Once management understands that the success of their business depends greatly on how their organisation is perceived, they will ensure that they engage in Corporate Social Responsibility (CSR).
Businesses are a vital part of every community in which they operate, as they offer both goods and services to the community. Business corporations in the past have been mainly concerned with the financial benefits derived from operating their businesses. In recent times however, they have been forced to consider others areas of their working environment and how they can contribute in a more meaningful way.
Corporate Social Responsibility (CSR)
Social Responsibility refers to an individual’s contribution to the well-being of people other than themselves and those they care about, without any monetary return. CSR is the involvement by an organisation in a venture that will improve the quality of life people’s lives, above that required by the law of the land.
CSR is an internal initiative which is developed by an organisation and has now been viewed as an essential part of the business model. This idea of business responsibility is the opposite of their usual focus, which is to maximise profits.
Some at the top of the ladder are still weary of the benefits of CSR, as they believe that profits that can otherwise be distributed to shareholders are ‘given away’. CSR is therefore seen as just another expense incurred by the organisation and not aligned with their profit-making objectives.
The Importance of Social Responsibility
Businesses are successful because of the support and patronage received from the communities that support them. Considering the profits made by these organisations, the investment in the community is warranted. As mentioned above, there is no law that states that CSR activities are mandatory, however, governing bodies encourage these ventures.
Benefits to the Business
One of the most noted benefits of engaging in CSR practices is its ability to increase the positive image of your business. When members of the community see that you are concerned about their educational, social and economic circumstances, there can be a sense of loyalty to your brand that is priceless. This then extends into possible expansion of the existing market share, which can result in greater sales and revenue.
