Corporate Social Responsibility (CSR) is a professional method that pays to maintainable expansion by providing monetary, communal and environmental benefits for all the investors. In simple words corporate social responsibility is how corporations achieve their business procedures to create an overall positive impression on public.
Literature Review of CSR
Sustainable development has been done systematically by researchers over the past 40 years, and has changed the citizen and regime official hope for the success of a development that will not have hostile effects and will not abolish, but rather will defend natural and social resources at the cost that will not reduce the financial benefit. Companies discover this change and in order to adapt the powerful pressure level both of the globalized citizenship and the society of citizens accepted the term Corporate Social Responsibility.
As time passed, the term sustainable development and corporate social commitment were combined, converged and are alleged in the business field as synonymous. This is braced by many scholars among which are Keizer’s. Who revealed that the idea of Corporate social responsibility and corporate sustainability have followed diverse courses that have recently met, Marwick who authorizes the connection of the two concepts and then comes the Montiel who presented the idea that both the context and the actions of Corporate social responsibility and Corporate sustainability seems to converged, even though there are some dissimilarities between the two ideas. Following International Initiatives, for example European and local CSR strategies, the effect of CSR on international standards by Global reporting has clasped, and along withy that the report which started to strongly second the association between Corporate social Responsibility and corporate efficiency. The number of society that started to adopt it or follow it has risen.
The terms like corporate social responsibility, Corporate social performance, Corporate sustainability, Strategic Volunteerism have intruded the business literature since long and their incorporation with marketing strategy is being seen as an effective socio-marketing strategy. (Turban & Greening, 1997).
The corporate social Responsibility origin has been gradually in image and in demand for its bigger transparency and performance (Ogrizek, 2002).The establishments are being seen to show remarkable concern in striving social initiatives in a highly competitive setting.
Furthermore, the growth in socially liable investments and in CSR awareness among public have led to the idea that winning firm of future can be the companies which triumph their short term money goals with semi-permanent sustainable company complete building.
The aspects that are driving this move towards company social responsibility comprise a new concerns and expectations of stakeholders, citizens, consumers, public authorities and investors. Guidance of social criteria in the investment decisions of the people and institutions each as consumer and as investor has improving concern regarding the harm caused by the economic activities to the environment and along with that the transparency of business activities brought about the media and trendy information and communication technology.
CSR role as Marketing Tool
Executing CSR strategies or policies can go a long way in stimulating both customer and employee consultation. Incorporating CSR in a business model, work as a mechanism to reach out to the public in a new means, getting people talking, sharing and eventually consuming more. Projecting the image of ethical exercise such as sustainable sourcing, just treatment of employees and being charitable, can focus the public glare onto these praiseworthy insurance. People would stop purchasing a product if they know of a corporation unreliable business practice session while other would buy a product with a social and environmental benefit, if given the chance.
The saying “a happier workforce is a more productive workforce” is as true as ever and has confirmed gains in increasing employee creativeness. According to a study carried out by Dale Andrew Carnegie and MSW Research business firm with faculty that feel more involved in performing better than ship’s companionship with uninvolved employee by up to 202 percent. Furthermore, CSR policies create a positive work environment, which is favorable for retaining staff and talent. A company’s interest with non-governmental organization can go a long way in engaging employee .There is a growth trend of companies approving gift-matching practices.
Many researchers also note that CSR is connected with marketing as it helps to promote a company reputation. A research completed in 2000, showed that seventy % European consumers identify directly the significance of the commitment made by the companies towards the society, while 1 unity out of 5 stated that they were willing to give more for a product approaching from a more “medium” company. From this viewpoint it is clear that today the reputation and value of the brand are more important now than they were before.
A strategically established, correctly applied CSR program can directly increase a brand’s capability to build and sustain a positive image in the consumer mind. Timothy Creel explains. “Recent studies indicate that companies involved in socially responsible activities tend to display long-term financial gains and rise in value.” The main reason behind that CSR forms brand equity is mostly psychological. And as Creel explains it, “Positive feelings are linked to social acceptance and self-respect. Brands that induce positive feelings make customers feel better about themselves.”
Some more branding-related benefit of CSR is the logic of public it creates. Creel presented to how Lowe’s gives materials and offers volunteer hours to Habitat for Humanity, which permits the company to build connections in native communities. These connections fuel the brand’s image and outcome in improved connectivity. Eventually, an obligation to serve others has an influence on sales. According to a survey from Better Business Journey, 88 percent of customers say they are more willing to buy from a company that supports and involves in events that develop society.
November 18, 2018