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    Solutions, Greenleaf Publishing, 2007, P. 102

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    Silvia Wong
    Corporate social responsibility (CSR) is becoming more popular for several reasons: 1) Many companies believe CSR can improve their financial position by helping them stand out from competitors and boost brand loyalty. However, CSR is not solely about profits but also has an ethical component of improving communities. 2) Companies view CSR as an opportunity for sustainability and innovation that can create happier employees and open new markets. 3) Many use CSR to reduce costs by implementing more environmentally friendly practices like reducing waste and recycling resources.

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    Solutions, Greenleaf Publishing, 2007, P. 102

    Uploaded by

    Silvia Wong
    787 views2 pages
    Corporate social responsibility (CSR) is becoming more popular for several reasons: 1) Many companies believe CSR can improve their financial position by helping them stand out from competitors and boost brand loyalty. However, CSR is not solely about profits but also has an ethical component of improving communities. 2) Companies view CSR as an opportunity for sustainability and innovation that can create happier employees and open new markets. 3) Many use CSR to reduce costs by implementing more environmentally friendly practices like reducing waste and recycling resources.

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    Corporate social responsibility (CSR) is becoming more popular for several reasons: 1) Many companies believe CSR can improve their financial position by helping them stand out from competitors and boost brand loyalty. However, CSR is not solely about profits but also has an ethical component of improving communities. 2) Companies view CSR as an opportunity for sustainability and innovation that can create happier employees and open new markets. 3) Many use CSR to reduce costs by implementing more environmentally friendly practices like reducing waste and recycling resources.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    787 views2 pages

    Solutions, Greenleaf Publishing, 2007, P. 102

    Uploaded by

    Silvia Wong
    Corporate social responsibility (CSR) is becoming more popular for several reasons: 1) Many companies believe CSR can improve their financial position by helping them stand out from competitors and boost brand loyalty. However, CSR is not solely about profits but also has an ethical component of improving communities. 2) Companies view CSR as an opportunity for sustainability and innovation that can create happier employees and open new markets. 3) Many use CSR to reduce costs by implementing more environmentally friendly practices like reducing waste and recycling resources.

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    of 2

    3. Why CSR becomes more popular?

    Companies from all different part of the world and industries are become more interested in
    getting involved in corporate social responsibility. Everybody agrees that it is not only a
    promising thing but also particularly desirable. CSR makes a really good commercial sense. It
    is getting more popular year after year and enormous companies are participating in CSR .
    There are a few good reasons why companies do it.
    Many companies think that engaging in corporate social responsible can improve its financial
    position. However, it is not always the case. Participating in CSR is not only a process of
    making money or a vote to fulfill economic obligations. It is a special ethical request
    connected with trust, responsibility, respecting others and caring. Companies have an
    additional ethical obligation to take care of the community and try to help to improve it by
    attempting to find a solution for many social problems such us poor wages, pollutions,
    collapsing small towns1. Companies causing most of these problems have an opportunity to
    take responsibility and fix them. It gives them a chance to contribute in helping their society
    or even the world as a whole.
    In addition, lots of companies consider participating in CSR as an opportunity to achieve
    sustainability development. They treat CSR as the next part of innovation advantage for
    their progress, as a tool to compete with other2. CSR gives them a chance to have more
    pleased and productive employees, open a new market and what is the most important and
    tempting- it can help to make a company stands out from the rest. A well-prepared and strong
    CSR image can differentiate a merchandise from its competitors and can help to amplify the
    brand image. It definitely helps to reinforce costumers loyalty. According to the latest
    research, almost 40% of customers in USA doesnt want to buy product from the company
    which has a poor CSR image.
    Besides, many companies use CSR as a tool to reduce the costs of the business. By reducing
    waste and recycling recourses, companies are identified with the green agenda. These help
    company to save money and also are connected with ethical issues.3

    4. Responsibilities to different stakeholders?


    1

    Boyle M.E, Boguslaw J., Business, Poverty and Corporate Citizenship; Naming the issues and framing
    solutions, Greenleaf Publishing, 2007, p. 102
    2
    Prahaland C.K, Hammond A., Sevings the Worlds poor profitably, Harvard Business Reviev, 2002, p. 5
    3
    Burns P., Corporate Entrepreneurship; Building an Entrepreneurial Organization, Palgrave Macmillan, 2008,
    p. 343

    EEs, shareholders, suppliers/creditors, government, Customers, General Public...etc


    The main concept of CSR is that companies cannot exist as isolate entities operating away
    from broader society.4 CSR creates a new role not only for business concerns but also for
    the other key players. It means that ethic, social and really often ecological criteria created
    by CSR- must be taken into consideration in the treatment of employees, production of
    products and services and operation. Responsibility connected to a various stakeholders is
    called stakeholder theory. It is an idea that each of these groups is important to the success
    of a business. CSR is about individual business and institutional structure as well. CSR is
    giving attention to every stakeholder of the company- employees, customers, suppliers,
    managements and even the community. According to the theory they can create something
    only together even if every of them has an idiosyncratic aim.
    First of all, customers have the most influential ability to change the direction of a
    corporation. They are the most significant group of constituents. They expect good quality
    products and prefect customer service. Every customer has a right to be informed and should
    not be deceived because of exaggerated advertisements. What is more

    Companies are expected to pay their taxes and help to protect the environment.
    On the other hand stakeholders, especially some of the most senior are once who are
    focused on CSR and try to amend it and treat as a real important issue. The employees want
    to have a security job and high wages. Nowadays, many young people are interested in
    working for companies which have some awareness of social responsibility. Managers would
    like to have efficient, happy workers and big profits. Suppliers want to have an abundant
    business. They make business more innovative and more creative and owners expect the big
    financial profits.

    Corporate Social Responisibility, http://www.iisd.org/business/issues/sr.aspx

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