Corporate Social Responsibility for Profit Maximization (Term Paper Sample)

Corporate Social Responsibility for Profit Maximization
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Abstract
Corporate social responsibility is an important tool towards the realization of high profits in business. In this excerpt, we have depicted important roles that CSR can play in changing the profit margin of the business. The excerpt has also looked at factors that can affect the ability of a CSR program in making tangible profit gains. The concept of CSR about cost and management accounting has also been put into perspective by drawing parallels between the two. The research has encompassed on finding ways in which the CSR has delivered profit gains in businesses and organizations.
Introduction
Corporate social responsibility has been adopted by several organizations in the world in a bid to achieve greater financial gains. One of the major questions surrounding the use of community social responsibility is whether this model drives forward the financial gains of an organization or it just help to create a positive corporate image of an organization. Most organizations have engaged into corporate social responsibility since they believe that this endeavor will propel their financial gains forward (The corporate social responsibility Magazine, 2015). The magazine states that the success of this venture depends on certain variables and approaches for a positive impact to be established. Most of the variables associated with CSR are difficult to define making it hard to establish how best it can lead to improving Profits.
Corporate social responsibility for profit maximization
In relation to cost and management accounting, any venture must bear financial gain for it to be deemed reliable and worthwhile to an organization. The concept of profit worthiness plays a pivotal role when deciding to undertake a certain venture. That's why it is important to look at pertinent factors behind CSR that can exacerbate profits or lead to losing in a business venture. According to The Magazine of Corporate Responsibility, CSR can improve profits since it can create a positive corporate image of an organization (2015). The positive image will in extension lead to high sales, attract quality talents and enhance customers' loyalty to the organization. When the right criteria are followed in the application of CSR, it is possible to reap great financial benefits. Every business operates with the aim of making profits and remaining afloat in the face of competition. The various techniques used in making the profits growth differ from one organization to another. CSR is one of the methods used to drive an organization's fortunes up, and it has been leveraged in several ways.
Corporate social responsibility is very crucial in attaining sustainable development. It plays a major role in dealing with important social problems in the society. Most of the problems that affect people in the society can be dealt with through concerted effort between the community and the business. Helping people deal with the problems that have been affecting over a prolonged period, will create a positive image of your business. People will start associating with your organization with good things. When you help in solving major issues of concern such environmental, education and infrastructural sectors, your business will draw major benefits. The benefit will help in several ways and the holistic progress if your business.
CSR should be embedded in business in its routine operations to ensure mutual benefits for the business and the community in which it is serving, (2016). According to Samantha, CSR should be not only be directed towards profit maximization but it should be instigated by the need to create an environment conducive for the operation of the business and human existence. It should not come as an afterthought (Muir, 2016).
Muir also adds that, CSR helps an organization become an employer of choice. When an organization becomes an employer of choice, it will be able to attract high caliber employees. When you have a high caliber crew of employees, the level of production will be a notch higher in comparison with other organizations. This will translate into quality goods and services in the production process. High-quality goods and services will drive the profit margins higher. This means that, CSR has an imperative role in improving the profitability of an organization.
In addition, CSR also enhances the relationship between a business and its clients.(Muir, 2016). Through CSR, you can foster a strong working relationship and create alliances that will heap several profitable benefits to your business. Having a close relationship with your clients will create trust which later translate into higher sales. This will help you differentiate yourself from your competitors. It will also serve as an important mechanism of long-term retention of customers in your business. According to research, 88% of consumers said that they were more likely to buy from a company that supports and engage in activities to support society (Bell, 2008). This means that more consumers deem it worth transacting with organizations that pay attention to important social welfares in the community.
CSR should not be viewed as drain on resources (Bell, 2008). When carefully implemented it can help make an important milestone in improving the profits. Making the right move when implementing the concept of CSR in your organization is the most important thing to consider. Strategic CSR helps a firm establish organizational activities and social activities that will contribute towards profit maximization (Christopher and Ruben, 2009). Strategic CRS is important when aiming profitable gains for an organization. The important thing to do is to conduct research on key social areas that your business can engage in and draw profits in the long run. There are several areas that can capture the attention of the organization's public and change their attitude towards your organization. When you are exploring on areas that can lead to profit gains, measuring the cost and the returns is essential. The cost of the projects implemented with the view of reaping returns should be gauged to establish the worthiness of the projects. Understanding the kind of stakeholders that you are dealing with is another important thing to consider ((Harnandez, 2009)). When you are aware of your stakeholders you will be in a position to apply the right strategy in a bid to m...