The current state of CSR
Corporate social responsibility (CSR) support accountability in a business organization to various stakeholders, other than the shareholders. According to Gao and He (2017), the primary concerns of CSR are environmental protection as well as the well-being of employees both now and in the future. Today, employees and customers have become socially conscious and have shown a growing desire to working for and spending money with socially responsible organizations (Gao & He, 2017). Notably, customers are willing to pay more for products linked to charitable donations or socially responsible practices. Employees usually interpret a business’s corporate social responsibility activities as a signal that it is trustworthy and treats people well and deduce from this that the business treats its employees well. Thus, prospective employees prefer socially responsible organizations.
Concepts and issues of CSR
CSR is not the only key to every aspect of modern business operation but also profoundly integrated with an organization’s daily activity through its values, norms, and decision-making. Organizations continue to invest in and focus more on corporate social responsibility because stakeholders’ interests in the affairs of the business are increasing. In regard to this, many organizations are taking some measures to make sure that partners operate in a socially responsible way. However, it has been argued that CSR can be strategic, and whether an organization can “do well by doing good” remains a topic of discussion, especially on the connection between CSR and organizational success.
A major critique has been on the connection between CSR and organizational performance. The practicability of the CSR on the area of effectiveness in improving the performance of an organization is still an imagination. Based on this, many people have little understanding of the mechanisms through which CSR influences an organization’s result. There have been consistent reports that CSR is responsible for the financial performance of an organization with little facts to prove the same. In this part, people can argue that all the organizations that are doing well in the market are socially responsible, while the ones who are still struggling to make a profit are not socially responsible. Thus, there is still a need to prove its actual impact on organizational performance.
Impact of CSR
CSR is changing business activities that integrate sustainable development in an organization’s model. It has a positive effect on social, economic as well as environmental aspect. Sroka and Szántó (2018) posit that CSR can positively affect an organization by improving its image, building brand, and inspiring employees. Today, stakeholders want to interact with organizations that are socially responsible by protecting the environment and treating the community fairly. There is evidence that the ethical behavior of an organization exerts an increasing influence on the buying decisions of customers. CSR ensures that there is a good relationship between an organization and the community through customers and other stakeholders.
CSR ensures that organizations across the globe are involved in other operations that give back to the community. A good example of CSR operations in the workplace is setting-up recycle bins throughout the facility and minimizing the amount of paper waste. Through CSR, organizations get a platform to show their good corporate citizenship and protect it from outsized risk by looking at the entire social and environmental sphere around the organizations. Thus, CRS saves an organization from critiques about its performance, especially on ethics.
My opinion on CSR
Corporate social responsibility is important not just for the environment, society, and the world at large but for an organization’s reputation. I support the fact that CRS plays an important in creating a positive environment for a business operation that can boost performance. Employees usually perform well in a business environment that is supportive, as set through CSR. I believe that no one would like to be treated badly in an organization. No one would like to be in an unsupportive environment. Stakeholders are constantly looking beyond payment and merits, and look out for business employers whose values and operating activities link with their attributes. Therefore, to recruit and retain skilled staff, an organization is forced to enhance working conditions.
I believe CSR involves activities that seek to integrate the community in events such as raising funds for the needy, events that seek to aid disadvantaged people in society and promoting values that support a good relationship between an organization and its stakeholders. First, helping the needy in raising funds to care for their needs is among socially responsible actions. I have witnessed many organizations engage in community activities such as donating food and offering free healthcare services as a means to give back to society. Second, some businesses have helped in donating support services such as wheelchairs to disabled people.
Most importantly, I suggest that CSR should be tied to organizations’ good behavior and not entirely on giving back to society and protecting the environment. For instance, an organization can give back to society and protect the environment, and yet they engage in unhealthy business practices to raise more money.
Gao, Y., & He, W. (2017). Corporate social responsibility and employee organizational citizenship behavior. Management Decision.
Sroka, W., & Szántó, R. (2018). Corporate Social Responsibility and Business Ethics in Controversial Sectors: Analysis of Research Results. Journal of Entrepreneurship, Management, and Innovation, 14(3), 111-126.