Main Principles of Corporate Social Responsibility - Term Paper Example

CORPORATE SOCIAL RESPONSIBILITY By Location Corporate Social Responsibility Introduction Corporate social responsibility is the term commonly used in reference to the voluntary taking involvement of business organisations in the achievement of social and environmental objectives in the process of their day-to-day activities. This is a form of self-regulation whereby a business organisation monitors their operations and ensure compliance to the spirit of ethical standards, law, and international norms. Therefore, CSR can be referred to as a way through which business organisation shows responsibility on the environment and their stakeholders. CSR was first heard in the 1960s. At that moment very few organisations were involved in corporate social responsibility. This was the fact, CSR is a voluntary thing that only companies that want to be involved can. However, as time passed more business organisations started adapting CSR practices including CSR reporting. This is necessitated by the growth of sensitivity toward organisational social responsibility among consumers all over the world. Main principles of corporate social responsibility (CSR) The principle of legal compliance: this is the principle that expects all business organisations to comply with and understand international, local, declared, written, and effected laws and regulations that are applicable in their scenario. This kind of compliance and understanding should be according to specific procedures. This implies that companies should avoid involvement in any practices that are half compliant to the requirements stated by this principle. The Principle of Adhering to Customary International Laws: this principle expects business organisations to governmental and international agreements, declarations, executive regulations, covenants, guidelines and decisions in the process of formulating their CSR practices and activities. A company should make sure that their policies and practices are not conflicting with any of the factors that have been discussed herein. Policy of showing respect to related stakeholders lefts: according to this principle, companies are expected to accept and acknowledge the diversity that relates to stakeholders’ interests and lefts. Companies are also expected to accept and acknowledge the diversity that is likely to exist in their main and minor practices and products. This consideration should also include elements of business existence that might be of effect of their stakeholders. The principle of transparency: this principle expects any company that choose to be involved in corporate social responsible to ensure clarity, accuracy, and comprehensiveness when declaring their policies, activities, and decisions. When transparency is referred to in such a scenario, it should include giving details of proved and potential effects of the practices of a business organisation to the environment and society. They should make sure that such information is availed to the people who are affected by these activities and those who are likely to be affected by their activities.This simply implies that corporate social reporting is not all about making a company look good on the eyes of consumers and other stakeholders, but a way through which business organisation can communicate actual facts on the influence that their activities have on the environment, and what they have done to minimize the negative effects of their activities to the environment. The principle of respect for human lefts: this principle requires every business organisation to formulate and execute policies and practices that show respect for human lefts are declared in the Universal Declaration of Human lefts. Everything that a business organisation should show that they have right to human rights regardless of the people who are affected by their policies and practices (Ditlev-Simonsen&Wenstøp, 2013, p. 141). This will include making sure that they curb any form of discrimination within the organisation. This will also involve making sure that all their practices and principles are not insulting or discriminative to the culture of the community. The principle of collaboration with stakeholder: given the fact that stakeholders are the highest beneficiaries of corporate social responsibility activities and principles, it is advisable for business organisations to involve them in the formulation of principles and activities relating to CSR. How CSR activities might influence customers May business organisations usually formulate and implement CSR policies and activities with the aim of influencing the opinion of stakeholder on the business. However, it cannot be denied that the section of stakeholders that are always targeted by many organisations are the customers. This is basically because they are the people who pay for the products or services that a business organisation produces. One of the ways through which CSR policies and activities can be of influence to customers is creation of brand awareness. It has gotten to the age where customers do not just buy products because of convenience or cost. All over the world sensitivity to environmental issues among consumers in increasing. Therefore, a company can as well create awareness of their brand by making customers aware that they are having policies and activities that show that they are environmentally and socially responsible for their activities (Farache& Perks, 2010, p. 244). Socially and environmentally aware, customers are likely to buy such products believing that they are indirectly contributing to the enhancement of the society and the environment through the company. People are likely to be aware of a brand once they notice their involvement in CSR practices. Business organisations can also use CSR to enhance their brand image. No company want to be seen as the company which does not show any social and environmental responsibility. This is the reason as to why many business organisations are struggling to show their “green”. Even companies which produce products that are of harm to the environment will strive tp show that they are doing all they can to reduce the harmful effect that results from their activities. Such antics are always used purposely to change the image that customers and other stakeholders have of a certain brand. People might be aware of the existence of a certain brand but fail to know the extent to which the company has social and environmental responsibilities. Opinion of customers on certain brands usually change as soon as they are aware of the CSR practices and policies that a business organisation has. This might influence their decisions when it comes to buying products or services. CSR can also be used in the creation of the sense of brand community. Brand communities are usually formed due to attachment to products or brands.Researches have it that this can be done through stressing the connection between brand, identity, or culture. Through CSR a business organisation can be able to bring people of similar values together. For instance, people who are against human activities that endanger the environment can be brought together if a company organises a tree planting event. A company can also bring people who sympathize with orphaned children if they were actively involved in programs that help such people. It can always be seen that such community will always want to have the sense of belonging by indirectly involving themselves in such practices through buying products or services that are availed by such organisations. Through such processes, a brand can have a pool of loyal customers who are attached to the brand because of the belief that the organisation is socially and environmentally responsible. CSR policies and practices can also be used to create brand engagement. Brand engagement can either be emotional or rational. Whichever way, customers have the tendencies of getting attached to a certain brand because of what they did rather than producing what they sell. Given the fact that the relationship between brands and their customers is external, it is upon the managers to make sure that every CSR activity and policy that they formulate will have some emotional or rational appeal to their customers (Sarbutts, 2003, p. 344). Sometimes managers prefer using a blend of both emotional and rational appeals. This implies that whatever they do, they should make sure that they focus on the things that their customers are passionate about and the thing that their customers have more interest in. things that customers are passionate about will be important in creating the emotional connection between the brand and customers while those things that they have special interest in can be used in creating a rational connection between customers and a brand. Conclusion As discussed herein, it is clearly evident that CSR has grown to be an important part of the business environment. Though it is voluntary, organisations of the modern age have found out just how important it can be to the success of enterprises. It is important for a business organisation to be able to please their stakeholders. This paper focusses on the influence that CSR can have on customers. It is of importance for a business organisation to show their customers that they care about the society and not just their profits. Therefore, this paper gives ways in which CSR policies and practices might influence the behaviour of customers. There are principles that are always used as guidance in the formulation and implementation of CSR policies and practices. Given the importance of these principles, it is important for managers to adhere to them as discussed herein. Bibliography Ditlev-Simonsen, CD &Wenstøp, F 2013,“How stakeholders view stakeholders as CSR motivators”Social Responsibility Journal, 9(1), 137-147. Farache, F & Perks, KJ 2010,“CSR advertisements: a legitimacy tool?”Corporate Communications: An International Journal, 15(3), 235-248. Sarbutts, N 2003,“Can SMEs “do” CSR? A practitioners view of the ways small-and medium-sized enterprises are able to manage reputation through corporate social responsibility”Journal of Communication Management, 7(4), 340-347. Read More