The Benefits Of Corporate Social Responsibility †Free Samples

Question: Discuss about the Benefits Of Corporate Social Responsibility. Answer: Introduction Corporate social responsibility (CSR) refers to a managerial approach that provides economic, social and environmental benefits to the society and the organization. There are controversies as to whether business organizations should accept and practice CSR policies or not. Therefore, the paper aims at determining the Business benefits that a company gets by practicing CSR policies. Possible discussions are made on arguments for and against buying CSR and limitations for using CSR. Finally, this paper offers a solution as to whether to use CSR policies or not. CSR is of great significance to the community as well as the organisation.In spite of the continued debates on whether to practice or not, it has developed, and many companies have embraced it. Other than profit making, business firms have social responsibilities to the society (Bruch Walter, 2005, pp. 55-6). The community gets information on CSR through newspaper, magazine, journal, new conference held, books, dictionaries, encyclopaedias, websites, and blogs. Business for Social Responsibility (BSR) of 1992 provides expertise on the CSR and a platform. Ethical Corporation (EC) is an organization that addresses CSR, business ethics and sustainability. EC holds conferences, debates, and discussion on responsible business practices. CSR is practiced by all developed countries and developing is taking place in emerging nations. Corporate social performance (CSP) emphasizes achievements and goals of the firm who embrace social responsibility policies, practices and results (Bernstein, 2000, p. 149). In the 1950s, CSR required a manager to act as a public trustee by balancing between effectively managing corporate resources and corporate philanthropy. Much focus was the responsibility of businesses to society. In the US, the most important social benefit was civil rights, rights of consumers, environmental movement and rights of women and the environmental movement. CSR development was because of change in social environment, businesses, academics, activists pressures and government. Arguments for CSR The long-term objective of the business is to be responsible socially by maintaining a healthy environment for future operations. Present actions affect long-term viability. Secondly, CSR will ward off government regulation.' Business hasmanagement capital, expertise, and talent. due to the failure of many to solve social problems, businesses deserve a chance (Davis, 1973, p. 317). Thirdly, pro-acting is cheap in cost and more practical than reacting to social issues (Buchholtz Carroll, 2009). Finally, business should practice CSR because of the public support. Today, businesses owe a responsibility to the stakeholders, community, and their workers. Companies need part of their profits to make things better. Arguments against CSR Friedman an economist believes that profit maximisation is the responsibility of management to its shareholders and not social problems of people. Social issues should be solved by the free market system, failure of which it is the government is liable (Valor, 2008, pp. 324-6). Secondly, managers concentration is more on finance and operation and that they lack social expertise in making social decisions (Davis, 1973, p. 315). Thirdly, businesses primary purpose is diluted, and this puts the business into the fields that are unrelated to their primary aim. Fourthly, business has enough power; there is no need for additional power (Davis, 1973, p. 319). Lastly, business will be less competitive worldwide. However traditional, these arguments were presented, and some still hold them. Benefits of CSR CSR helps in reduction of risk and cost reduction. From a survey by Price water house Coopers, 73% people indicated Cost saving benefit. This drew the attention ofmanagement on specific CSR benefit. Secondly, companies benefit from differentiation strategy. Firms focus on a cost leadership strategy to; a) improve their marketing and sales capabilities, b) improve their corporate images, and c) relationships between nongovernmental and governmental organizations is improved. (Bruch Walter, 2005, pp. 49-56). Thirdly, CSR helps in legitimacy and reputation development. The Cause marketing refers to a strategy where charitable giving relate to the benefits (Smith Alcron, 1991). The benefits include: a) enhanced brand image b) creating incentives c) improving profitability d) meet stakeholders needs Limitations of CSR practices Limited power in marketplace denies consumers ability to support firms that engage CSR. CSR strategies are not rewarded, and therefore it does not hold. To empower consumers, policy makers provide information through environmental performance and social reports (Valor, 2008, pp. 315-320). Secondly, CSR assumes a positive relationship between firm financial performance and CSR policies which may not be true. Firms engaging in CSR practices are rewarded in a financial and economic sense but ignored in other CSR investment levels (Mintzberg, 1983, pp. 3-15). CSR activities are regulated according to Williamson et al meaning there is a direct reduction in cost in SMEs firms. Regulation improves a social as well as environmental practice that is according to Valor and Williamson et al. Regulation (Williamson, et al., 2006, pp. 318-22). De Schutter (2008) called for regulation due to market failures. CSR is of major importance to the community as well as the organization. In spite of the controversies on whether to practice or not, it has developed, and many companies have embraced it. Other than profit making, business firms have responsibilities to the society. From the previous studies, it was discovered that it is more profitable when organizations practice CSR (Fortune, 2003). These advantages include; Reduced costs of operation, Attraction of new markets/ customers Enhanced brand image Balances between power and responsibility Discourages excessive regulation, Company image is improved Profit maximization Improved productivity and Company-Community relationship Therefore, organizations that embrace CSR policies are more advantageous. Thus, organizations should engage continuous CSR. References Bernstein, A., 2000. Too much corporate power. Business week, p. 149. Bruch , F. Walter, H., 2005. The Keys to Rethinking Corporate Philanthropy. MIT SloanManagement Review, Volume 47, pp. 49-56. Buchholtz, A. K. Carroll , A. B., 2009. Business and society. In: 7th, ed. Ethics and Stakeholder Management. Mason OH: South-Western Cengage Learning. Davis, K., 1973. The Case for and against Business Assumption of Social Responsibilities. Academy of Management, pp. 312-322. Fortune, 2003. Corporate Americas social conscience, America: S8. Mintzberg, H., 1983. The Case for Corporate Social Responsibility. Business Strategy, Volume 4, p. 315. Smith, D. S. Alcron, S. M., 1991. Cause marketing: A New Direction in the Marketing of Corporate Responsibility. Consumer Marketing, Volume 8, pp. 19-35. Valor, C., 2008. Can Consumers buy Responsibly? Analysis and solutions for Market failures. Consumer Policy, Volume 31, pp. 315-326. Williamson, D., Lynch-Wood, G. Ramsay, J., 2006. Drivers of Environmental Behaviour in Manufacturing SMEs and the Implications for CSR. Business Ethics, Volume 67, pp. 317-330.