Introduction
(Compass, n.d.)
What is Corporate Social Responsibility?
“Corporate social responsibility (CSR) can be defined as a
self-regulating business model that helps a company be socially accountable to
itself, its stakeholders, and the public.” (Invetopedia, 2019) This simply means the approach
that the business takes to allow for development by performing positive social,
environmental and economic tasks.
Corporate Social Responsibility are performed
by many companies to achieve a positive image in society, a competitive
advantage and to promote brand awareness. A positive image will create a
competitive advantage for the company while promoting the brand ensuring
success. This allows for customer
loyalty leading to an increase in sales. The environment and communities also
benefit from the CSR activities performed by companies. Some activities include
charitable contributions and greater use of renewable resources so as to reduce
wastage. I believe that one disadvantage of CSR is that small companies will
not be able to perform these activities due to lack of finance creating a
negative outlook from the public. This will cause the company to lose customers
leading to a decrease in profits. Performing Corporate Social Responsibility
can also be considered very expensive leading to a reduction in profits. From
this we can understand the importance of CSR, since it can both build and
destroy a company image.
“Corporate
Social Responsibility also aims to ensure that businesses behavior in an
ethical way.” (SERVICE, 2018) This simply means
taking into account social, economic and environmental impact, and
consideration of human rights.
(Invetopedia, 2019)
The Responsibilities of CSR
According
to Carroll’s CSR pyramid, the four responsibilities of CSR are:
- Legal responsibility
- Philanthropic responsibility
- Ethical responsibility
- Economic responsibility (tudor2u, 2019)
If you have any questions or any additional ideas which you feel i missed please comment below.
References
Compass, G. (n.d.). 5 Inspirational Examples of
Corporate Social Responsibility in Marketing Giving Compass. Retrieved
from 5 Inspirational Examples of Corporate Social Responsibility in Marketing
Giving Compass:
https://givingcompass.org/article/5-inspirational-examples-of-corporate-social-responsibility-in-marketing/
Invetopedia. (2019, February 11). Corporate
Social Responsibility (CSR). Retrieved from Corporate Social
Responsibility (CSR) - Investopedia:
https://www.investopedia.com/terms/c/corp-social-responsibility.asp
SERVICE, C. (2018, April 20). What is corporate
social responsibility? Retrieved from CSR and ethical careers information
resources:
https://www.ed.ac.uk/careers/your-future/options/occupations/csr/what-is-csr
tudor2u. (2019). Carroll's CSR Pyramid.
Retrieved from Carroll's CSR Pyramid: https://www.tutor2u.net/business/reference/carrolls-csr-pyramid
