The practice of Corporate Social Responsibility is a paradigm for firms to follow. It is not longer fashionable but a business requirements. Business leaders realise that the sole reason of a business existence is not only profits, but organisations have a role to play to contribute to the economic well being of society.
CSR makes business sense and it is proven to have the knock-on effect. This practices are in the interest of a firm to apply those methodologies. Now it is the high time for organisations to engage in responsible behaviour.
Unfortunately, there is still tendency to treat Corporate Social Responsibility as another cost to the business.
This is because businesses generally consider it as a marketing tool to educate potential consumers and markets of the business social efforts. This is not the intended outcome of the proponents of the idea. Rather, a change in attitude towards responsible practices and the concept need to be embedded with the corporate DNA.
This is not a quick fix, but a fundamental cultural change that need to be voluntary to bring the expected results.
CRS allows companies to "do their bit" for society, environment and the world economy. Applying the principles will not only bring contentment in doing something good for others, but also allows companies for growth and long term success.
It helps create a positive feeling in the brand name, but it should not be implemented only to gain publicity.
Young and Tiley (2006) argues that social responsibility also improves business efficiency. This brings costs savings and improved profit margins. This is the reason the concept has become the latest buzzword across the companies.
CSR as a concept has found its feet most in Europe, but currently US businesses also make rapid strides in implementing it. However, the other continents like Asia and Latin America were lagging behind for a long time in even recognising that business have any social responsibility.
It cannot be said, however, that those regions are left behind totally, but many commentators in those countries dismissed the idea of CSR and concluded it is a luxury adopted in US and Europe. We see, however that countries like Brazil and India taking a lead in adopting policies that are environmentally and socially responsible.
We must understand that social responsibility is not a 'marketing trick'. Business would be hypocritical in their approach if they say they are socially responsible if they are driven by harassment, excessive coercion, intolerance towards diversity and have a high turnover of employees.
"The overriding conclusion is that companies need to be mature and realise that they must practice socially conscious policies with their workforce as well." (Management Study Guide)
Bibiography:
Management Study Guide, Corporate Social Responsibility
Comments