Constituents of Corporate Social Responsibility - Assignment Example

? Corporate Social Responsibility Corporate Social Responsibility is a term that is used to refer to a process where an organisation’s performance is measured through economic, social and environmental parameters (Schwartz and Saiia 24). It is meant to promote both the company, as well as, the society as a whole. In essence, the CSR activities are being undertaken globally as one of the routines that have been adopted by organizations and companies for the effective running, over and above, offering social responsibility to the society. The rationale of CSR has been articulated in numerous ways, which emphasize on building of sustainable businesses, which require stable economies, markets and communities (Roberts and Baker 7). Needless to mention that, most individuals ranging from students, managers or even employees are conversant to Corporate Social Responsibility, in businesses, community, and media. Although, CSR has various definition that are given in accordance to the organizations and or companies that practise it, it is clear that social responsibility is a mandate that decision makers ought to make in protecting and improving the welfare of the society in respect to their own interests (Cosans 396) Constituents of Corporate Social Responsibility: benefits to the organisation Corporate Social Responsibility is made up of constituents, which are necessary in making an impact in both the companies and the society. To begin with, companies have responsibilities other than the usual production of goods and services to make a profit. Basically, the responsibilities entail assisting in solving important social challenges particularly those that they have contributed towards. Moreover, corporations have wider elements as compared to stockholders where the impact goes beyond market transactions to serve a larger population of people in the society (Mulligan 266). Never the less, CSR in companies can be tricky especially when it comes to application of ethical standards. For instance, most of the morals standards present in companies tend to conflict with each other because it is still unclear which standards should take priority. Somewhat, companies have the responsibility of respecting ethical values and principles in relation to pursuing company objectives, which translate to high profit margins. Of importance to note is that, the ethics of business make a company socially responsible. Once a company practise good business ethics, then it becomes easier for companies to participate in social responsibility (Roberts and Baker 8). Enhancing Brand and Image Reputation CSR in an organization or a company ensures that its reputation and brand continuously grow in reference to their practise. Hence, CSR programmes are bound to provide numerous chances especially when they want to communicate to the stakeholders by use of messages. In relation to reputation, CSR is involved in ensuring that it management any reputation risk that may tend to harm the image of the company in one way or another (Bejou 3). Additionally, companies involve themselves in projects within the society that enhance awareness from the public, a situation that translates to an improved reputation. Consequently, companies should be conversant with the needs of the customers, partners and suppliers. The action and behavior of the company toward these three stake holders automatically enhances the company’s brand. Once a company has a good perception in terms of image reputation and brand, a culture of understanding is created between the society and the company (Mulligan 268). For instance, it is the business of companies to works in the interest of behaving responsibly especially when some groups of activists are not comfortable with some of the aspects that have been put forward by the company. Thus, CSR plays a crucial role in ensuring that the company benefits through brand and image reputation. Increased Sales and Customer Loyalty It is evident that CSR does not only entail social responsibility especially to the society but also ensure that the company involves is responsible for its own course. Essentially, every company or organization must be in a position to practise pure business ethics that are crucial in the market. Good business ethics ensure that the company is able to handle various groups of customers in the market professionally (Cosans 394). It is worth noting that, once the customers are satisfied with the kind of services a company is giving to them then it easy for the company to have increased sales, over and above, a strong customer loyalty. CSR in companies is anticipated to have significant consequences in terms of positive or negative impact of decision that are made in relation to benefiting the company as compared to the stake holders and the society. Of importance to note is that, managers in companies have the mandate to come up with CSR positions that are more beneficial the company (Roberts and Baker 11). For instance, when a company had strong business ethics, it has higher chances of having increased sales and customer loyalty as compared to a company that has poor business ethics. Workforce Diversity Apparently, the meaning and nature of business responsibility is known to form administrative control that is necessarily in the internal relation of a company. It is generally argued that companies are made up of workforces in relation to the kind of products that the company puts in the market. In light of this, the company should ensure that the workforce has diversity that has direct or indirect impact on the company. Various CSR activities ensure that the workforce in different departments and levels are able to work together, a situation that improves work place collaboration. Basically, workforces which constitutes of employees must be confident with the company they work for in terms of shared values and objectives (Schwartz and Saiia 28). For instance, majority of the workforce in companies and organization want diversity particularly in their working protocol. This ensures that they are able to perform to their best for the company, a process that benefit the company more than the stakeholders and the society. Lower Operating Cost Every company wants to operate in a low cost. In reference to this, involvement in CSR activities is crucial as it ensure that some of the operating costs needed in companies are substantially reduced to benefit the company. Low operating cost of companies ensures that less amount of money is used to operate the company, a situation that translates to an improved profit margin that is beneficial to the company (Cosans 392). For instance, when a company involves itself in numerous CSR activities with the society it becomes easier to for it to use reduced finances especially in advisement of it products and or services, since the activities create awareness for the company to the society although the company stands to benefit more than the society and the stake holders. More Ability to Attract and Retain Employees CSR is crucial as it ensures that through activities that certain companies engage in there is assurance of having a strong attracting power for employees and at the same time being able to retain them. In fact, employees working in a new environment are highly likely to learn new skills that are which are transferable to the organization that they might be working for. Equally, the transferred skills are capable of generating innovation that may result to a positive change in the entire company (Bejou, 3). Through this there is an urge for coming up with new and better ways of operating as a company. For instance, employees are proud of working in companies or organizations that participate in CSR, as this assist in retention of employees (Schwartz and Saiia 25). In the same way, employees of such companies have a positive attitude towards the company thus marketing the company to other potential employees. In light of this, recruitment of employees is much easier. In the same way, employees are motivated by working good causes and assisting in the community activities. In essence, the company is able access employees easily for the benefits of the company. It has been argued that Corporate Social Responsibility is meant to add a human touch to business objectives that generate profit. In particular, a company is said to practise CSR, when it makes profits, abides by the laws and regulations that govern it, practise business ethics, over and above, been a good corporate citizen. Conversely, CSR is mechanistic, rigid as it does not distinguish between obligatory and discretionary actions. For instance, those companies that were rated in the front line two or three years ago, have suddenly become violators of ethical and legal standards (Bejou, 5) Improved financial performance Any organisation that endevours to maintain competitive advantage must apply the level of obligations proposed by Milton Friendsman “The Social Responsibility of Business is to Increase Profits’’ (Cosans 391). This is arguably true because the primary goal of any business is to maximise profits. Besides, every concept of corporate social responsibility revolves around maximising profit. For example, it is apparent that application of CSR creates good public relations. In the end, if the public has trust and good relations with the organisation, it is highly likely that more customers both new and existing customers will consume products of the said organisation. In another dimension, since the CSR improves product quality, it is apparent that more customers will consume such products. In addition, CSR helps an organisation in attracting and retaining competent employees, in the end, such employees become more productive because of the incentives and good employee relations fostered by application of CSR. All the above deliberations points out to the aspect of improving financial performance of the organisation. Although there are some critics of the Milton’s notion that the social responsibility of a business is to increase profits, it is evident that all other applications of ethics and business morals ends about increasing organisations profits (Mulligan 267). Enhance recruitment efforts It is ethical for any organisation to have a reputable recruitment process. This ensures that the organisation recruits competent ant result orient workforce (Roberts and Baker 11). Since CSR also involves application of ethics in discharging various organisations mandate, it, therefore, means that an organisation that applies CSR in its operations tends to evaluate its potential employees based on the qualifications and competence in the positions advertised. Concepts like nepotism and discriminations are not exercised in such an organisation because the primary goal of recruiting new employees is to look for individuals with credentials that can help the organisation to improve its performance. Since an organisation that embraces CSR acquires all the necessary tactics of recruiting new employees, it is evident that issues like up-to-date evaluation criterion are prioritised. This helps the organisation in recruiting the appropriate individuals to fill in the various positions in the organisation. The recruitment process is normally a set of steps that begin with evaluating organisation’s mission and vision statements and objectives of recruiting new employees. This ensures that the organisation is not under staffed or over staffed. The other concern is on how an organisation can benefit from application of CSR when promoting the already existing employees. It is apparent that CSR requires organisations to follow ethics when carrying out promotions of their employees to various positions. Basically, there is a criterion that is followed when promoting the already existing employees. This criterion must put into consideration all the relevant points required in order to promote an employee. In this regard, it is arguably true to note that CSR plays a great part in enhancing recruiting efforts. Good public relations One of the primary goals of CSR is to ensure that the organisation builds up corporate and product image in order to cultivate good public relations. This is achieved through various concepts within the organisation. Firstly, it is crucial for organisations to have a workforce of management that fosters good public relations. This should first be concerned in enhancing good customer service. In addition, the issue of environmental, social and governance plays a great part in dictating the kind of public relations an organisation cultivates. For example, an organisation that embraces environmental issues especially in the effort to conserve the environment tends to cultivate good public relations. Social responsibly involves support of local based projects that enhance cohesion and productivity in the community. Studies have also documented that organisations that have better governance issue tends to cultivate good relations with not only the employees and shareholders, but also with the customers and the larger community (Schwartz and Saiia 18). Most organisations that endorses CSR in their operations prioritises on customer focus. This is the focal point because at the end, everything that is done should ensure that the customer is satisfied. This chain of customer satisfaction begins with satisfying employees, who in turn get motivate in producing quality products or services, and have good professionalism when serving the customer. Conversely, when the customer is satisfied with the service, they spread the word about the organisation’s professionalism and good quality. Such news spreads all over to the larger community. It is also apparent that an organisation that adopts CSR in its operations becomes famous and has good reputation in the eyes of the public. Therefore, in another dimension, such an organisation finds it easier to expand its business operations in other new areas. It can easily take over the market in these areas where the old and existing organisations fail to utilise CSR in their operations. This means that such an organisation will in turn increase its sales thus maximising its profits. Therefore, it is apparent that the adoption of CSR extends the advantages in to an organisation in relation to expansion of the business to new areas. Greater productivity and quality The use of CSR ensures that organisations upholds and maintain high quality of their products or services. For example, an organisation that want to maintain competitive advantage has to ensure that its products or services are of high quality. This will attract new customers and create loyalty to the already existing customers. Besides, when the issue of greater productivity and quality is well articulated upon, it is clear that various concepts of CSR are brought on board in order to have this goal realised. For example, in order for an organisation to have greater productivity, the issue of good governance (which is part of CSR) is highly prioritised. This means that the organisation’s internal organisation and management is well structured and managed in order to efficient and effective operations (Cosans 396). In addition, all issues such as employees wellness are well looked at. Studies have documented that when employees are satisfied or have good working conditions in a certain organisation; they tend to work hard in order to produce top quality in their line of duty. It is also apparent that an organisation with good CSR policies ensures that every legal formalities required to be followed are all adhered to. This has a greater advantage in ensuring productivity and quality because unlike those organisations that have numerous unlawful operations, which put the organisations at spotlight, an organisation that abides by the laid down policies runs smoothly. This means that the much time and resources used during petitions and other unlawful intrigues is utilised in increasing productivity and quality. Product safety and decreased liability When attention is given to issues pertaining CSR, an organisation tends to build reputable corporate and product brand. Customers have trust and become loyal to a brand of an organisation that emphasizes on quality. Besides, due to high completion in the market, organisations that fail to endorse the issue of CSR tend to lose the trust of their customers in relation to quality and customer service experience. In light with this, product safety is experienced when customers are confident that the organisation offer exceptionally good quality in relation to their needs. The organisation should also be in a position to develop new products based on the market research that identifies the current customer preference. This way, the knowledge of customer expectations is prioritised and the organisation can be sure to have the safety of their products maintained. Studies have also documented that organisations that extends their CSR functions to cover social issues affecting the community tends to enjoy the loyalty of the customers towards the organisation’s brand (Bejou 6). This means that the community will always stick to the product of the organisation that looks at the social welfare of the community, thus creating product safety. An organisation that uses CSR in its operations decreases liability. Thus is arguably true because, for example, application of governance by an organisation reduces instances of low or poor performance by employees and also reduces instances of unlawful operations. This implies that costs incurred during lawsuits or acquiring new workforce after the old one fails to perform is reduced or completely eliminated. In addition, it is apparent that issues that emanate from failure by organisations to honour the issue of CSR get eliminate. For example, failure by the organisation to motivate employees can lead to low quality of its products and customer service, something that can lead to low sales and profit margins. When this happens, the organisation may resort to acquiring loan to boost its business operations. This becomes a liability to the organisation. Conclusion Corporate Social Responsibility that is used to refer to a process where an organisation’s performance is measured through economic, social and environmental parameters. Corporate Social Responsibility is made up of constituents, which are necessary in making impact in both the companies and the society. In relation to reputation, CSR is involved in ensuring that it management any reputation risk that may tend to harm the image of the company in one way or another. Essentially, every company or organization must be in a position to practise pure business ethics that are crucial in the market. Good business ethics ensure that the company is able to handle various groups of customers in the market professionally. It is generally argued that companies are made up of workforces in relation to the kind of products that the company puts in the market. CSR is crucial as it ensures that through the activities that certain companies engage in there is assurance of having a strong attracting power for employees and at the same time being able to retain them hence benefiting the company. Works Cited; Bejou, David. Compassion as the New Philosophy of Business. Journal of Relationship Marketing (2011).10, 1-6. Print. Cosans, Christopher. Does Milton Friedman Support a Vigorous Business Ethics? Journal of Busines Ethics. (2008).87, 391-399. Print. Mulligan, Thomas. A Critique of Milton Friedman's Essay.' The Social Responsibility of Business to increase its Profits. Journal of Business Ethics. (1986).5, 265-269. Print. Roberts, John and Baker, Max. All in the mind? Ethically Identify and the Allure of Corporate. Journal of Business Ethics (2011). 101, 5-15.Print. Schwartz, Mark and Saiia, David. Should Firms Go” Beyond Profits"? Milton Friendman versus Broad CSR. Business and Society Review. (2012). 117, 1, 1-31. Print. Read More