CSR Summary
Corporate social Responsibility (CSR) practices are fast gaining importance as a means for companies to gain market access and customer loyalty, thus resulting in long-term business sustainability. What are the drivers pushing business towards CSR and how important is it.
CSR Summary Corporate Social Responsibility (CSR) is the continuous commitment by business counterpart to behave ethically whilst contributing to the economic economy of the country without neglecting the living standard of its society. This practice being looked into with higher importance in current times as the market and consumers takes the CSR of a corporation more serious compared to the previous decades. As a whole, social responsibilities aim to create higher living standards of society while making profit of a business establishment. It is a process for business to achieve sustainable development within societies. Dr Milton Friedman, an economist from the States once says that a business has no social responsibilities other than to maximize profits. This makes sense in the beginning as a business entity is established mainly for the reason of making profit. CSR however argues that to maintain a business profit is not solely dependent on its products and services but also its reputation of being an ethical business establishment will make consumers to be more than willing to engage a business with such establishment. Friedman was not wrong, but when this view is being looked into in current time, a business achieves higher profit in the long run when it is able to sustain a warm image with its best products and services as society are looking into the ethical image of the business before its product and services in engaging a deal. An example of such business entity for this presentation would be about Google, an entity founded by Larry Page and Sergey Brin. Google has a strong CSR reputation on being one of the top 10 companies with the best CSR reputation globally. Google has put
CSR Summary Corporate Social Responsibility (CSR) is the continuous commitment by business counterpart to behave ethically whilst contributing to the economic economy of the country without neglecting the living standard of its society. This practice being looked into with higher importance in current times as the market and consumers takes the CSR of a corporation more serious compared to the previous decades. As a whole, social responsibilities aim to create higher living standards of society while making profit of a business establishment. It is a process for business to achieve sustainable development within societies. Dr Milton Friedman, an economist from the States once says that a business has no social responsibilities other than to maximize profits. This makes sense in the beginning as a business entity is established mainly for the reason of making profit. CSR however argues that to maintain a business profit is not solely dependent on its products and services but also its reputation of being an ethical business establishment will make consumers to be more than willing to engage a business with such establishment. Friedman was not wrong, but when this view is being looked into in current time, a business achieves higher profit in the long run when it is able to sustain a warm image with its best products and services as society are looking into the ethical image of the business before its product and services in engaging a deal. An example of such business entity for this presentation would be about Google, an entity founded by Larry Page and Sergey Brin. Google has a strong CSR reputation on being one of the top 10 companies with the best CSR reputation globally. Google has put
References: Baker, M, 2004, Corporate social responsibility – what does it mean?, accessed 19/10/13, http://www.mallenbaker.net/csr/definition.php BSD Global, 2013, Corporate Social Responsibility (CSR), accessed 19/10/13, http://www.iisd.org/business/issues/sr.aspx Carina, A & Sofia, G, 2008, CSR Structure of Responsibility, accessed 19/10/13, http://www.diva-portal.org/smash/get/diva2:3825/FULLTEXT01 Corporate Watch, n.d, The Arguments against CSR, accessed 19/10/13, http://www.corporatewatch.org.uk/?lid=2688 Whitman, M, 2013, Benefits of Corporate Social Responsibility, accessed 19/10/13, http://sustainablebusinessforum.com/sbtoolkit/179556/benefits-corporate-social-responsibility