Corporate Social Responsibility
Corporate Social Responsibility is a self-regulating business model used by the organization as a part of social accountability for the welfare of the society and development of social welfare. From, business point of view, Corporate Social Responsibility increases the product’s brand value of the organization. The importance of Corporate Social Responsibility is so large because to increase the sales of the product and to create a positive image in the competitive market the practice of Corporate Social Responsibility is a must.
Literature Review on CSR (Corporate Social Responsibility)
CSR has attained so much remarkable quality in the course of the most recent decades in response to the field of academic literature. The literature review of Corporate Social Responsibility interprets different hypotheses, theories, models, and research papers. It is contended that the field of business and the area of society are interconnected whereas society has certain desires from business and consequently the business has ethical duties and responsibilities towards its society. Thus, for being a steward of the necessities and needs of society, the business is deemed to be responsible for the welfare of society.
(Hancock, 2005) has mentioned three views of Corporate Social Responsibility. The first one is skeptic view whereas Corporate Social Responsibility is defined against the philosophy of freedom and the aspect of democracy, whereas it is disappointing that the business focuses on its motivation of wealth maximization along with the responsibility towards social welfare. The second one is a utopian view whereas Corporate Social Responsibility defined as an obligation of the business organization to society moved by the business activities along with their business partners or the shareholders or the investors, and particularly the vulnerable aspect that might be misused by the activity of the organization. The third one is realist view whereas it assembles the best model of the alliance that Corporate Social Responsibility isn’t just about the practice of wealth maximization, assets valuation, increase of profit, fundraises but it should be the practice by the organizations to put resources into communities for the welfare of the socially disadvantaged people to resolve or reduce their social issues. So, it refers to the kindness of the business organization itself to link up this policy with the branding of the organization to meets its vision, mission, and goals, and finally evaluates its effects and importance on business progress by contributing to CSR program.
(Kotler and Lee, 2005) mentioned about 5 C regarding the theory of Corporate Social Responsibility. The first C means of the category for Conviction whereas it is about realistic or actual improvement towards the business implementation and execution. The second C implies the category for Commitment, whereas it defines Business is committed for social welfare. The third C means of the category for Communication whereas it reduces the communication gap between the business and the society and other stakeholders beyond the business partners. The fourth C means of the category for Consistency whereas it is considered as the continuous improvement of the business with a continuous contribution towards the society for social welfare. The fifth C means of the category for credibility whereas business should be realized that the ability of the business relies upon the credibility of the social welfare.
(Bowie, 2008) has mentioned four Corporate Social Responsibility Model. First one is Economic Model whereas it is assumed that business is responsible to meet up the economic functions towards the society under the responsibility of CSR Program because business are created for the society and business must follow all obligations of society to operate the business and they are ethically obliged to contribute for society as the business is established by the society. Therefore, CSR Economic Model of CSR defines that business is socially responsible for profit sharing for the development of society. The second one is Philanthropic Model whereas this model defines that business is always free to contribute for the society and the welfare for the disadvantaged people of the society. Even, the can contribute by producing product for society. So, business has no legal bindings to contribute for social welfare and they are fee to organize or arrange a charity program for donating money for the people of society who are disadvantaged in society. CSR Philanthropic Model assumes that there are some occasions may held for charity work because CSR helps to increase public relation within the society and increase product branding by the program of CSR towards the society. It also increases the goodwill of the firm and develops a better reputation of the firm or the familiarity of the firm within the society or its community. CSR Philanthropic Model considered CSR program as an investment as it will increase brand or public relations of the business image to the market. The third one is the Integrative Model whereas this model considers that business must attain social goal into the core practice of business philosophy and business is fully integrated with the goal of economic benefit and social contribution. CSR Integrative Model classified the social goal as strategic missions of the business organization and it is the central point of business to set the social goals. Moreover, this CSR Integrative Model states that there must have a relationship between profit and social responsibility because profit should be shared within the social community for the development as well as welfare or largely societal infrastructure development. The fourth one is Social Web Model whereas business as the prime citizen of the society are ethically responsible to contribute for the society as they are the most important part of the society and also the most important member of the society because they do business for society and earn benefit from the society. So, the will be ethically responsible to donate, funding, contribute vastly for the development of the society and its people.
(Murphy, 2018) states that Corporate Social Responsibility is important for business regarding its product branding, increasing public relations, increasing sales, building branding image and also increasing the goodwill of the firm. To improve the branding image of the firm CSR is most applicable. By anticipating a positive branding image, an organization can become famous or familiar for being benefitted financially as well socially. To connect with customers CSR is most effective It is most important to build relations or connection with the customer as it is much required for the business to increase the loyal customer. A loyal customer who knows about the regular contribution of the firm’s CSR program, then he or she is initiated to buy the product of that firm every time as they think that they are also contributing to the society by buying the product of the firm. It is only possible when the public relation between the business and society is increased and it is done by the practice of CSR program. To retain the loyal customer is most effective by CSR program. CSR program engages representatives to use the corporate resources available for the betterment of the society. To help business in the competitive market because the competition of the business in this global world is increasing day by day. So, it is very important to represent the product or services of the business in a unique way. In that case, the CSR program is a great evaluation to divert the customer from other products as when people will come to know that this firm is engaged with a continuous social contribution by the means of CSR program. It is true that organizations are associated with the social issues to resolve, they may get extra benefit from the people of the society because it is the form of creating relationships with clients and their neighborhoods improve the brand’s image (Collier, 2018).
References
Bowie, 2008. Models of Corporate Social Responsibility. Business and Society, 12(2), pp. 256-269.
Collier, E., 2018. The Importance of Corporate Social Responsibility for Your Business. Business and Society, 24(8), pp. 28-56.
Hancock, 2005. Views of Corporate Social Responsibility. Business and Society, 12(2), pp. 102-112.
Lee, K. a., 2005. 5 C of Corporate Social Responsibility. Business and Society, 4(1), pp. 42-48.
Murphy, C. B., 2019. Why Social Responsibility Is Important to Businesses. Business and Society, 2(1), pp. 12-28.
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