Adoption of Corporate Social Responsibility

Corporate Social Responsibility

Corporate Social Responsibility, or CSR, is a method by which businesses comply to regulatory and ethical standards in their operations. CSR include corporate activities that promote national and local values. Corporate Social Responsibility is achieved by firms allocating a portion of their profits to improve social well-being in the communities in which they operate. This includes philanthropic contributions and conservation efforts to promote environmental sustainability.

Benefits of Corporate Social Responsibility

Companies that are socially responsible, in my opinion, benefit. A well-thought-out and well-implemented CRS program can provide a company with a competitive advantage in the market. Social responsibility improves the image of a company's brand. It is advantageous to tie a corporate brand with a particular cause or value. Consumers are more likely to purchase products from socially responsible firms, regardless of how they cost.

Advantages of Pursuing CSR Programs

There are enormous benefits or advantages that companies that pursue CSR programs can enjoy. It enhances company's efforts to recruit the best employees in the labor market. CRS programs present companies with opportunities to recruit workers who strongly believe and are committed to giving back to the community. Also, improving lives of communities around businesses enhances their purchasing powers, which is beneficial for companies. Nonetheless, pursuing a sustainability strategy has some downsides. First, there is always a very high standard expected from companies that pursue this strategy. A failure to meet that standard even slightly is met with sharp criticism and negative publicity. And second, pursuing a corporate sustainability strategy requires meticulous planning and a massive budget. As such, it may not be a feasible proposition for small firms and start-ups.

The Role of Management Attitudes

In the last few years, a lot of efforts have been made towards incorporating sustainable strategies into corporate operations. However, the management attitudes towards CSR affect company strategy in some ways. For instance, a manager's attitudes affect the amount of a company's budget allocated towards pursuing a particular strategy. The budgetary allocation a company sets side to pursue a sustainability strategy relies on managers' attitudes towards sustainability.

Support for Social Responsibility

I fully support social responsibility because of the enormous benefits it brings to businesses. It helps firms to enhance their brand image and improve customer loyalty, which results in increased sales. Social responsibility also improves the social well being of communities because CSR programs often invest in better schools and health facilities.

Challenges for Small Firms

Despite the good progress in adoption of CSR, it is still a slow process. Small firms find it difficult investing in such programs because of financial constraints. There is also no guideline for small business as most of the procedures were designed for huge corporations.