CSR activities are much popular activities now of any business organizations?
In the present context most of the organizations are focusing
on the CSR activities. In early stages of industry revolution organizations
were interested in making more profitability for the organization. Profit
maximization was the ultimate objective of the organization. In 1980, most of
the organizations were trying to give more attention towards the corporate
social responsibilities. In that era business and social interests came closer
and organizations became much responsive to its stakeholders. In 1990s CSR idea
was universally approved. And after that in early 2000s the CSR idea was
included in the strategy formulation of the organizations and considered this
concept as a more important factor for the organization.
In the current context the customers have more choices
than the past. Therefore, customers have the choice to choose between the
competitors. Therefore, organizations have to differentiate themselves with the
other competitors. Customers make decisions based on how much good a
corporation is doing outside of the workplace and how they are positively
impacting their community.
Most of the organizations try to build up their public
image through the CSR activities. Buy undertaking CSR activities, they believe
that customers perception towards the organization will be positive. According
to a study by Cone Communications, 9 out of 10 consumers would refrain from
doing business with a corporation if there existed no corporate social
responsibility plan. Therefore, this means that the customers are more willing
to purchase the products from the organizations that are helping the community
or doing the CSR activities.
Modern organizations are now moving towards the green
concept. This also could be taken as one CSR initiative of the organizations.
Customers would prefer to do business with organizations which are
Another importance of CSR activities is positive
workplace environment. The employees would prefer to work for an organization
which has positive image among the general public. The employees demand their
company to be socially responsible. Around ten years ago, it is considered good
if a company does not harm the environment and the community. But now the
things have changed. Now the employees demand the company to do good for the
society. According to a study done by Forbes, 32% of employees would seriously
consider leaving their job if their company gave no / little money to charity. 65%
would seriously consider leaving their job if their company harmed the
environment and 83% would seriously consider leaving their job if their
employer used child labor in sweatshop factories. So, this shows that CSR is a
very important part of any organization. And not only the outside parties,
employees are also much concern about the CSR activities done by the
Customers will expect better business practices form
the organizations and they are willing to do more to do business with those organizations
that are socially responsible. According to a study it shows that a customer is
willing to drive extra 11 minutes to purchase the product or get a service from
an organization which is practicing CSR. And also, customers will adjust their
buying behavior accordingly from average companies to socially responsible
companies. According to the same article by Forbs, more than 88% of consumers
think companies should try to achieve their business goals while improving
society and the environment and 83% of consumers think companies should support
charities and nonprofits with financial donations.
Another reason for the popularity of CSR activities is
that it creates competitive immunity. This means that the CRS makes the business
more sustainable in the long run. According to Harvard business review.
is about choosing a unique position – doing things differently from
competitors… These principles apply to a company’s relationship to society as
readily as to its relationship to its customers and rivals”. Furthermore “CSR
can be much more than a cost, a constraint, or a charitable deed—it can be a
source of opportunity, innovation, and competitive advantage ”
CSR activities also inspire innovation within the organization.
Therefore, this will lead to longer term sustainability of the organization.
argue that the CSR gives long term profitable to the organizations. Using the
literature of research articles of CSR comment the above statement.
The organizations perform CSR activities not just for
the wellbeing of the society. They expect a positive return for the
organization form those activities. There is an argument that the CSR will lead
to long term profitability of the organization. Therefore, it would be
appropriate to analyses an organizations CSR activity and the profitability for
a longer time. Below I will discuss the CSR initiatives taken by Pepsi -Cola
and the impact on the organizations from those CSR activities. Pepsi refresh
project was one of the CSR initiatives taken by Pepsi.
The Pepsi Refresh Project was an online platform that
launched in 2010 that gave individuals and organizations the opportunity to submit
proposed solutions to local community problems and receive grant money from
PepsiCo for those ideas. But this new initiative could not last long and it had
to be abandoned in 2012 due to the loss of share price, reduction in sales and
reduction in the profitability of the organization.
In the other hand, there are companies which were able
to increase the profitability through CSR activities. For an example “Dutch
Bangla Bank Ltd” was able to increase the profits using CSR activities.
According to statistical analysis done by “Stamford
University Bangladesh” it is shown that corporate social responsibility
expenditure on profitability in DBBL which revealed (Beta= 0.953, p<.01 this means that for every unit change increment the csr expenditure will lead to .953 or increase in profit after tax of company. according analysis it clear activities has a positive impact on profitability organization. therefore shows short term and long-term organizations banking sector. study concludes there is significant relationship between profitability. what are other benefits can be expected by implementing encourages both professional personal development providing opportunity employees involved company socially responsible have benefit learning new skills which turn applied workplace. undertaking outside their usual work responsibilities chance contribute causes they might feel passionate about learn something entirely help enrich own perspectives. supporting these encourage growth support employees. enhances relationships with clients having strong corporate social responsibility framework strengthen also developing could generate more ability general public keeping front mind businesses act ethically consider environmental impacts business. doing so companies avoid mitigate negative business community. some cases find ways make changes services value chain delivers public. cost reductions does not always money organizations. if done right organization save lot money. below an reduce through activities. efficient staff hire retention energy savings programs managing potential risks liabilities effectively less investment traditional advertising long future your going concern concept. last longer periods time. achieve sustainability. easier access capital raise requirements. reputation develop investor confidence towards differentiate concept developed world countries different. visser stated four reasons why cannot treated same countries. those as follows. economies most rapidly expanding hence lucrative markets crises often acutely felt. globalization economic likely dramatic challenges practising distinctively different from ones no doubt view practicing very seen resourceful ten drivers internal cultural tradition political reforms socio priorities governance gaps crisis response market external international standardization incentives stakeholder activism supply relevant than drivers. furthermore found out tends institutionalized codes standards commonly integrated procedures mainly originated great around world. various standardizing several design standards. many governmentally supported danish standard ds national translate modify been level focused child labor. huge arguments regarding use labor recent past. privileged society where continue areas. however communication useful involvement may lack understanding understand another starting point one we western background far requires basis. idea differentiating differentiation main factor culture differences way people see directly beneficial implement should tailor maid each country suit requirement community operates. hand issues addressed even exist>