CORPORATE
SOCIAL RESPONSIBILITY (CSR)
QUESTION: WHAT
THE BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY (CSR) FOR AN ORGANIZATION?
Corporate
Social Responsibility (CSR) is also known as corporate citizenship, social
performance or responsible business. It is form of corporate self-regulation
integrated into a business model. These functions of policy are as a built-in,
self regulating mechanism whereby a business monitors and ensures its active
compliance with the spirit of the law, international norms and also ethical
standards. Corporate Social Responsibility (CSR) is about how companies manage
the business processes to produce an overall positive impact on society.
By implemented CSR policies in the
organization, it will be gives the benefits thus can help the organization for
improved the business besides to gain the opportunities. CSR may be based
within the business development, human resources or public relations
departments of an organization. But some organization may implement CSR
policies without a carefully or clearly defined team or programmed.
Based
on human resources, a CSR can be an aid to retention and recruitment which is
particularly within the competitive graduate student market. This potential
recruits basically ask about a firm’s CSR policy during an interview and having
a comprehensive policy that can give an advantage. Besides that, CSR can help
improve the perception of a company reputation and standing where its staff can
become involved through community volunteering, fundraising activities or
payroll giving. It is found to encourage customer orientation among front-line employees.
Next is about the risk management
where the managing risk is a central part of many corporate strategies. The
company reputations which is take decades to build up, it can be ruined in
hours through incidents such as corruption scandals or environmental accidents.
The risk of management also can draw unwanted attention from regulators,
courts, governments and also media. By building a genuine culture of doing the right
thing within a corporation is can be offset these risks towards the business
and company.
According to Millward Brown where
this company focused on brands, media and communications, “Brands that are
perceived as being different have a much higher potential for growth than do
other brands.” Thus, identifying and communicating meaningful points of
difference has become the focus of much strategic branding work. In this market
global, companies strive for a unique selling proposition which is can be separate
them from competition in the minds of consumers. CSR function is to play a role
in building customer loyalty that based on distinctive ethical values. For
examples, The Body Shop Company is built on ethical values which is the Body
Shop has always considered natural ingredients as important. Business service
organizations can benefit too from building a reputation for integrity and best
practice.
As
conclusions, CSR gives a lot of benefits to potential business. CSR is a
commitment to improve community well-being through discretionary business
practices and contributions of corporate resources, thus CSR can helps
organization to win new business, develop and enhance relationships with
suppliers, customers and networks, to attract, retain and maintain a happy
workforce and be an Employer of Choice, also increase the customer retention.
Besides that it can generate positive publicity and media opportunities due to
media interest in ethical business activities.
REFERENCES
- Branding differentiation. Retrieved on 13th February 2013 at http://www.brandingstrategyinsider.com/2011/10/brand-strategy-rethinking-brand-differentiation.html#.URumi6UqaHk
- Corporate Social Responsibility (CSR). Retrieved on 13th February 2013 at http://businessthatcares.blogspot.com/2010/08/corporate-social-responsibility-and.html
- Ethical Values. Retrieved on 13th February 2013 at http://www.globalethicsuniversity.com/articles/valuesforsuccess.htm
- Millward Brown. Retrieved on 13th February 2013 at http://en.wikipedia.org/wiki/Millward_Brown
- The benefits of CSR. Retrieved on 13th February 2013 at http://www.simplycsr.co.uk/the-benefits-of-csr.html
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