Corporate social responsibility contributes to organizational development

By Priya Chetty on May 1, 2012

Corporate social responsibility is not just doing the appropriate thing because it is correct. It also produces indirect and direct business advantages which benefits the corporations that adopt it (L’Etang and Pieczka, 2006). In synthesis the advantages and benefits that corporations achieve by the initiatives of corporate social responsibility is produced by:

  • Higher loyalty of customer.
  • Higher employee retention and loyalty.
  • Less litigation.
  • Higher quality of services and products.
  • Supporting reputation and image of public.
  • Enhanced value of brand.
  • And Less volatile value of stock.

Benefits of corporate social responsibility

Corporate social responsibility is an enhanced efficiency of an organization (Matten and Moon, 2005). Green practices such as reusing, reducing and recycling waste can lower down costs. Being ethical also supports wide fines for unethical behavior including lawsuits of class action and inaccurate financial reporting. Charges of sex and age discrimination are the two major sources of lawsuits against organizations. An organization with a good reputation for corporate social responsibility will gain the concentration of people who want to work for the organizations.

Managing corporate social responsibility

According to Dubrin (2011) Corporate social responsibility is handled always by practitioners of public relations for ends of public relations. Therefore corporate social responsibility is assumed as a part of the portfolio of public relations. As a technique to set up relations with specific groups and to enhance reputation with the stakeholders.

Corporate social responsibility has become necessary to public relations because they provide the opportunity to build goodwill by promoting the company’s benefits to its stakeholders.


  • Dubrin A J (2011), Essentials of Management, Cengage Learning, USA, pp 108.
  • L’Etang J and Pieczka M (2006),“Public relations: critical debates and contemporary practice”, Lawrence Erlbaum Associates, New Jersey, pp 414.
  • Matten, D., & Moon, J. (2005). A Conceptual Framework for Understanding CSR. In A. Habisch, J.Jonker, M.Wegner & R. Schmidtpeter (Eds.), Corporate Social Responsibility. Across Europe, Heielberg: Springer Berlin