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Focusing the Study - Essay Example

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Organizations which do not mind the society in which they do business may not survive and their future sustainability cannot be guaranteed. The research…
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Focusing the Study Management   Introduction The aim of this research will be to evaluatethe impact of Corporate Social Responsibility (CSR) on business performance. Organizations which do not mind the society in which they do business may not survive and their future sustainability cannot be guaranteed. The research will focus on specific key questions and will be guided by a conceptual framework to establish the relation between corporations’ turnover, market position and customer base with their CSR practices.
Quantitative and Qualitative Research Articles
Corporate social responsibility is a prevalent practice with far reaching implications in nearly all sectors of society be they; academic, business or public sectors. Two distinct studies all base their research on the subject although with different approaches and purposes. A qualitative study by Mohr, Webb and Harris titled ‘Do Consumers Expect Companies to be Socially Responsible? The Impact of Corporate Social Responsibility on Buying’ attempts to focus on the problem of whether corporate social responsibility actually impact profitability within organizations, (Mohr and Webb, 2005). The key questions asked within the study include; whether from consumer’s perspective corporations have to be socially responsible to society; the nature of this responsibility; how much knowledge consumers think they have on the level of the social responsibility of the firms; if the consumers really care of the firm’s social responsibilities and what motive consumers actually attribute to corporations that participate actively in society’s affairs. The paper uses a number of methods including in-depth interviews and has the purpose of coming up with a clear understanding on what the public expects on these corporations with regards to social responsibility, (Mohr and Webb, 2005).
The second study titled ‘Corporate Social and Financial Performance: A Meta-analysis’ by Orlitzky, Schmidt and Rynes uses a quantitative approach in assessing the relationship between the corporate social performance and the resulting financial performance. The quantitative study conducts a meta-analysis of 52 studies with a total sample size of 33,878 observations, (Orlitzky, Schmidt and Rynes, 2003). The study’s specific objectives were to provide a statistical integration of accumulated research between CSP and CFP, examine key determinants of both CSP and CFP and integrate empirical research in the context of diverse studies. The Hypothesis stated that ‘Corporate Social Performance and Financial performance are generally related across a wide variety of industry and study contexts.’ Their results indicated that corporate social responsibility was likely to pay off since there was a generally positive association between corporate social performance and corporate financial performance, (Orlitzky, Schmidt and Rynes, 2003).
The Study
In this study, the researcher will focus on the topic: Evaluating the Impact of Corporate Social Responsibility on Business Performance. The research will specifically focus on defining the existing trends of measuring business performance in relation to strategy, the key indicators of business performance more specifically; shareholder value, market share and revenue and how they are directly or indirectly affected by Corporate Social Responsibility and approaches that can be used to measure the impact of Corporate Social Responsibility on actual business performance.
The article by Orlitzky, Schmidt and Rynes (2003) suppose that an organization’s corporate social responsiveness coupled with their policies and programs often has direct observable outcome on its actual performance. This is also supported by Mohr and Webb, who argue that CSR programs initiated by firms, changes positively, the image of the company in the eyes of consumers. The research questions are selected with the aim of narrowing the focus of the study, (Creswell, 2002).
Conceptual Theoretical Framework
Conceptually, corporate social responsibility can either be defined on the basis of delineating the major responsibilities of companies or based on the concept of societal marketing, (Mohr and Webb, 2005 and Smith and Langford, 2009). Based on the first approach, CSR is analyzed on the key responsibilities which includes economic, ethical, legal and philanthropic with each of the dimensions being viewed in relation to the companies’ customers, employees, owners, and the public. The second approach views CSR as a measure of doing business in ways that improve or maintain the well being of the society. Business performance will theoretically be analyzed based on a business’ state of affairs including its successes, future outlook and development. The study will be guided under the framework of establishing both the direct and indirect approaches of measuring the impact of CSR on business performance.
In summary, the research will focus on key issues such as the nature of social responsibility within organizations, consumer’s perceptions on firm’s corporate social responsibility practices, and the relationship between these practices and actual business performance. The currently existing trends of measuring business performance, the key indicators of business performance in relation to strategic option and the approaches used to measure the impact of corporate social responsibility on business performance will the focus of the study.
Creswell, J. W. (2002). Research Design: Qualitative, Quantitative and Mixed Methods
Approaches. Sage Publications.
Mohr, L. A. and Webb, D. H. (2005). Do Consumers Expect Companies to be socially
Responsible? The Impact of Corporate Social Responsibility on Buying Behavior. Journal of Consumer Affairs, 35(1): 45-72.
Orlitzky, M., Schmidt, L. F. and Rynes, S. L. (2003). “Corporate Social and Financial
Performance: A Meta-analysis.” Organization Studies, 24(3): 403-441.
Smith, V. and Langford, P. (2009). “Evaluating the Impact of Corporate Social Responsibility
Programs on Consumers.” Journal of Management & Organization, 15(1): 97-109. Read More
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