Importance Of CSR In Business Growth Samples †MyAssignmenthelp.com

Question: Discuss about the Importance Of CSR In Business Growth. Answer: Introduction: Unlike earlier times, the business organizations in todays world, contest in a highly competitive market. Consequently they should not merely be driven by the profit motive, and rather should consider the idea of conducting business in an ethical and responsible way. This is exactly the reason why most of the business organizations invest in Corporate Social Responsibility, and ensure that corporate self-regulation is being incorporated in its business model (Tai Chuang, 2014). An organization that not only tries to boost its sales growth, but also complies with the ethical standards of stakeholder integrity, employment standards and environment protection laws, definitely ensures longer sustainability in future. Discussion: CSR: Importance in Organizations: The importance of CSR in ensuring overall growth and sustainability of business organizations cannot be overstated. First of all, while there are multiple organizations providing similar products or services in a highly competitive market, consumers are often confused about which organization to choose. However, if an organization declares its active engagement in social welfare programs, or willingly agrees to invest a share of revenue earned through every product sold in any good cause, consumers will be more willing to buy the product from that company. Thus, it does help in boosting the sales and revenue earning capacity of a company. Further, In this connection, it may be interesting to note that research suggests that around 55% of consumers are willing to buy a product or avail a service from a company, that they consider to be socially and ethically responsible (Suliman et al., 2016). Next, the engagement in the CSR activities also helps in enhancing the word-of-mouth publici ty of an organization as well. When an organization invests in business to maximize the shared value creation for all its stakeholders, it certainly achieves a positive reputation amongst its immediate as well as potential consumers. This is the reason why 93% of the largest companies of the word annually publish a CSR report, offering a detailed overview of its engagement in various CSR initiatives. Again, it is needless to state that a companys involvement in CSR initiatives also helps in enhancing employee motivation, as they derive unparalleled pride in working for a company that is supporting the community. A recent research conducted by Aon Consulting claimed that 80% of the respondents stated that they would work for a company that is invests in CSR initiatives, while 44% claimed that they do not mind working with a less reputed company, if it is engaged in CSR activities (Pedersen, 2015). CSR as a Business Strategy: While CSR is getting incorporated in the business model of many companies, it is much more than a mere obligation to consider the interest of the stakeholders and the community, the business is conducted in. In todays world, the CSR has emerged to be a strategic approach adopted by companies to strengthen its competitive edge. It might be interesting to note how Coca Cola was once accused to be a corporate villain in India, for extracting enormous amount of groundwater from Kerala as well as for containing unacceptable amount of pesticides. While the sale of Coca Cola in India dropped by 30 to 40%, the companys reputation also got ruined (Karnani, 2014). In order to recover its reputation, the company adopted the CSR strategy whereby it heavily invested in charitable activities in India, including the alleviation of poverty and illiteracy amongst the backward and remote interiors of the nation. It has also introduced the mission of 2020 through which it aims to empower the women entr epreneurs of India among other initiatives (Parra et al., 2016). Examples of CSR Activities: There are various kinds of CSR activities that an organization engages in. Presently, the companies offer heavy donations to charity organizations, collaborate with not-for-profit business concerns for arranging campaign about important social causes such as poverty irradiation or importance of maintaining ecological balance. Cause-related marketing whereby the company donates a share of the amount earned by selling each product, is also a common CSR activity. Again, the CSR activities may not necessarily include philanthropic activities, but can also include strategies that help in enhancing health, safety and occupational well-being of the employees. Some real-life examples of CSR practices may include how Google employees managed to raise $2.6 million for the earthquake affected victims of the Sichuan Province, and how the company donated $1.02 million free advertising search for the well-being of the people (Kleine, 2014). Again, Autodesk Foundation encourages its employees to ap ply their skills and expertise through paid volunteer hours, whereby they invest sufficient time for important social causes including packing meals for the impoverished people, and arranging crisis-relief programs. Again, the second largest discount retailer of the US market, Target has managed to exceed its goal in reducing water use by 10 percent (Uhrich et al., 2014). Besides, the company has also expanded its irrigation technology to an additional 601 locations and is still attempting to add 75 % native and sustainable plantings in all of its new stores (Caplan et al., 2016). Conclusion: As evident from the above discussion, CSR is not just a practice that a company has to initiate in order to comply with the regulatory framework of a country, but rather it is a business imperative that cannot be avoided if an organization wishes to sustain in the given business scenario. First of all, the exploitation of resources for immediate profit will certainly threaten and impede future profitability of a company. Next, a company that is indifferent to the well-being of its stakeholders, will soon fail to survive amidst cut-throat competition, as it is the shared value creation that offers sustenance to a company. Recommendations: It is clearly evident that the implementation of CSR initiatives is a mandate in any organization. However, most importantly, it is recommended that the CSR agenda must be aligned to the business market and immediate business environment of a company. For example, an Australian company investing in the social welfare programs of Asia will barely make an impact. Next, a thorough research into the day-to-day issues of the society required acquaintance by the concerned authority. CSR policies may encounter employee resistance at the start, and it is recommended that themanagement authority explains the purpose, scope and benefits of CSR to its employees. Lastly, an investment in CSR initiative must go hand in hand with a sound marketing strategy. A companys effort to promote well-being should not go unheard, and it must essentially be accompanied by strong promotional efforts on social media sites as well as company websites in the form of shared pictures, live videos and most important ly a published CSR report. References: Caplan, D., Dutta, S. K., Lawson, R. A. (2016). Corporate Social Responsibility Initiatives Across the Value Chain.Journal of Corporate Accounting Finance,27(4), 57-66. Karnani, A. (2014). 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