Comprehensive Analysis of Micro and Macro Factors in CSR Business

This report provides a comprehensive analysis of corporate social responsibility (CSR) by examining the influence of both micro and macro factors on business operations. Micro factors, which directly impact the business, include suppliers, customers, competitors, market intermediaries, the public, and employees. These elements affect pricing, customer satisfaction, supply chain reliability, and competitive strategies. Macro factors, largely uncontrollable and external, encompass economic, political, legal, social, and demographic environments, influencing business opportunities and threats. The report concludes that understanding both micro and macro environments is crucial for identifying strengths, weaknesses, opportunities, and threats, and for ensuring that CSR initiatives positively contribute to a company's performance and societal well-being. The document is available on Desklib, a platform offering a wealth of study resources for students.

RUNNING HEAD: CORPORATE SOCIAL RESPOINSIBILITY 0
Corporate Social Responsibility

CORPORATE SOCIAL RESPONSIBILITY 1
Table of Contents
Introduction...........................................................................................................................................1
Micro Factors.........................................................................................................................................2
Macro Factors........................................................................................................................................3
Conclusions...........................................................................................................................................4
Bibliography..........................................................................................................................................4

CORPORATE SOCIAL RESPONSIBILITY 2
Introduction
Corporate social responsibility is an effective business model that helps to regulates in
socially accountable manner to itself, stakeholders and the general public. Micro factors of
the firm are concern with its suppliers, competitors, customers, market intermediaries and
general public. It is continuous commitment to business that behaves with ethical
environment and contributes to development with quality of life (India CSR, 2018). With the
same, macro factors are those which affects the business environment as natural factors,
international, economic, political and government, socio cultural and demographic factors.
There are several macro and micro factors that affect the business and they are always
responsible for the dynamic changes in the internal structure as well as external structure of
the business organisation. The firm that adopts social wellbeing and is more responsible
towards corporate society has more potential than the other companies (Pan et al., 2018).
Micro Factors
The microenvironment factors in the company are directly in contact and have direct
influences on the business entity. This factor comprises of the elements that have direct
affects the business entities. For example, suppliers has direct contact on pricing of the
products and competitive firms will start a war of prices in firm that is relatively small but
when we see rival firm it will hesitate to initiate the price war (Oxford, 2019).
Source: (S, 2015).
Consumers- Customers uses product of the companies and ensures satisfaction of the
customers for longer period of time. Satisfaction of the customer is the primary objective and
maintains all its taste, preferences are important for the firm to grow its business and cherish
it. To create a customer that helps to grow the firm business, everyone needs to maintain the
relation with its customer’s weather it may be small firm or large firm (Watson, 2019).

CORPORATE SOCIAL RESPONSIBILITY 3
Suppliers – Suppliers are those people who supply inputs from other parts to the company
for increasing its profits. The quality and the main reliability are always ensuring the
functioning of how to operate business. If they do not supply good and right quality of
products and information, then it directly affects the corporate social responsibility of the
business.
Competitors – Every firm has its competitors that are rivals who compete with the firm in all
resources and market also. A competitor examines the practices which are followed by firms
and adapt the several in their own firms to adjust with the competitions. For example,
Videocon is the competitors of Philip Television in its Television Market and when
completion increases they need to change their practices in the organisation.
Market Intermediaries- These include various distributors, retailers and wholesalers that
create links between its customers and its firms. The firm itself is an example of aggregate
numbers with owns investors and shareholders with the help of board of directors.
Public and Employees - Public perception is the biggest threat to business with new
opportunity for another firm. The general public chooses the brand of their choices with the
help of advertisement and review of the customers for the particular product. Employees of
the organisation also influences and impact from internal micro environment and made the
choices according to that and this surely affects the business with its internal strategies.
Macro Factors
A macro environment factors relates to the external environment and they are mostly
uncontrollable in nature. A macro factor creates all the opportunities, faces the threats and has
practices that affect the scenario of business. Some of the external factors that affect the
structure of the business are as follows (Claessens, 2015).
Source: (Claessens, 2015).
Economic Environment – This consist of conditions, economic system and policies that are
the most important to its external factors. The changes in nature of economy, development

CORPORATE SOCIAL RESPONSIBILITY 4
process of the country, availability of economic resources, public finances of country,
purchasing power of individuals with its prices and circulation of money with its credit
availability. For instance, in all the developing countries like Japan and India the low income
is the reason for demand high of the products and the entire major services of the firm.
Political and Legal Environment – Business firms affects with legal and political
environment as with the changes in the government actions on local or international level.
New implementation of policies and actions directly affect the business firm and has to
change its internal structure according to them.
Social Environment – The social environment consists of dynamic factors and that may
have cultural influences, the perception of values and beliefs prevailing in the society. An
international company always studies the socio cultural environment before entering into the
market. There is a mandatory concern about the goods and services, otherwise company will
affects from high amount of losses.
Demographic Environment – Demography refers to the study of the populations in the
demographic environment and the various measures as population sizes, growth rates, family
sizes, education levels, and religion, employment status. If there is any change in such graph,
the business also affect in their growth sector as consumers are the first priority and changes
in that leads to change in the demography of the company.
Conclusions
Microenvironment and macro environment covers the overall business environment and they
are both complementary to know about the strengths, threats, weakness and opportunities in
whichever business they operate. The different macro factors always affect the internal
structure of the business by its social culture, environmental, political and economic
environmental culture. Some of the micro factors are controlled by the organisation as
suppliers, competitors, market intermediaries and employees are concern with micro factors
and can be easily access in the internal structure. These are all related to corporate social
responsibility as social responsibilities with corporates are the main elements that affect the
business in positive or negative manner.
Bibliography

CORPORATE SOCIAL RESPONSIBILITY 5
Claessens, M., 2015. Macro Environment. [Online] Available at: https://marketing-insider.eu/macro-
environment/ [Accessed 3 June 2019].
Claessens, M., 2015. THE MACRO ENVIRONMENT – SIX FORCES IN THE ENVIRONMENT OF A
BUSINESS. [Online] Available at: https://marketing-insider.eu/macro-environment/ [Accessed 3 June
2019].
India CSR, 2018. Definitions of corporate social responsibility – What is CSR? [Online] Available at:
http://mallenbaker.net/article/clear-reflection/definitions-of-corporate-social-responsibility-what-is-
csr [Accessed 3 June 2019].
Oxford, 2019. The Impact Of Micro and Macro Environment Factors. [Online] Available at:
https://blog.oxfordcollegeofmarketing.com/2014/11/04/the-impact-of-micro-and-macro-
environment-factors-on-marketing/ [Accessed 3 June 2019].
Pan, X., Chen, X. & Ning, L., 2018. The Roles of Macro and Micro Institutions in CSR. [Online] Available
at: http://sci-hub.tw/https://doi.org/10.1108/MD-05-2017-0530 [Accessed 3 June 2019].
S, S., 2015. Micro and Macro Environment. [Online] Available at:
https://keydifferences.com/difference-between-micro-internal-and-macro-external-
environment.html [Accessed 3 June 2019].
Watson, G.H., 2019. Delivering Value to Customers. [Online] Available at:
http://gregoryhwatson.eu/images/5-QP_Watson_-_May2002_-_Drucker_-
_Delivering_Value_to_Customers.pdf [Accessed 3 June 2019].