The Principles of Corporate Social Responsibility Concept - Assignment Example

The Principles of Corporate Social Responsibility Concept Introduction The principles of corporate social responsibility concept have been a part of enlightened business strategy for a very long time, and it is not a new phenomenon. There have been controversies with regards the use of CRS. Some scholars argue that CSR is a Public Relations exercise while other maintains that CRS is the bottom-line issue and not a Public Relations exercise. Such scholars have clearly pointed out that corporate social responsibility is away that companies not only benefit themselves but also benefit the entire society. Currently, it has become a focus for many companies due to its continuing commitment to help businesses contribute to economic development by being responsible to their respective stakeholders (Hancock, 2005, 12). The greater part of the CSR has helped manage or improve environmental and social impacts of the company. The increased use of CSR has encouraged the corporate sector to be more environmentally and socially responsible particularly at a time when the crisis has damaged consumer’s level of trust on the operations of the company. This coupled with the rise in transparency and social media has facilitated companies to begin taking CSR more seriously in order to help reduce their environmental impacts (Louche et al, 2010, 209). Discussion Corporate social responsibility has helped enterprises to contribute to highly competitive social market economy and sustainable development. Responsible business conduct has helped many private sector operators to provide public services. For instance, they have provided employment opportunities, social amenities as well as sustainable, smart and inclusive growth (Mullerat & Brennan, 2011, 29).  CSR has facilitated engagement with both external and internal stakeholders thus enabling businesses to take advantage of societal fast-changing expectations as well as operating conditions. The enterprises have acted as drivers for the emergence of other markets and the development of real opportunities for growth. Companies normally commit responsible investment on various sectors of the economy to enhance the social welfare of their stakeholders. This results to economic growth thus improving the living standards of the stakeholders (Mullerat & Brennan, 2011, 89). Corporate social responsibility planning has come to the forefront for major companies’ future growth opportunities. Their increased investment in CSR initiatives, for instance, environmental initiative, has been very attractive in inducing economic stimulus of a country while at the same time achieving solid CRS goals. Environmental CSR initiatives have impacted energy use effectiveness, water use footprint and climate change. It has motivated the marketplace’s competitive landscape to rethink product designs, improve operational efficiency and search for new and innovative technology. As a result, the companies have achieved energy efficiency and effective resource management that have lead to opportunities for revenue generation and cost savings. Economic downturn notwithstanding, companies have been encouraged to continue investing in environmental initiatives so as to facilitate long-term growth (Louche et al, 2010, 208). A CSR program has aided recruitment and retention of employees. Potential recruits of a company particularly the competitive graduate student market, normally looks at its CSR policies. CSR delivers a much more positive perception of the company among its workforce, especially when they are involved through community volunteering or payroll giving fundraising activities (Hancock, 2005, 15). It has recognised for promoting customer orientation amid customer-facing employees. In addition, it has been credited for assisting in team building, allow staff to develop new skills and improve their motivation, all these have led to increased productivity for the company. Employee involvement or engagement has aided in retaining staff because happier staffs are always proud employees with a profound level of loyalty to the company. CSR has helped in building long-term consumer, citizen and employee trust which a foundation for sustainable business model. Consequently, it has created a favourable environment in which businesses can grow and innovate. Therefore investing in external and internal training assists employees do a better job, high-quality products and good service delivery, due to improved social welfare. A clearly spelt out CRS goals and vision attract employees with shared values thus giving the company competitive edge when competing with its rivals over talents (Hancock, 2005, 20). CSR has resulted to a better environment. This includes proper waste management, balanced ecosystem and clean and green environment. Corporations have adopted environmentally sustainable business practices which have maximized benefits and minimise detriments (Louche et al, 2010, 209). Such activities include recycling of electronics and adoption of business plans that shun the use of destructive practices or dangerous chemicals. A company that fails to adopt universal policies relating to the environment faces bad publicity. Dell is an example of such an organization. The company decided to recycle computers in Europe but not in the US because it is required by law in the EU. The company had to begin recycling any computer that a consumer brought to them to enhance their public image. Corporate social responsibility, therefore, helps a company to be more conscious of their moral and social responsibilities thus helping them save their positive public image (Mullerat & Brennan, 2011, 69). The company’s management should focus on internal efforts to integrate worldwide agendas and policies that will direct it towards environmental goals. The company is, therefore, able to implement strategies that require its commitment and determination to improve its impact on the environment, for instance helping in lowering carbon dioxide emissions thus alleviating the greenhouse effect. For example, Motorola in cooperation with their suppliers designed a waste management system to reuse its compact system hence reducing its compact waste more than 140 ton each year thereby saving more than $ 4.3 million. Finally, CSR is not just a public relation exercise because it helps in future sustainability of the business (Hancock, 2005, 14). It can lead to cost reduction to business by ensuring that the company invests less in traditional advertising and more effective management of potential liabilities and risks, both of which provides for the future of the business. CSR fosters long-term thinking of a company by looking at its long-term interest thus ensuring that the future of the company is well sustainable (Louche et al, 2010, 211). It enables the company to shift from worrying about the company’s financial results of next fiscal year to the impacts that today’s business decisions have on social and financial results ten years from now. Conclusion CRS is the bottom-line issue and not a Public Relations exercise. It has helped enterprises to contribute to highly competitive social market economy and sustainable development. It has enabled firms to enhance the social welfare of their stakeholders thus retain their employees. In addition, it has resulted into proper waste management, balanced ecosystem and clean and green environment. Finally, it helps in future sustainability of the business. References Hancock, J. (2005). Investing in corporate social responsibility: a guide to best practice, business planning & the UK's leading companies. London [u.a.], Kogan Page.12 Mullerat, R., & Brennan, D. (2011). Corporate social responsibility: the corporate governance of the 21st century. Alphen aan den Rijn, Kluwer Law International. Louche, C., Idowu, S. O., & Leal Filho, W. (2010). Innovative CSR from risk management to value creation. Sheffield, UK, Greenleaf. 209 Read More