Corporate social responsibility practices make employees stay for a longer period of time by lowering down the costs and disruption of retraining and recruitment (Haynes and Nunnington, 2010, p 203). Corporate social responsibility also helps to assure employees in the organization to comply with regulatory needs and tasks such as involvement with the local community which stands as an ideal opportunity to produce general positive coverage of press.
Corporate social responsibility builds good relationships with local authorities to make the business simpler and understands the vast influence of their organization which can support employees to create profitable services and products. It can also create a more competitive advantage and lower down the risk of a sudden injury to their organization’s reputation. Investors identify this and come forward to financing the organizations. Contrary to that Kreitner and Mahopatra (2008, p 140) have described that corporate social responsibility is useful in organizations for the retention of talented employees by satisfying their altruistic motives. The concept also helps in recruiting socially conscious and talented personnel and also improves community living standards for employees. It offers non-taxable benefits for employees and makes them donate funds for their favorite causes. Corporate social responsibility can be a win-win situation in both society and socially responsible organization can benefit in the long run.
CSR gets lots of attention to stakeholders. Schermerhorn (2010, p 68-70) argues that nonprofit organization, consumer activist groups, governments and employees are often influential and vocal in pushing organizations towards socially responsible practices. The classical view of corporate social responsibility holds that management’s only responsibility in running an organization is to maximize profits and the major obligation of management must often be to shareholders and owners.
Thus corporate social responsibility enhances long run profits, develops the public image of an organization, makes the organizations more attractive places to work and help eliminate regulations of government.
- Hayes D K and Ninemeier (2008), Human Resources Management in the Hospitality Industry, John Wiley & Sons, New Jersey, p 163
- Kreitner R and Mahopatra M (2008), Management, Dreamtech Press, New Delhi, p 140.
- Schermerhorn J R (2010), Management, John Wiley & Sons, USA, p 68-70