EDU BLOG DRAUGHT:
Corporate Social Responsibility?
Why do corporations have a responsibility to the public? What is Corporate Social Responsibility?
Corporate Social Responsibility is when corporations and business act in the public’s best social and moral interest, and when a company holds itself accountable to them and its own stakeholders. This allows a company to be self-conscious about its own actions and how they affect the public at large, the environment, and the moral implications of its actions and the consequences those will have.
Corporate social responsibility is a fundamental component to not only a successful business but society. Companies have a role and obligation not only to financial success of the company and its shareholders but also to commit themselves to better society and the environment around them by, “including supply chains, business partners, and renewable energy usage to positively impact society and the environment in addition to turning a profit.” [6]
The idea of Corporate Social Responsibility is not newfound concept or idea it has been around for a long time and the rich history behind it has some significant weight and influence for the present and how the new generation of the business world can adhere and look to be guided by the past. “The 1930’s and 40’s when the role of executives and the social performance of corporations begun appearing in the literature and authors began discussing what where the specific responsibilities of companies.” [1] In only the 1930’s is when the the attitude and behavior corporations had began to dramatically change and develop into a more responsible and caring tone. The major shift in tone of the past should be able to guide and inspire the new generation of corporations on how Corporate Social Responsibility should be well managed and integrated into every business for making society a better place but also that can benefit and create greater opportunities for growth financially for the company.
The corporations should hold Corporate Social Responsibility not only as a necessary tenant of a well running and functioning business but also as an investment. It is a necessary component but companies if realized can use it to their advantage and consider it as a investment for the company. Corporations should “create more value for society, they are aligned with the companies’ business purpose.” [8] Corporations if they invest into the betterment of society and the environment they are directly contributing to future success and gain for them. The more they help and support communities and the environment those same individuals will also prosper and thrive and eventually directly contribute and impact the future of the company. The community will prosper grow with the assistance and support the corporation back.
Corporations can still make a profit while also helping the world, and this is what is at the heart of Corporate Social Responsibility.
[Introduction to history]
While it may not seem like it, Corporate Social Responsibility has a long history.
[Move onto slightly more specific cases, but only at a surface level]
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How does Corporate Social Responsibility affect you and the world at large?
[Bring up several case studies]
[Bring up how corporations acted in the past vs today]
[Actual real world impact]
[Elaborate on the mechanisms of Corporate Social Responsibility]
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[ADD PHOTO]
Corporations fulfilling their social responsibility create a positive impact on almost everything it touches; it allows a positive conception to loom over. It comes in many forms from aligning political and social beliefs with its customers, philanthropy, to turning a focus on protecting the planet rather than focusing on profits.
Large corporations have started to shift their focus toward the “triple bottom line” and with that we have seen, when corporations engage in corporate social responsibility, they are more able to increase their own financial standing by new and better opportunities created by trust [1]. This trust comes from the environment, which is home to the community the corporation serves, the community which the corporation is home to, and the employees who hope to have pride in the business they work for. These corporations take it all the way to the bottom, including supply chains, business partners, and renewable energy usage [5].
Trust is built within the community the corporation serves, the community where it operates, and among its employees. This trust, in turn, creates a conducive environment for the development of new and lucrative opportunities [1]. This trust is more valuable than ever in today’s hyper competitive market, corporations use their CSR as a way to help set themselves apart from competitors.
CSR is found useful in helping corporations create and maintain long term customers, employees, and public perception who may even choose to stay with the company for life. In today’s world this is important because the business environment is as competitive as ever, therefore creating and maintaining loyal, long-lasting, and prideful relationships with customers is vital. It’s needed for corporations if they want to scale by retaining their customer base with as HBR puts it, “Companies who don’t take action risk losing investment opportunities and market share”.[9]
Corporations must create and maintain a loyal customer base which will continue to buy their product and choose their product over other business’s, and do so by creating and showing the moral gap between their business and the actions of others. Targeted marketing is very expensive, but when customers understand and are thrilled by the corporations’ good actions, the customers end up serving as a source of advertisement referring people to the brand and also serve as a source of constant data feedback through having a more positive community around the business.
CSRs also help corporations by keeping them ahead of the ever-evolving societal expectations and environmental regulations. This helps them avoid potential fines, legal challenges, and damage. to their social image. Some would even argue you should aim to create more value for society than for the firm; and some are intended to create value primarily for society. Yet all have one thing in common: They are aligned with the companies’ business purpose, the values of the companies’ important stakeholders, and the needs of the communities in which the companies operate.[4]
Creating and maintaining a positive social image is hard, especially in today’s day and age but it comes with countless benefits that will help a business to recruit, produce, and grow.
How can this be useful in one’s own job?
Most people, especially those lower on the management totem in a business, may not know how Corporate Social Responsibility can be useful, or how it could be applied, to their own jobs. Fortunately, even for those at smaller companies there are still plenty of ideas and opportunities for implementing and being a part of a business’s moral and social goals.
[Talk about how the disconnect from CSR and your own job isn’t that large]
Whenever someone completes a task or comes up with ideas while working their job they do so in a moral framework; they do so in a larger interconnected world, with every action having the possibility of benefiting others and achieving good.
One place to start is to investigate the industry’s, or the job’s, best standards and practices.[10] When someone knows what others in the industry are doing, and when they know which practices have been adapted to reduce harm, they stand a better chance at reducing the business’s own harm and bettering the community. They may even have the possibility of improving upon the industry’s standards, yielding benefits not just from their own company, but for the industry as a whole.
Another method is to look at policies as they are currently implemented and practiced in reality, and to then to determine if the policies are actually achieving their social and moral goals, and if not, then to find ways of improving them. Then if the social goal is still not reached try and implement new policies which have those goals in mind.
[Talk about how to use CSR to achieve your own moral wishes at your company]
Even if the employee has no input with the development or change of policies, just completing your job helps the company achieve its social goals and by extension one’s own. If one has a desire to do good, and to help their community, then they may have the power to do that within their own current job framework.
[Talk about how operating morally in a framework can help benefit the company and by extension yourself]
[End with a small discussion on the future of CSR and how it might impact the next generation]
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Citations:
[1]: Abdurachman D, Ramdhan RM, Karsoma A, Kisahwan D, Winarno A, Hermana D. Corporate Social Responsibility: Micro Foundation Framework for High Employee Performance in a Developing Country. Administrative Sciences. 2023; 13(8):186. https://doi.org/10.3390/admsci13080186
[2] Cheung, Adrian (Wai Kong), 2016. “Corporate social responsibility and corporate cash holdings,” Journal of Corporate Finance, Elsevier, vol. 37(C), pages 412-430.
[3] Sarfraz M, Qun W, Abdullah MI, Alvi AT. Employees’ Perception of Corporate Social Responsibility Impact on Employee Outcomes: Mediating Role of Organizational Justice for Small and Medium Enterprises (SMEs). Sustainability. 2018; 10(7):2429. https://doi.org/10.3390/su10072429
[4] Webb, M.A. (2014), Business and Society Review. Business and Society Review, 119: 417-434. https://doi.org/10.1111/basr.12039
[5] Online.hbs.edu. The Triple Bottom Line: What It Is & Why It’s Important. THE TRIPLE BOTTOM LINE: WHAT IT IS & WHY IT’S IMPORTANT. Retrieved November 27, 2023, from https://online.hbs.edu/blog/post/what-is-the-triple-bottom-line
[6] Jcsr.springeropen.com. A literature review of the history and evolution of corporate social responsibility | International Journal of Corporate Social Responsibility | Full Text. A literature review of the history and evolution of corporate social responsibility. Retrieved November 27, 2023, from https://jcsr.springeropen.com/articles/10.1186/s40991-018-0039-y
[7] Hbr.org. Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Retrieved November 27, 2023, from https://hbr.org/2006/12/strategy-and-society-the-link-between-competitive-advantage-and-corporate-social-responsibility
[8] Hbr.org. The Truth About CSR. The Truth About CSR. Retrieved November 27, 2023, from https://hbr.org/2015/01/the-truth-about-csr
[9] Hbr.org. Your CSR Strategy Needs to Be Goal Driven, Achievable, and Authentic. Social and Global Issues. Retrieved December 4, 2023, from https://hbr.org/2021/09/your-csr-strategy-needs-to-be-goal-driven-achievable-and-authentic
[10] www.socialforaction.com. How to Implement Corporate Social Responsibility (CSR) in Your Businesses – A Step-by-Step Guide. Social For Action. Retrieved December 4, 2023, https://www.socialforaction.com/blog/how-to-implement-corporate-social-responsibility-csr-in-your-businesses-step-by-step-guide/