WACB100 - CSR: Economic and Social Impact on Business and Community

This essay provides an integrative summary of how Corporate Social Responsibility (CSR) activities impact both business and the community, focusing on the specific context of human trafficking. It highlights that while economic performance is a priority, brand reputation, enhanced through CSR, significantly influences profitability. The paper references the International Labour Organisation (ILO) data, emphasizing the substantial illegal profits generated from forced labor and sexual exploitation. Investing in CSR, particularly in curbing human trafficking, improves a company's image, fostering customer trust and increasing demand. Furthermore, the essay notes that government collaboration with private organizations in CSR initiatives enhances credibility, promoting economic growth and social acceptance. Ultimately, CSR activities contribute to a healthier, more balanced community, expanding the customer base and fostering labor productivity through trust and respect for individual rights. The paper concludes that integrating CSR into business decisions is a strategic investment leading to improved economic performance and a more socially balanced community.

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ACADEMIC COMMUNICATION IN BUSINESS AND
ECONOMICS (WACB100)
ASSESSMENT TASK: INTEGRATIVE SUMMARY&
REFLECTION

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Table of contents
Introduction................................................................................................................................3
Economic and social impact on business and community.........................................................3
Conclusion..................................................................................................................................4
Reference....................................................................................................................................5

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Introduction
Human trafficking is a trade of humans for a number of purposes such as forced
labour, forced marriage, slavery and many more. The human trafficking is a crime as it
violates the basic rights of the victims. Women, men and kids are literally kept in captivity
and control and exploited for commercial activities. This paper produces a summary based on
an integrative study of how the CSR activities of the organisation can impact on the business
and the community as a whole.
Corporate social responsibility is an activity wherein the management of corporate
organisations incorporate the national laws, ethics and the needs of the society in the business
decisions. In other worlds this is an activity that allows the organisation to return some values
back to the society. Studies have shown that CSR activity has a major role to play in the
brand reputation which in turn triggers the demand of the products or the services of the
organisation.
Economic and social impact on business and community
Economic performance is not only the main priority of the contemporary businesses
as leaders throughout the world have understood the importance of brand reputation. In order
to do justice to the reputation of the organisation most common strategy is to emphasize on
corporate social responsibility activities. According to Saeidi et al. (2015), the corporate
social responsibility from the side of the organisations not only impacts on the society but it
also improves the profitability of the organisation through a clean and positive image among
the minds of the customers and the citizens of society. As per the data and report of
International Labour Organisation (ILO) around 150 Billion dollar worth of annual profit is
generated by the forced labours. The report also highlights that around 21 millions of labours
are currently trapped in modern-day slavery. Additionally, around 4.1 millions of victims are
sexually exploited each year.
Investing in reducing human trafficking and thereby implementing policies to curb
labour exploitation would put across a put across a positive image among the customers and
clientele of the organisation. This, in turn, would reflect in form of increased demand for the
products and the services of the company. Burn (2013) highlighted that customers of the
market are attracted to trust and contribution from the side of the organisation makes them
feel valued. Although the cost of producing the products and the services of the company
would go up following the activities, this would pay back the organisation for better returns.
From many evidences of human trafficking, it has been seen that government seeks
collaboration from the side of private organisations as well so that the reach of the campaign

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and the fund does not become the problem. This further increases the credibility of the
organisation which reflects in both economic growth and social acceptance of the
organisation (Saeidi et al. 2015). There is a bigger goal which could be accomplished through
the implementation of CSR activities by the organisation. This is to develop a healthy and
balanced community so that enhanced customer base of the organisation pays a great return
in the future.
Again from the perspective of the community, the activities of the organisation to
curb human trafficking also have positive impacts (Burn, 2013). The people of the
community would develop the belief that they would not be exploited and terms of
employment would be kept transpiration from the side of the organisation. The resulting trust
on the employer would enhance the labour productivity thereby contributing to the overall
well-being of the society as a whole. Furthermore, a healthy harmony would also be
established in the society where rights of all the individuals irrespective of their occupation
would be respected. Apart from that, the activities of the organisation would also be helpful
to spread awareness among the people of the society that child labour is a crime and they
should rather be encouraged to go to school. In addition to that, the contribution from the
organisation would also put across a message to the government regarding the willingness of
the businesses to operate cleanly.
Conclusion
Therefore, the organisations need to emphasise on the articulation of CSR activities
along with the business decisions for their own interest. The investment in CSR works just
like the other investments of the organisation. In this case, the reduced human trafficking and
hence the overall improved social structure would make a healthy customer base for the
organisation in the future. Besides, with the investment in the social inclusion of the issue the
organisation would also get support from the government that will result in improvement in
both economic performance of the organisation and social balance in the community.

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Reference
Burn, J. (2013, December 11). Cracking down on slavery and human trafficking in NSW. The
Conversation. Retrieved from https://theconversation.com/cracking-down-on-slavery-and-
human-trafficking-in-nsw-21116
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of
competitive advantage, reputation, and customer satisfaction. Journal of Business
Research, 68(2), pp.341-350.