edmans, 2012
As per the article of Edmans named The Link between Job Satisfaction and Firm Value, With
Implications for Corporate Social Responsibility, it is highlighted that job satisfaction and firm
value are linked through the channels of recruitment and retention of key employees. (Edmans,
2012)
It is observed that the link between job satisfaction and firm value is creating greater level of
interest amongst the academicians and the professional practitioners. This relationship is being
described by Landy (1989) as the “Holy Grail” of behavior of the organization.
Conclusion
CSR is a management strategy to serve the society through some activities with the objective to
facilitate the stakeholders. Common debate of viability of CSR is argued by critiques in positive
and negative manner, but the role of CSR cannot be denied in overall aspect.
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References:
Crane, A..M.D..a.S.L.J., 2013. SSRN. [Online] Available at: https://papers.ssrn.com/sol3/Papers.cfm?
abstract_id=2322817 [Accessed 16 September 2017].
Edmans, A., 2012. The Link Between Job Satisfaction and Firm Value,With Implications for Corporate
Social Responsibility, p.1.
smith, t., 2005. Institutional and Social Investors Find Common Ground. the journal of investing, (Fall
2005), pp.57-65.
Starbucks, 2008. Starbucks Newsroom. [Online] Available at:
https://news.starbucks.com/news/starbucks-transfair-usa-and-fairtrade-labelling-organizations-
international [Accessed 15 September 2017].
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