Corporate Social Responsibility Essay Sample
Corporate Social Responsibility is the responsibility of businesses to uphold social justice, human rights, and environmental protection. It can be seen as a way for companies to give back to society by contributing to the welfare of their communities. This essay will cover how CSR is important in our society today.
Corporate Social Responsibility is important because it provides companies with the opportunity to promote ethical practice in business and benefit their communities.
Corporate Social Responsibility can be defined as “the ethical, social and environmental behavior that is expected from every business entity” (Office of Government Ethics). According to the United Nations Global Compact in 2007, Corporate Social Responsibility consists of development opportunities in business, economic development to support sustainable growth, workers’ rights and opportunities for employment, respect for community rights including health care access, environmental protections regarding water quality or air quality standards. The importance of this statement is not so much in the activities conducted by corporations but in their role in engaging communities through discourse.
Corporate businesses are really doing well across the world and some of them have even half the economic resources and wealth of the country. But these corporate business owners have some social responsibility towards the public of their country especially to eradicate the social problems. For instance, there are societies where problems like domestic violence, starving stomach without food, parching throat, dowry system, poor health, and lack of education are very common. In such areas, these corporate impart their social responsibility by giving money to get rid of the miserable conditions. From lower to higher-level corporate take part in such initiatives and always contribute to raising the level of their nation on a global scale.
If we talk about the need for social responsibility of the corporate then it cannot be forced on these businessmen and it is their choice whether they want to involve in it or not. We have so many people who are doing these good deeds in their own interest so that they can improve the situation to some extent. It is very difficult for the government of a nation to handle all these problems with the revenue collected from the people in the form of various cess and taxes. That is why Private Corporation assists the government in every way so that ultimate results can be obtained towards the welfare of the people in a given social setup.
Why does CSR matter to the economy?
One might wonder why CSR is important for the general economy, especially in a country where it seems like policy and law enforcement would help companies ensure their employees are safe and protected. There has been much research done on this topic, and I will summarize three of the main arguments made by scholars in favor of CSR today:
- Competitive Impact: A company’s commitment to socially responsible activities can positively impact its revenue and earnings growth. According to researchers, “investors perceive that these actions contribute directly to an increase in firm value.” This gives companies even more reason to invest in CSR practices. Additionally, taking part in multiple social programs can actually make businesses stronger financially by increasing both customer satisfaction and employee engagement .
- Market Orientation: By being socially responsible, companies can have a positive impact on societal issues that are important to their customers. This idea is especially relevant today as consumers increasingly want more of a voice in the brands they purchase from and invest in.
- Government Regulations: Finally, more and more often we see instances where CSR actually helps companies circumvent government interference (or at least reduce it). The 2008 financial crisis was an example where several major financial institutions that were “too big to fail” enacted programs that improved customer’s lives and even saved some people’s homes through mortgage modifications. In this case, both public opinion and policy enforcement helped the banks do what they thought was best for even if it wasn’t necessarily what was best for their bottom line.
Benefits of having a good CSR program
A company that is able to implement a successful CSR program can be beneficial in several ways:
- Better Employee Productivity: Higher employee engagement and lower turnover rates are two benefits of having an engaging work environment which typically comes from having positive relationships with management. A strong CSR program can help companies create this atmosphere and strengthen their brand loyalty, employee productivity and retention rates.
- Improved Reputation: Having a good reputation matters for businesses because trust is the foundation on which any relationship is built. By implementing effective programs that address social issues or support charity initiatives, companies will be building trust with their customers as well as society at-large. This gives them a voice they can use to speak out about important issues and also helps them to become a valued member of the communities in which they operate.
- Increased Revenue: Lastly, companies that put money into CSR practices and initiatives will often see a positive return on their investment in the long run. Whether this means strengthening brand loyalty and attracting new customers or reducing costs associated with turnover rates and waste management, businesses can benefit from investing time, energy and resources into improving quality of life for employees as well as the surrounding community.
Some of the social responsibilities that are fulfilled by the corporate are also associated with developing the infrastructure and employment opportunities in their own country. For example, the project of setting an industry can be shifted to their own nation as compared to foreign investment. It will enhance the job to the youth of that nation at the same time money will not go out of the country. Even some countries make it mandatory to their citizens to impart a good role in the development of the nation and poor people by investing and offering jobs to needy people. This helps to bridge the gulf of poverty, lack of education, and many other problems of society.
So the conclusion of the essay can be given hereafter the above discourse is that there must be proper freedom to the corporate whether they want to invest to reduce a social issue or not. This will help them to work with free will in mitigating the issue that is more serious in their area as compared to putting limits on them. Some government officials even try to take benefit of the money collected from these businessmen to fulfill their personal needs in the name of social responsibility funds. Such ill practices must be checked on time by the loyal citizens of the country and should remove all those people who want to gain the benefits of corporate money in the form of social responsibility.
If we want to have a country where everyone is sleeping with a full stomach and there is no such incidence against women which can be included in crime then corporate people must do something about it. It is the social responsibility of every citizen of a country to protect its nation from the ill situation and it could be done in a better way by those only which are having the strength of money and feeling to do so. This does not mean that a poor person is not able to give anything for the development of the country. Maintaining peace and effort to reduce the various issues is also a way to impart a role as social responsibility by a person.