Benjamin Franklin once said â€œIt takes 20 years to build a reputation and five minutes to ruin it. If you think about that, youâ€™ll do things differently.â€ The 21st century is moving corporate social responsibility (CSR) to new levels. With social media in todayâ€™s world, it can have positive or negative impacts on an organization. There is now more focus on operating and processes ensuring ethical behavior within the company, community, and environmentally. (Corporate Social Responsibility, 2014)
There are many benefits to using strong corporate social responsibility within an organization. Since there will always be competitors in todayâ€™s market, a company must ...view middle of the document...
â€ (The Benefits of Corporate Social Responsibility, n.d.) While Corporate Social Responsibility is known at times to have additional stress that many companies are not ready to endure but has been proven to have positive outcomes and offers many benefits. (Paetzold, 2010. pg 7) â€œIn the course of time companies should detach themselves from seeing CSR only as a strategy which slows down profits and that is it something the corporation itself should not have to get involved in. Instead CSR should be regarded as a chance to create a better image for the corporation, promote social responsibility to society at large and eventually raise revenues in the long run.â€ (Paetzold, 2010. pg 8)
Main reasons for CSR
Forbes published an article stating that there are six main reasons why a company should embrace corporate social responsibility. The first business process is innovation, creatively think for new creations by researching and development. The second process is cost savings, which is one of the easiest ways to start. For example an organization researching different options available in the unlimited market available throughout the world and coming up with ways to cut costs like changing packing to something cheaper. Third process is brand differential, allowing a company to incorporate their own values into their business plan and model. The forth process is looking out for the companyâ€™s long term interest and ensuring positive growth for them in the future. The fifth process is customer engagement; this process allows the company to be able to engage their customers in new ways. Finally, but not least, is employee engagement. Employee engagement is a pretty important process as it enables employees to help with solutions and also shows them that they are important to your company. (Epstein-Reeves, 2012)
Customers prefer CSR practices
Customers in todayâ€™s market, often favor suppliers that demonstrate these responsibilities or even insist that these practices are in place before they will do business with your company. Setting an example with social responsibilities management in your company helps build the reputation that will make sure your company stands out as a responsible business and it makes you different from the other competitors. (The Business Benefits of Corporate Social Responsibility, 2012)
Managing director of Echo Research, Dan Soulas, said â€œConsumers across the globe resoundingly affirm CSR as a critical business strategy.â€ With the release of the 2013 Cone Communications/Echo Research CSR Study, it shows that consumers possess high expectations and avidly consider CSR in their decisions. Only 6% of consumers...