People and Organizations: The ethical context of HRM , Lecture 10

 WHY CSR TO A BUSINESS? 



On a global perspective, all the private and government organizations are ramping up the forces on social responsibility. This can be a protecting the environment, championing children's and women' s rights or prevent poverty on a local or global level. CSR activities are more attractive to stakeholders and it will affect positively for the bottom line of the organization(Strandberg, 2013) 

One of the main benefits of CSR is, CSR policies drive the organization to attract and retain their customer base, which leads to long term stability in the business. Many individuals will agree for a premium price of the goods, knowing that a certain portion of the profit will be delivered to the society. Socially responsible organizations successfully attract and retain talented employees and it can be helped to achieve substantial achievements, which will increase employee morale and productivity.

CSR can also consider as a competitive advantage for an organization to stand out from the competition. It can be a source of innovation and opportunity to do things differently from competitors and it will provide a unique identity to the organization. Based on the evolution of the economy, profits and numbers are no longer viable. Instead, investors seek companies with less harm to the environment and society. Also, CSR helps to build positive government and NGO relations, hence government regulatory initiatives can be followed with a good reputation.

 There are reasons why CSR matters in the business (Purcel, 2013)
  • consumers look for CSR because consumers think any business should give a contribution to improve its society.
  • Employees look to perform better in CSR running organizations because people would leave the organization if the organization harm environment, nothing for charity, use child labour and this will impact to absenteeism, turnover, morale, productivity.
  • CSR is a competitive advantage to the organization, this can improve opportunity, innovation and competitive advantages.
  • Investors dosent like to invest in organizations which damaged the environment.
  • CSR is a moral obligation on domestically and Globally.

Corporate social responsivity is not just a business trend and if the business needs to stay relevant to this rapidly changing economy, should have strong CSR activities. This will increase their profits and efficiency with a respectable company image (Murphy, 2019)




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Comments

  1. Jehan RahimanOctober 5, 2019 at 9:15 PM

    CSR helps to build a brand and reputation to the company which shows their interest towards the community. This also can be used as a marketing tool in global context. Nice explanation Achala.

    ReplyDelete
  2. Shamina DeenOctober 6, 2019 at 6:23 AM

    As you have mentioned in the blog CSR can be a source of innovation and opportunity to do things differently from competitors & also I think it a social responsibility towards future generation.

    ReplyDelete
  3. Nethra LiyanageOctober 6, 2019 at 9:19 PM

    Interesting article Achala .As you mentioned most of companies use CSR as a tool to gain competitive advantages over others as it increase both company’s profit and image ...

    ReplyDelete
  4. Upendra BatagallaOctober 7, 2019 at 2:05 AM

    CSR is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. Valuable article Achala. Good work.

    ReplyDelete
  5. PrasannaOctober 7, 2019 at 9:27 AM

    The ultimate goal of a true CSR is to contribute to a better society. And CSR affords firms and managers the opportunity to adjust their means of production in way that gives then competitive advantage and enhance their long term profitability as you explained above. Good stuff. Thanks for sharing.

    ReplyDelete
  6. JinendranOctober 11, 2019 at 11:24 PM

    Good work Achala, not like early periods now organizations are realize their responsibilities towards the society. CSR project will positively impact organization brand image and as you mentioned it helps to build relationship government. Thanks for sharing.

    ReplyDelete
  7. Anupama KankanamgeOctober 12, 2019 at 6:42 PM

    Agree that CSR can be taken as a competitive advantage. However focusing on CSR by leading companies will contribute towards sustainable social and environmental society. Good one.

    ReplyDelete

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