Analyzing the Role of Corporate Social Responsibility in Global Firms

This essay explores the role of Corporate Social Responsibility (CSR) in contemporary business, highlighting its impact on economic, social, and environmental factors. It discusses how CSR serves as a self-regulating business model, enhancing social accountability and fostering positive customer relationships. The essay emphasizes that businesses must consider their broader societal impact beyond profit generation, addressing public concerns about social justice and environmental issues. Examples like McDonald's and Coca-Cola illustrate successful CSR implementation, demonstrating benefits such as improved public image, employee engagement, and long-term sustainability. The challenges of implementing CSR, including financial costs and investor hesitancy, are also acknowledged. Overall, the essay concludes that CSR is crucial for modern businesses seeking growth, positive public perception, and ethical operations, while also recognizing the difficulties in balancing societal interests with business objectives. Desklib provides access to this essay and numerous other solved assignments.

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Role of Corporate Social Responsibility (CSR) in today’s world
Corporate social responsibility is such business practices that tend to incorporate the
sustainable development. It puts the positive impact on the economic, social, and
environmental factors. It is an opportunity for the company to protect itself with the several
risks presented outside. It is said to be the self-regulating model of business that assist the
company in becoming socially accountable. Several companies including Starbucks are also
known for fulfilling the corporate social responsibility in an effective way. It has also
achieved the several milestones by producing the ethically sourced coffee (Lim &
Greenwood, 2017). It sin true that the different organisation have different definitions for
CSR. In the CSR, companies are required to answer two things. The first one is management
quality in terms of processes and people. Other one is the quality and nature of the impact on
society. CSR is also proved to be best in order to maintain the positive relationship with the
customers. By having the clear CSR policy, it can also significantly affect the purchasing
decisions of the customers. There are times when customers even ready to pay the higher
price than the actual price (Cramer, 2016).
It is true that business is the significant part of the society. Every business
organisation affects the survival of the people, natural resources as well as their surrounding
in some or other way. Business houses in recent time are required to take the several
responsibilities besides generating profit. due to the decline in the public trust, it becomes
easy for the organisations to create job opportunities to the economy. In the recent time,
every public is too much conscious about the social problems, environmental issues as well
as about the social justice. Public also expect to be more open and accountable. Due to this,
CSR has become the significant part of conducting the business. Whenever CSR policy is
implemented effectively, it tends to attract the positive publicity. CSR also requires the
effective engagement with the internal as well as external stakeholder. Every organisation
wants to grow and innovate. By adhering to innovative measures of CSR, it helps the
organisation to create such environment (Llamas & Jomo, 2018).
Taking into account the example of McDonalds, that stands aside from the huge
competition by fulfilling its CSR. McDonald’s as the leading company is able to succeed by

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following the CSR programmes. Due to the increasing emphasis on the environmental and
social issues, CSR has gained the more and more recognition. From the past few years,
customers are increasingly giving emphasis to their obesity and health. By taking this thing
into mind, McDonald’s has brought several changes in its menu. Besides this, it has also
incorporated the several CSR in business activities. Therefore, it is striving toward the
sustainable future for the society as well as company. CSR is also about striking the balance
between societal interest and business by creating the sustainable global economy. In the
recent time, those companies are successful who effectively adhere to the CSR (Tata &
Prasad, 2015).
In a report, it is found that Coca Cola has effectively undertaken the several CSR
programmes. The main objective of Coca Cola is to employ the five million women by the
year 2020. Using this programme, it will not only help the women by also serve the
community as a whole. The main aim of the company by using this CSR model is to serve the
health care in a better way. In this way, it can be stated that the CSR is proved to be
innovative factor of the business that further helps the business to achieve growth in the
business world. By benefitting the economic, social, ecological, and educational domains of
the country, it is easy to achieve growth by the company. Due to several reasons, CSR has
become the significant aspect in conducting business (Sheikh, 2019).
Organisations also get several benefits being a good corporate social responsibility. It
helps the company in building a good reputation as a responsible business. By reducing the
wastage on resource, it can also help the environment. at the same time, it can save money.
Being a responsible CSR business, it makes easier to recruit the talented and skilled
employees. It also becomes easy to retain the current employees who are working in the
organisation. thereby, it helps in reducing the cost on retaining and recruitment (Windell,
2016). It also brings the positive image by involving the employees socially. As a result of
this, it helps in developing the sense of loyalty toward the organisation. Being a socially
responsible citizen, it helps the company to address the grievances of employees in a better
way (Segerlund, 2016). if any company is doing good for the community by involving
employees in an ethical manner, employees also likely to contribute for creating a better
society. If any company provide the opportunity to its employees for involving in the
company social activities, it benefits it in several ways. Employees in this case also get the
chance to contribute in better work. At the same time, it also assists the company in

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enhancing the relationship with clients. It also helps in delivering the public value outcomes
(Kolk, 2016).
Companies also face several challenges by implementing CSR. The first challenge that is
faced by the companies is lack of cost. It is true that not every company have higher cost
saving that can be invested in CSR. CSR includes high financial cost. Investors also not take
effective participation in CSR. They do not want to invest amount for the CSR activities of
company. They feel that it will incur high cost for them. Sometimes, government also not
show every time in the company for undertaking its CSR activities (Ramesh, Saha, Goswami
& Dahiya, 2019).
In the limelight of above discussion, it can be stated that the corporation social
responsibility plays an essential role in the organisation. In the recent time, it becomes
essential for the organisation gain good public image if it want to grow and earn huge profit.
Every customer in recent time also wants to purchase products from those companies who are
undertaking CSR activities in its product offering. At the same time, it helps the companies to
become a socially responsible citizen by saving huge cost. Whenever any company get good
public image based on the CSR, it tends to help the company in several ways. Companies
also face several challenges due to the minimum cost. It is concluded that investors also not
take interest in investing extra amount on the CSR activities of company.

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References
Cramer, J. (2017). Corporate Social Responsibility and Globalisation: an action plan for
business. United Kingdom: Routledge.
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Lim, J. S., & Greenwood, C. A. (2017). Communicating corporate social responsibility
(CSR): Stakeholder responsiveness and engagement strategy to achieve CSR
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Llamas, F., & Jomo, K. S. (2018). Do Cooperatives Have Anything to Offer in Today’s
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Ramesh, K., Saha, R., Goswami, S., & Dahiya, R. (2019). Consumer's response to CSR
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construction in a globalizing world. United Kingdom: Routledge.
Sheikh, S. (2019). Why should the business community and organizations leverage social
media to demonstrate their corporate social responsibility (CSR) commitment?.
In Corporate Social Responsibility and Strategic Market Positioning for
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Tata, J., & Prasad, S. (2015). CSR communication: An impression management
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Windell, K. (2016). The commercialization of CSR: Consultants selling responsibility.
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