The Success behind Socially Responsible Businesses (Essay Sample)
The task required the student to discuss the success behind socially responsible businesses, explaining the benefits accruing to a business from engaging in corporate social responsibility (CSR). The paper also discussed the challenges of CSR, detailing why it is challenging for businesses to engage in CSR. Further, the task required the student to provide a future outlook of corporate social responsibility.source..
THE SUCCESS BEHIND SOCIALLY RESPONSIBLE BUSINESSES
Corporate Social Responsibility
The evolving complexity and dynamics of the business environment necessitates that companies should develop competitive and strategic models to continue increasing their profitability in the long term (Khan., Muttakin & Siddiqui, 2012, p.40). Currently, companies across the globe are struggling with the responsibility of satisfying their needs while comprising the ability to meet the future demands (Khan., Muttakin & Siddiqui, 2012, p.41). As a result, the adoption of corporate social responsibility strategies is inevitable to allow the business operations to benefit the natural environment and societies. Similarly, businesses are inclined to consider environmental and social inclusion in their operations and when interacting with the stakeholders (Wolf., Issa & Thiel, 2014, p.33). The global business environment has been changing, and the focus of organizations now permeates gaining profits. For instance, the increasing power of multinationals, fiscal abuses, environmental degradation, and social inequalities are issues that can be addressed using corporate social responsibility. In that regard, this discussion will demonstrate that socially responsible businesses, committed to profitability and social goals, will survive in the current universal political economy.
Corporate Social Responsibility (CSR) in Community Development
In business, the community concerns the people who have a common interest with an organization and are interdependent in the realization of particular needs (Zaman, Roudaki & Nadeem, 2018, p.372). Such individuals reside around the businesses they reside with regularly. Significantly, shared expectations exist between communities and companies and due responsibility is taken to achieve them. Thus, CSR allows firms to focus on meeting the shared expectations (Zaman, Roudaki & Nadeem, 2018, p.373). As a result, the social impact of a business grows which is expressed as cooperation feelings in the commitment of groups welfare. In some cases, external partnerships are created with businesses that have similar interests in a community. These relationships strengthen business ties and eventuality productivity (Zaman, Roudaki & Nadeem, 2018, p.374). That is possible because skills are concentrated in the areas of need resulting in better business outcomes to benefit the community. For instance, environmental firms combine their efforts to train communities on how to preserve natural resources and manage waste disposal.
Research indicate that corporate social responsibility creates sustainable and active communities founded on mutual and social justice (Yüksel & Idowu, 2014, p.91). Therefore, the power structures used to eliminate the barriers which prevent individuals from solving the problems affecting their lives. In most cases, community workers help in increasing people’s participation in such ventures by creating awareness and initiating programs (Yüksel & Idowu, 2014, p.72). More so, linkages are established between firms and the concerned community which results in the establishment of inclusive policies. For example, some businesses may define policies on how to support local education by awarding scholarships and donating resources. In this case, the promotion of community education increases the value of the community by creating future the opportunities for the young generation. The atmosphere of the global political economy is changing, and the young generation needs to have skills in different areas of expertise (Yüksel & Idowu, 2014, p.75).
Corporate social responsibility includes strategies, processes, and programs that shape the sustainability of communities when compared to economic development which markets potential growth fueled by local efforts (Zaman, Roudaki & Nadeem, 2018, 373). The approaches used in community development practices may be viewed as coordinating, addressing and building social infrastructures in particular locations. Therefore, the negative conditions which affect the quality of life in a community is improved with the development of social infrastructures. As a result, community solidarity is enhanced, and businesses can engage in further social ventures with people (Yüksel & Idowu, 2014, p.77). In this case, the appreciation of the value of life allows enterprises to protect the environment. For instance, trees can be planted to improve the microclimate. On the other hand, water projects can be initiated to benefit communities suffering from the shortage of the crucial commodity.
The Power of CSR
A business cannot overlook the problems that affect its environment. Therefore, corporate social responsibility provides businesses with the means of interacting with communities and offering solutions to social and environmental issues (Appelbaum & Lichtenstein, 2016, p.14). Similarly, the changing landscape in the global economy has over the years inclined organizations to be conscious of their environment. For instance, they have to share the negative effects of industrialization by providing solutions such as improving electric railways to reduce air pollution using petroleum products (Appelbaum & Lichtenstein, 2016, p.16). Firstly, the implementation of CSR strategies allows firms to access better talent. Businesses that engage in CSR activities become potential employers through their commitment to a value proposition. Such organizations also have positive attitudes which is related to exemplary performance (Appelbaum & Lichtenstein, 2016, p.18). Similarly, corporate social responsibility builds the confidence of the senior management which is crucial in finding talent. As a result, new ideas and techniques of working can be appreciated.
Secondly, CSR is a vital tool in the protection of the environment (Khan, Muttakin. & Siddiqui, 2012, p.51). For instance, some multinationals have been engaged in environmental initiatives courtesy of their commitment to corporate social responsibility. Such firms work under the perception that environmental and financial performance can coexist to propel social reputation and organizational growth (Khan, Muttakin. & Siddiqui, 2012, p.52). As a result, such an attitude creates a culture of going green. Such is the case of “We green the earth,” a slogan used by multinationals in Malaysia, who have massive golf fields within residential areas. Also, most of the non-profit organizations such as the United Nations, have devoted their efforts towards learning and advocating for environmental protection (Khan, Muttakin. & Siddiqui, 2012, p.52). For example, Friends of the Earth is an initiative which emphasizes the environmental effects of some multinationals and therefore campaigns for stringent laws. Such action aims at increasing the levels of responsibility for businesses towards the environment.
Thirdly, corporate social responsibility plays the role of transferring technology between multinationals and the host nations. In particular, the international organizations have assets and facilities in several countries (Tiba, Rijnsoever & Hekkert, 2018, p.62). Also, they have different central offices where their initiatives are coordinated and managed globally. Significantly, multinationals in most cases have large budgets to promote their activities. One of the main activities done is the promotion of mechanisms such as technology transfer amongst others such as supporting third-sector technologies (Tiba, Rijnsoever & Hekkert, 2018, p.63). This role is effectively handled via CSR courtesy of the mobility of multinationals and their globalization. As a result, the targeted communities could benefit immensely from the shared technologies. For instance, they can benefit from improved marketing and product development. In that case, the well-being of the concerned communities is covered.
Fourthly, CSR is determined as a solution for the implementation of sustainability goals for businesses. Globally, companies have been focusing on their social responsibilities throughout the years under the umbrella of corporate sustainability (Chojnacka & Wiśniewska, 2016, p.29). The EU, for instance, developed a framework for corporate sustainability which identifies progressive sets of environmental, social and economic objectives for firms to achieve. Similarly, a methodology for the evaluation of employee perspectives on corporate sustainability practices has been determined (Chojnacka & Wiśniewska, 2016, p.30). These are the activities that indicate a company’s continued commitment to ethical behavior to realize improved ethical behavior. The metrics of evaluating corporate sustainability cover aspects such as legal and ethical performance, perceived importance and awareness among employees, worker sustainability behaviors, and community and social performance.
Lastly, CSR programs can be used for eliminating poverty in the target communities. For instance, Bersamamu and Malaysian reality show aired in TV3 courtesy of Syarikat Faiza Berhad – a local business highlights the poverty of local communities (Ramanuj, 2012, p.37). Therefore, the program pleads the government to find ways of empowering these people. Also, the enterprise gets assistance from the local media TV3 to publicize the issue of poverty to the audience. Thus, to show support for the program, all purchases related to the show are donated to the community (Ramanuj, 2012, p.39). Most importantly, such a program facilitates public organization where people gather to...
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