Originally posted 2016-06-27 06:24:46.
What is CSR?
Corporate Social Responsibility (CSR) is company’s responsibility toward humanity, community and environment that demonstrate their benefit to citizenship by reducing waste and pollution, contributing planting and educational programs. In the last decade, Corporate Social Responsibility has made an effective access on the economic, business and also the political, social science. Before 2009, CSR wasn’t effective as it is now. In 2009, social magnate, writer and academic, Dr. Wayne Visser, found “CSR International”.
The motto of the organization is: “CSR is dead, long live CSR!” Old understanding of CSR (corporate social responsibility, which was called CSR 1.0) is no longer fit for purpose and the new CSR (corporate sustainability and responsibility, which is called CSR 2.0) has just been born. Although certain critics allege that Corporate Social Responsibility is not sufficient to diminish negative consequences, which are derived from companies, dozens of facts prove that CSR aids community precisely.
Benefits of Corporate Social Responsibility
Corporate Social Responsibility is a way for companies to benefit society and themselves. CSR is not only about distributing money to charity or planting trees. First of all, business exists to make profit, and companies gain income much more than they spend for CSR. In today’s globalized world, each business regardless of its size should have a CSR program in place. Building a reputation as a responsible business sets companies apart. Consumers often appreciate suppliers who have responsible policies. If CSR is not included in daily tasks’ of company, company will loose the trust of the people who are essential to its business.
For instance, in 2003 Pepsi Company’s sales reduced 65% only in a month because of children labors. Pictures of children aged below fifteen who worked for Pepsi in Thailand were spread on Internet only in a few days and Pepsi Co. faced absolute loss of their customers. However, company reinstated its prestige in a couple months by contributing million dollars on the house of orphans. This example proves that Corporate Social Responsibility have distinctly effects on company’s prestige and revenue. Beside CSR’s benefit to companies, it also has certain avails to society. Society gains better neighborhoods and chance to engaging in activity applications. Business benefits from a better society whether the society is the essence of its workforce, and the consumer of its services and products.
Making the World “Live Able”
Environmental CSR remains one of the most distinguished types of CSR. Environmental CSR plays a fundamental position for massive companies to affect climate change, reduce footprint on water, and effective energy use. The primary resources on which business rely on are limited. At the current rate of consumption, statisticians have calculated that the world has approximately 15.637 days worth of oil, 152,234 days of coal and 61.064 days of gas remaining. As primary sources are going to run out, corporations and consumers must consume them efficiently. Of course, once these sources will be drained, however, if humanity doesn’t take into account of environmental issues, consequence would be devastation of both economy and community.
These assumptions encourage companies to take part in environmental CSR. For instance, Valerio Energy Corporation won Texas Governor’s award for environmental supremacy in 2007. Valerio Energy Corporation invests $2 billion in cleaning of burnt coal wastes. In 2006, corporation succeeded a ninety-three percent fall of sulfur dioxide emissions at their North American facilities. This accomplishment highlighted corporation’s prestige around the world. As a result, Valero Energy Corporation has been both elevated its prestige and protected environment.
Opposing Sides for CSR
There are a lot of debates and criticisms surrounding the notion of Corporate Social Responsibility. One of the common oppositions of CSR is that conflicts remain between the concept of social responsibility and purpose of business. It is confirmed that business’s true purpose is to make a profit for the benefit of shareholders. Doing anything outside of this purpose denies the essentials of business principles. Opponents also claim that CSR is not serving shareholders interest. In most cases, businessmen have to hire additional personnel to manage CSR initiatives.
The funds required to be paid directly comes from shareholders pocket. However, by involving volunteers to social responsibility, company and shareholders both saves money, and inform individuals to obtain new habits such as, stopping pollution, wastesFrom this point of view, Corporate Social Responsibility would have enormous affects on community in a positive way, only if
it routes correctly.
To sum up…
CSR for short, can be summarized as obligations to protect and improve the environment. Corporations gradually are concerned about how their actions affect society and environment. CSR concept can bring several benefits to community, such as enhancing entrance to capital and markets, increasing profits and sales, developing quality and productivity. As American writer David Thoreau quotes: ”Goodness is the only investment that never fails!”