Importance of corporate social responsibility to societies

Corporate social responsibility generates direct and indirect business benefits and advantages to the corporation that adopt it (Bueble, 2009). In synthesis, the benefits and advantages that corporations adopting Corporate social responsibility initiatives may obtain the following (Campbell, 2007):

  1. Increased employee loyalty and retention.
  2. Gaining legitimacy and access to markets.
  3. Less litigation.
  4. Increased quality of products and services.
  5. Bolstering public image and reputation and enhanced brand value.
  6. Less volatile stock value.
  7. Avoiding state regulation.
  8. Increased customer loyalty.

Corporate social responsibility activities amongst various corporations and its stakeholders could contribute to the macroeconomic development of a developing country through sustainable benefit to all. At the same time, optimum national impact, cooperation, and communication would be encouraged and socialized.  The following are the various benefits of corporate social responsibility to the society

Local community and society

  • improved quality of life and Changed habits.
  • Capacity building creates wealth and employment.

Better world and environment from corporate social responsibility

  • Balanced ecosystems.
  • Waste management.
  • Clean and Green environment.

Corporations

  • Goodwill and Community acceptance.
  • Profit, Growth, competitive edge and image.
  • Genuine dialog with stakeholders.
  • Spiritual and Pride values to their families and employees.

Thus it can be understood that, corporate social responsibility helps in building a reputation as a responsible business and as a good citizen.

References

  • Mullerat R (2009), “International corporate social responsibility: the role of corporations in the economic order of the 21st century”, Kluwer Law International, Netherlands, pp 14.
  • Campbell, J.L. 2007. Why Would Corporations Behave in Socially Responsible Ways? An In-stitutional Theory of Corporate Social Responsibility. Academy of management Review, 32(3): 194-967.
  • Bueble E(2009), Corporate Social Responsibility: CSR Communication as an Instrument to Consumer-Relationship Marketing, GRIN Verlag, New York.
  • Castka P, Bamber C and Sharp J M (2004), Implementing effective corporate social responsibility and corporate governance : a framework, British Standards Institution, UK.

Priya Chetty

Partner at Project Guru
Priya is a master in business administration with majors in marketing and finance. She is fluent with data modelling, time series analysis, various regression models, forecasting and interpretation of the data. She has assisted data scientists, corporates, scholars in the field of finance, banking, economics and marketing.
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