Corporate Social Responsibility Essay Example

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    Masters
  • Page:
    1
  • Words:
    710

5Learning Assessment Week Three

Corporate Social Responsibility

Introduction

Myriad of companies embark on corporate social responsibility as a strategy to ensure long term sustainability of the organization. With the sole and prime objective of profit maximization and increasing the worth of the shareholders, organizations engage in social responsibilities for various reasons. Improving public image and people’s perception towards the company is one of the major rationales behind the strategy. This paper seeks to elaborate on the improvement of public image as the biggest motivation for companies to continuously engage on corporate social responsibility activities with aim of enhancing organizational sustainability.

Corporate Social Responsibility and Public Image

Kaliski (2001) explicates that the emergence of corporate social responsibility (CSR) as a practice that improves the organization’s public image by addressing pertinent issues affecting the society has given many companies a competitive advantage over their rivals in the contemporary world of business (p. 34). The practice entails the ability of the company to have its operations streamlined to increase the involvement of the company in improving its social ties with the employees as well as the society who constitute the key stakeholders of the organization.

From the outset, CSR enhances the positive perception of the company by the society, employees and the target market. According to stakeholders’ theory, the acceptance of the company’s brand by wide array of societal members leads to a boost in the entire corporate brand image (Steve et al, 2007, p. 87). Ultimately, positive corporate image leads to increased sales of the company’s products which, gives the company an edge to compete effectively for market share with its rivals. For instance, Wal-Mart embarked on environmental custodianship and conservation in many of its operations in Latin America which subsequently received positive reporting from media and journalists. This facilitated the companies’ continued acquisitions and opening of new franchises all over the world as many stakeholders began to perceive the company differently – to its advantage.

Further, CSR is an integral part of continued improvement of the company’s performance as employees begin to perceive the objectives of the company as common and shared amongst the work force. Organizations address the employees’ pertinent issues such as wage rates, absenteeism and promotion (to mention but three issues affecting the employees) making the workers committed and begin to relate freely with the company’s brand (Kaliski 2001 p. 3). The positive perception of the company by the employees leads to motivation and improved performance as employees perform in their roles and responsibilities within the company diligently. This result to organization’s sustainability as it is able to reduce on costs of training newly hired employees by retaining the already existing workforce.

In a more practical approach, coffee sector embarks on a robust CSR strategy in the name of ‘fair trade”. Fair trade ensures that the coffee farmers mainly living in the developing economies access basic needs in addition to affordable farm inputs during the farming process. Nonetheless, the supply of coffee in the global markets rose above the demand at the dawn of the 21st century pushing down coffee prices down. With the net income from coffee diminishing, coffee farming is on a downtrend production as farmers have found other lucrative farming activities. As such, companies like Starbucks and Nescafe have continued to enhance fair trade despite the returns from coffee remaining way below the production costs. This in turn led to increase market penetration in the long term as the local communities have perceived the company positively. This enhances long term sustainability of the organizations.

Conclusion

Conclusively, organizations embark on CSR to enhance their sustainability besides increasing the shareholders’ value in the long term. It tends to give the target market and the entire society with a positive perception as it continuously seeks to improve the lives of the stakeholders without a short term profit motive. In addition, it is through resolving the issues that the employees raise that the company saves on training costs in the long term and improves on performance.

References

Steve, M., Cheney, G., & Roper Juliet 2007. The Debate over Corporate Social Responsibility. Oxford, New York, NY: Oxford University Press.

Kaliski, B. 2001. “Social Responsibility and Organizational Ethics” Encyclopedia of Business and Finance. 2nd edn., Vol. 1 New York: Macmillan