IntroductionCommunication regarding corporate socially and ethical responsible programs are possible to cause strong and always positive responses among stakeholders. With the fast growing competition in the corporate world, various firms are striving to find and implement strategies that can differentiate their practices and activities. One of these approaches is corporate social responsibility, which is known to be highly beneficial to the businesses, environment, and the community at large. This paper intends to explore some of the benefits of the corporate social responsibility to business organizations, community, as well as the environment.
Definition of Corporate Social Responsibility In spite of growing significance of corporate responsibility, there is a debate regarding the meaning of the phrase, as there are various names used to imply the same including Corporate Citizenship, Corporate Social Responsibility (CSR), Corporate Accountability, and Global Citizenship. Whereas some people can argue about the differences among these terms, about the center they all mean the same principle that an organization is responsible for the provision of more advantages than simply profits to its shareholders (Economist Intelligence Unit 2005). It has a duty of treating its workers will, developing appropriate corporate governance, maintaining environment, supporting philanthropy, promoting fair trade, promoting human rights, and respecting cultural diversities among others.
All these roles are aimed to create a positive effect in the cultures, communities, environmental, and societies in which firms operate. Besides, Economist Intelligence Unit (2005) indicates that these efforts must also be beneficial to a firm’s different stakeholders who give all or some of the employees, consumers, executives, investors, vendors, lenders, non-executives, executives, suppliers, charities, foundations, NGOs, religious groups, local communities, and cultural organizations.
According to the ASOCIO Policy Paper (2004), CSR has becoming more vital to firms both nationally, and internationally. As globalization grows and big companies function as world providers, the organizations have increasingly realized the benefits of giving CSR programs in their different places. Therefore, CSR activities are presently in progress across the world. Furthermore, ASOCIO Policy Paper (2004) suggests that some of the drivers of the increasing CSR include social investment, enlightened self-interest, trust, and transparency, increased public expectations of organizations. CSR has numerous benefits towards the organization, environment, as well as the community.
Benefits of social responsibility corporationsAccording to Hohnen (2007), there are numerous benefits of CSR towards a business. To begin with, CSR helps in ensuring better management and anticipation of an ever-growing range of risk. The effective management of governance, social, legal, environmental, economic among other risks in a more multifaceted market environment, with larger stakeholder and oversight inspection of firm activities. A company benefits from CSR by improving the anticipation and management of risks. This is possible through consideration of parties’ interests concerned about the corporate effect.
Secondly, Ma (2012) asserts that CSR is also crucial to the business growth, as it enhances its reputation management. This implies that firms that are involved in social responsibility benefit by gaining a strong and positive reputation in the society. This is because institutions and communities tend to associate with organizations that care about their welfare by offering any form of support. Moreover, those firms with high performance as regard corporate social responsibility tend to build their reputation. On the contrary, those organizations that perform poorly ma damage their brand and the value of the company upon exposure.
Brand equity, or reputation is realized in values like credibility, trust, quality, reliability, and consistency. In fact, organizations that lack direct retail exposure via brands, their brand equity for handling CSR matters as a bad and good partner of supply chain, may be essential to the business growth.