Strategic Corporate Social Responsibility - Essay Example

The paper "Strategic Corporate Social Responsibility" is a good example of an essay on business. Every business has discretionary responsibilities owed to the community in which it exists. Such responsibilities are optional for the business although, they define its culture and values. Falling under discretionary responsibilities, corporate philanthropy entails conferring company resources to social causes. Company resources may be in the form of donations to a charitable endeavor, technical and managerial expertise to a community project, and infrastructural facilities such as vehicles. Since these resources are aimed at benefiting the community, corporate philanthropy is essentially voluntary activity. Many organizations have taken up corporate philanthropy as a means to get recognition globally, where a charitable endeavor supported by an organization is widely acclaimed (Sunita 270-271).

            The paramount benefit arising from corporate philanthropy is that it generates goodwill, as it is seen to have the interests of the community in mind. Goodwill generated overtime translates a good reputation, which in turn implies market development. This is because clients are more likely to buy a product if they perceive the company as having a charitable spirit. The customers an organization already has also become loyal and passes on their positive opinion of the company to potential customers. Where an organization has supported charitable endeavors positive publicity is reaped, thus making them prosper. This has made corporate philanthropy appear as a long-run investment thereby, a sound business decision.

            Notably, also, corporate philanthropy builds an image that can help the organization attract the best employees in the market while developing loyalty from those it has presently. This is because employees will want to be associated with a company that invests itself in the betterment of the community and not merely out to make profits. From a broader perspective, all stakeholders-suppliers, financial institutions, consumers and employees, will want to be associated with an organization that gives back to the community. Consequently, an organization that undertakes corporate philanthropy will be able to foster a relationship of trust and loyalty with all its stakeholders (Werther and Chandler 19).

            The other significant benefit of corporate philanthropy to organizations as that it grants them tax exemptions. For this case, organizations that give donations for the following intentions charity, educational, religious, scientific, literary, promote sports contests or defend children and animals from mistreatment. Donations made for either of these reasons allow organizations that make the donations to be exempted from paying income tax. Nonetheless, it is important to highlight that there are other requirements that an organization must fulfill to be exempted from paying income tax. This is in addition to making donations for the aforementioned purposes (“Charitable Donation Tax Deductions”).

            Organizations may adopt corporate philanthropy as a means of surfacing into a new market. In such a scenario, an organization may opt to develop infrastructure, for example, technology, in a country in order to create a familiarization and at the same time earn goodwill. This is particularly used when organizations have identified an emerging market for their products or services. Corporate philanthropy hence kills two birds with one stone in the metaphorical terms (Sunita 275). In today’s market, consumers are more informed due to technological innovations such as smartphones, which provide real time access to news. As a result, their expectations have increased where they hold companies accountable for the development of the community in which they operate and anticipate that an organization’s objectives will move beyond the generation of profits (Werther and Chandler 20).