What is Corporate Social Responsibility and Why is It Important
- Posted by admin
- 27 February 2014
Corporate Social Responsibility abbreviated as CSR is an issue that is gradually capturing the imagination and interest of individuals in the corporate world. Nonetheless, in spite of all the hype attached to this subject, there is still rife controversy, many misperceptions, and much confusion surrounding it. The purpose of this article is to concisely and briefly add clarity to better understand CSR issue based on different experience accounts. Moreover, we will describe how this concept links back to prime managerial apprehensions such as company registration, strategic planning, human resource management, supply chain management, and risk management operations. Besides, we shall address this question: what is Corporate Social Responsibility and why is it Important.
Firstly, let us clear up on the common fallacy. CSR does not only concern charity services or about philanthropy activities to the community. However, this does not mean that philanthropic activities are inconsequential. On the contrary, these activities help a company establish good relations with neighboring community and leaders of a given community. However, these philanthropic activities are at just superficial expressions of CSR.
Moreover, restricting CSR to only philanthropic activities can impact negatively to the organization. For instance, employees of such Firms may become skeptical if it becomes obvious that while their Company is quite generous to charitable projects, the same is not seen in terms of being sensitive to workers plight such as poor pay, poor working conditions, and employees’ safety. The community might also become bitter critic of the Company if they discover that they do not care about the environment.
There is numerous importance of CSR; these benefits are two-way where they would benefit both the company and the community. Basically, CSR are meant to solve social problems. For instance, there could be an underlying problem within the community such as the gripe against aerosol spray products. The above products had negative impact to the environment thus; a responsible Firm that is concerned with CSR and company registration requirements would offer resources to the community to solve that particular social problem.
Moreover, the organization ought to give due deliberation to job satisfaction, and work organization. This way the company would be able making reasonable effort to offer security of employment, and endeavor to offer employment opportunities to all including the minority groups in the community. Why should Companies be so concerned with CSR or what do they stand to gain? Most significantly, research has shown that CSR is vital for the long term sustainability of a company.
Companies which narrowly and blindly pursue the profit cause, without being concerned with the broad-spectrum of stakeholders that are pertinent in the long-run, are continually shown to lack sustainability. However, it is not only significant to realize the significance of these groups. Moreover, Companies ought to decipher how to relate and understand how company registration and various stake-holders, and the fulfillment of their innate needs, characterize interrelated challenges. These interrelated challenges include the strategic administration of human resources is allied to client satisfaction, and it is necessary for Companies to endeavor to deal and understand this connection.