Evolution of corporate social responsibility into a strategic tool - Essay Example

 Corporate social responsibility is centred on the idea of creating a shared value. Organizations and business have to consider their contribution to the society. In the modern society, companies, businesses, and organizations are aiming at creating a value to both external and internal stakeholders so as to create value in the society. Most of the companies are not aiming at just making profits, but also maintaining the loyalty of their customers. Companies are aiming at impacting the community positively. The availability of many companies providing similar services and goods allows the customers to make decisions based on several factors such as the image of the company outside the workplace. Thus, the essay critically discusses the extent to which corporate social responsibility has evolved beyond public relations into a strategic tool. Thus, making companies gain competitive advantage, strengthening company’s brand, and enhancing company’s reputation. Recently, the business world is characterized by stiff competition. Hence, for companies to win new customers or retain the existing customers, they have to distinguish themselves from other companies which are providing similar goods or services. The companies have also to create and retain a positive image to uphold their reputation. In the recent past, the public relations specialists carried out a key role in communicating on behalf of the company to the external and internal stakeholders and the media (Farrar 2008, p. 25). Creating a positive image of the company creates a strong relationship between the company and the stakeholders. Thus, corporate social responsibility is a tool that public relations specialist needs in order to maintain the reputation of the company. Ideally, implementing the corporate social responsibility policies helps your organization achieve their goals. Any company has set goals that it aims at achieving. Recently, consumers do not want to relate to companies or organizations that act irresponsibly and have unethical business practices. Thus, businesses have to ensure that they are transparent in all their operations. Additionally, organizations have to be accountable for all their actions like never before. They have to have good relations with the media to get positive coverage (Greenfield 2006, p. 14). Subsequently, corporate social responsibility means that companies have to consider the societal and ethical responsibilities that go beyond the economic responsibilities. They have to consider the needs of other stakeholders such as the local communities, suppliers, employees, and the government. For instance, a company should not pollute the environment inhabited by the local communities. Thus, ethics is supposed to be seen as a crucial component in addressing all the issues in the company. Manager in the organization should make decisions in line with moral principles and values in the society(Werther& Chandler 2011, p.47). Consequently, corporate social responsibility promotes respect of the company in the general public. As a result, companies increase their sales, attract more personnel to the firm, and enhance employee loyalty. When a company has a good reputation, more people would want to be associated with it. Thus, corporate social responsibility can enhance company’s stock price, thus making the shareholders happier and the company’s stock option more profitable (Porter & Kramer 2006, p. 78). Through CRS, companies develop and enhance relationships with different stakeholders such as the suppliers and customers. Employees also feel that they are part of the company when they are treated in a good way, and the company accounts for all their work. Ideally, corporate social responsibility focuses on three main areas. They include ethical labour practices, environment, and philanthropy. In philanthropy, companies are supposed to show that they are socially responsible by donating to local and national charities. Companies should identify any need person in the society and involve themselves in charitable activities. In the environment, companies are supposed to be responsible for all their actions. They should not engage in activities that lead to pollution of the environment. Companies should engage in activities that result in the conservation of the natural resources for the benefit of the society. In ethical labour, companies are supposed to treat their employees ethically and fairly (Reich 2007, p. 32). Additionally, companies are supposed to be in a position to account for their environmental and social impact. They are supposed to be in a position to come up with policies that integrate responsible practices in all their activities. Afterward, companies should come up with policies that aim at implementing the set standards for corporate responsibility. Thus, companies should aim at improving the lives of the people around them. In most of the companies, sustainability, and environmental control have become an issue of concern in relation to CSR. Stakeholders of the company challenge them to come up with a strategy of how they will sustain their economic prosperity while at the same time taking care of their employees, customers, local communities and the environment (Savitz& Weber 2006, p. 21). Evidently, companies cannot work in a vacuum. They have the internal and external publics who highly depend on their goods and services. Thus, they have to put into consideration the traditional values of the societies that they are operating. Companies have to respect the cultural values and the norms of the society around them. Companies have to come up with strategies that will help enable them be known to the external public (Werther& Chandler 2011, p. 47). The activities they carry out and how they plan to meet with the interest of the external public. Consumers will purchase a product from a company based on the perceived social performance. The image of the company greatly influences the purchasing power of the consumers. Recently, investors also have come up with criteria for accessing the company’s performance. They make a decision to invest in a company based on the ethical concerns. When companies are selling and buying stocks of other companies, ethical consideration is a key factor (Zadek 2004, p. 121). Skilled employees want to be employed by a company that provides good working conditions. Additionally, employees will deliver better services when they are provided with good working conditions. Suppliers want also to be handled in a socially responsible manner. Some of the companies also have come up with a code of conduct to ensure that they maintain their reputation in the external public. Incorporation of corporate social responsibility in a company improves the financial performance of a company. More investors will be willing to invest in a company that maintains its social responsibility. Additionally, for the non-profitable organizations, they get more sponsors. Through corporate social responsibility, a company increases its sales and enhances the customer loyalty. Regardless of the stiff competition in the current societies, customers will be loyal to a company that is socially responsible. Through that, a company increases its sales. Corporate social responsibility results in workforce diversity (Zadek 2004, p. 129). Employees will be ready to be employed in a company that caters for their needs and provides good working conditions. Companies are supposed to be socially responsible even in the supply chain. For instance, they should not import timber that has been illegally harvested. They should be ready to take care of the environment at all the stages of production (Werther& Chandler 2011, p. 42). Companies should invest in greater use of the renewable resources in order to protect the natural resources. Additionally, they should ensure that there is an integration of the environmental management tools such as eco-labeling and coming up with environmental management standards. CRS is rooted in the global business agenda. In the modern society, there are five main trends that increase the relevance of corporate social responsibility. They include growing affluence, globalization, ecological sustainability, brands, and improvements in the communication technology sector. In ecological sustainability, human activities are causing more damage to the environment. Thus, the society always advocates for companies who are ready to prevent activities that cause damage to the environment. Additionally, globalization is a fact to consider as all the business activities have become globalized. People purchase goods and services online (Freeman 1984, p. 45). Thus, companies have to ensure that they have a good reputation to gain trust from the customers all over the world. Furthermore, for corporate social responsibility to take root in the companies, they need to improve their communication strategy. Companies have to ensure that they have a good relationship with the community and the media. Nowadays, most of the companies use the social platform to familiarize themselves with the external publics (Lea 2002, p. 11). Thus, the company has to improve its communication strategy and use the modern technology to reach the target audience. The stakeholders also give their suggestions through the social platforms. Additionally, companies have to come up with quality brands to improve the image of the organization. Recently, people have focused on purchasing quality goods and services. Moreover, companies have to have transparency and dialogue in all their operations. The stakeholders have to know what is happening in the company. All the actions that involve the external stakeholders should be on the lame light. Stakeholders whether external or internal, always want to feel that they are part of the company. Involving stakeholders in decision-making make them feel that they are part of the company. Companies also have to provide management training sessions. As a result, the management team will learn how to incorporate corporate social responsibility strategies in all their undertakings (Freeman 1984, p. 46). In addition, corporate social responsibility is based on core values, sound ethics, and offers clear business benefits. Through corporate social responsibility, companies learn how they can carry out all their activities effectively. Corporate social responsibility rests on three main fundamental pillars which include ecological balance, social progress, and economic growth (Lea 2002, p. 10). Companies have to ensure that all the activities they carry out lead to economical balance and at the same time preserve the natural resources. Corporate social responsibility is an engine for social progress. Hence, companies live up to their responsibilities as global citizens. They not only focus on making profits, but also engage in activities that lead to the growth of the society, for instance, involving themselves in charitable activities. Ideally, companies admit the fact that social responsibility is more than just the ethical duty of the companies. Business and the society are not independent they both depend on one another. Thus, companies should not work in isolation and forget about their role. The efforts for business to build a better future is encouraged and recognized by the society. Thus, a company should carry out activities which focus on the well-being of the society. The society is a great determinant of the future of the company. Corporate social responsibility aims at improving the lives of the workforce through providing good working conditions and improving the well-being of the society as a whole (Handy 2002, p. 52). Additionally, CSR aims at maintaining good relationships between the company and the consumers of the goods and services. Thus, companies which practice CRS have a well-laid strategy to examine all the consumer complaints. Through this, they come up with timely solutions to the consumers’ disputes. They also respect the consumer’s opinion, provide security for the consumers and also maintain confidentiality of any information given (Handy 2002, p. 51). Consumers are supposed to feel secure in all their operations. They highly determine how the other publics’ view the company. When consumers have positive comments about the goods and services the company provides, the company gains positive image from the rest of the world. In conclusion, corporate social responsibility is very crucial to the success of the business in the modern world. Through CSR, companies will protect the environment. It will be their responsibility to eliminate the emissions and achieve its maximum productivity through the use of the available resources. They will also focus on spreading the environmental preservation strategies and promoting environmental awareness. Apart from the environment, the company should also enhance the working conditions of their employees and always cater for all their needs. They should provide flexible working hours and employment opportunities. Through that the company will maximize profits and have a good image and reputation. 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