The Business Benefits of Corporate Social Responsibility

The Business Benefits of Corporate Social Responsibility

  • Submitted By: Anu919
  • Date Submitted: 02/06/2009 7:46 AM
  • Category: Business
  • Words: 726
  • Page: 3
  • Views: 1

Corporate Social Responsibility

Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, responsible business and corporate social opportunity) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and otherstakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large.

The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; still others argue that it is an attempt to preempt the role of governments as a watchdog over powerful multinational corporations.

Corporate social responsibility

The business benefits of corporate social responsibility

Corporate social responsibility (CSR) isn't just about doing the right thing. It also offers direct business benefits.

Building a reputation as a responsible business sets you apart. Many consumers prefer to buy from ethical businesses. Companies often favour suppliers who demonstrate responsible policies as this helps them to minimise the risk of any damage to their own reputations.

Some customers don't just prefer to deal with responsible companies, but insist on it. For example, sales of "environmentally friendly" products continue to grow - and these products often sell at a premium price. Ben & Jerry's ice cream became as...

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