Corporate Social Responsebility Business Embark

Question: Describe about the Corporate Social Responsebility for Business Embark. Answer: Corporate social responsibility is a standard business practice that contemporary businesses embark on to make a statement in todays world and remain competitive. Commonly referred to as corporate responsibility, ethics or accountability, CSR refers to the manner in which companies integrate social and environmental concerns into the operations and running of their business which inevitably leads to transparency and improvement of the society as well as wealth creation for the company (McWilliams, 2000).For corporations that practice it, the major reason is to create an indelible impact on the society and the benefits reverberate back to the director of the corporation and all other stakeholders. It is no wonder then that companies that practice CSR strategies have higher levels of customer satisfaction due to the high standards of customer service, and they also perform better in the market. The idea of benefit the society in one way or another is important to any corporation since it means that the reputation of the company is at stake with the clients, shareholders ,suppliers, NGOs , employees and the community (McWilliams, 2000). According to Aguinis and Glavas, (2012) a corporate social responsibility strategy should engage stakeholders in impacting the society with the business, save cost and take advantage of available opportunities in the market. To do this efficiently he argues that all stakeholders have to be engaged and planning is key to the process. Some companies that are not keen on CSR policies and strategies claim that the shareholders should be the only ones benefit from the enterprise, forgetting that sustainability in the market is important for all corporations. CSR is important in this regard to show the public that they are valuable, they are transparent to the public and that employees are not neglected in the bid to make profits. Consequently, corporate social responsibility ensures business for the corporations that practice it, is sustained. In the short term, Lindgreen and Swaen, (2010) says that CSR aims to deliver profits through revenues generated, satisfied and occupied employees and low capital constraints even though many business critics are opposed to this idea. According to him, long term benefits of CSR are more beneficial to a corporation than short term. In the long term, such policies impact on the culture of the firm, innovation and other business changes that ensure sustainability in the future. CSR therefore has an objective to benefit the society while benefit shareholders and stakeholders of a corporation. Another importance of CSR is to create and maintain the corporations reputation and image in the eyes of the public through minding the community besides making profits. CSR efforts by a company can endear the company to people (Fisher, 2014). This is in regard to what the firm does to benefit the community. The overall effect is that the treatment a firm gives the public translates to sales, investors ,return customers , high employee engagement since people want to work there and referrals and recommendations by customers to other potential customers. Public image is important to a corporation since studies have shown that firms that practice it perform better and they access acquisitions more easily than those who do not. Lastly, they also influence policy makers and their decisions since thy benefit everyone around them (Navi, 2012) Advantages of Corporate Social Responsibility (CSR) for corporations It is clear that the advent of social media has given the masses a voice through which they talk about ethics of businesses and though it many organizations have been accounting for any activities they do. One of the benefits of corporate social responsibility is that it brings in new business and retains the ones that the firm already has. The reason this happens is because humans are naturally inclined to be where they feel appreciated and therefore a company that seems to focus more on the society than its profits, is more likely to attract customers, and build more networks than one that is profit oriented (Aguinis and Glavas, 2012). Consequently, the reputation of the business improves. In the same breath, another benefit is that employees are happy to work in such a positive environment, and thus, they will not leave unless in retirement as employees feel loyal. The corporation also benefits from investors who want to invest and fund the activities of the corporation as a resul t of CSR policies. In addition, a corporation sets itself apart from its competitors through CSR especially when the other firms do not practice it since all stakeholders, shareholders and the public want to be associated with the corporation (Hopkins, 2012). The media also tends to favor corporations that practice CSR due to its ethical implications. Positive publicity is always beneficial to a company. Lastly, in the running of the corporation, it benefits by saving on operational costs through reducing emissions that destroy the environment and risk management of reputation. It also allows for innovation and room for new technologies and learning opportunities since the corporation develops new products from wider scope of business through CSR. Disadvantages of Corporate Social Responsibility (CSR) for corporations There are many reasons why corporate social responsibility is deemed as a loss for corporations. According to Becchetti et al (2012).One of these is that for small corporations that are struggling to succeed financially, social responsibility is a costly activity since the attitude towards CSR is that it is charity that does not add value to the corporation. In addition, CSR strategies reduce competitiveness between small to medium enterprises. The additional costs in environmental programs and reduction in emission will cost more and thus smaller corporations prefer to back out and thus stop competing due to CSR. Thirdly, when companies practice CSR they have to consider the opinion of shareholders before embarking on it and they might be opposed to it due to the involved costs. In conclusion, there are many companies that owe their success to corporate social responsibility. One of these is Nike which has seen a rise in sales and loyalty due to implementing CSR in their operations. 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International Journal of Management Reviews, 12(1), pp.1-7. Navi, S.T., 2012. Corporate social responsibility.