Corporate social responsibility (CSR) is an ethical, deliberate set of actions and activities which are normally geared to make an impact on the business or company’s activities. Corporate social responsibility is widely practiced by many corporate entities. However, the question begs answer is that is there a relationship between CSR and company profit increase, efficiency in the workplace, employee satisfaction, and customer and investor confidence. This report not only answers those questions but also affirms that CSR is critical for the increase in efficiency in the workplace. In addition, it is a great marketing tool for brand visibility and penetration for both big and small companies. Efficiency in workplace and company profits are very critical for sustainability and CSR provide an opportunity to increase profits and efficiency among employees.
Corporate social responsibility (CSR) is critical in modern corporate business strategy. Companies should actually show responsibility to their workers by taking a good care of them, before extending their best intension outside the workplace. It is the ultimate responsibility of human resource managers or the employer to design ways and modalities of treating employees in a way that they look forward to coming to work every day. Employees are the best public relation officers, and therefore they should be accorded the best. This will not only reward their efforts but also endear them to the company. The term Corporate Social Responsibility is a multifaceted concept which calls for a greater meaning rather than simple. Many people see CSR to be corporate public relations; however, CSR has a deeper, meaning which transcends many spheres of business and human welfare. Corporate Social Responsibility is a, “process of operating a business that meets or exceeds the ethical, legal, commercial and public expectations that society has of business” (GSI, 2006).
It is important to note that HR practitioners and managers who employ CSR at the workplace should have a broad view of employees and human welfare (GSI, 2006). In this regard, if the business has a long-term goal to deliver a sustainable value, human capital is very important in strategically implementing prudent management practices that hold the company’s business goals. This is a report on the study carried out on the impact of corporate social responsibility and efficiency in the workplace. In addition, the study critically looked into ways of how business ethics and social responsibility can be used to increase efficiency, the effect that it can have on the reputation of the company, and the effect it can have on the company’s relationships with employees, investors, and customers.
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This report highlights the impact of corporate social responsibility in the workplace and how the business can implement ethics and social responsibility to improve its reputation among employees, investors and customers. The report also provides insightful information on corporate social responsibility which lays down the guideline which can be used by the company in reviewing and designing different corporate policies.
The study employed the use of secondary information, majorly peer-reviewed journals and case studies. This methodology was deemed relevant to the topic of the study and the information the company required on the claim that corporate social responsibility increase efficiency in the workplace as well how CSR impacts the company reputation and relationship with employee, investor and customers
CSR increases efficiency in a company. Employees who are motivated talk well about their company. This makes the employees feel part and parcel of the company. This makes them work hard and efficiently in their tasks. Thereby, efficiency is critical for the company’s growth and development.
Analysis: Efficiency in a workplace is fundamental in running a successful company. It is important for a company to engage in activities which promote efficiency among the company employees. These activities tend to reward, motivate and recognize the employee as one of the strongest pillars of the company.
It is found that enthusiastic CSR initiatives raise chances for the company getting in the FTSE4Good or Dow Jones Sustainability Indexes and other (Robins, 2011). Listing has had an impact on the instant increase in the company’s market value, as a result of positive perception the customers and investor have in the company. The gain received results in more profits which makes the investors happy. However, it is found that most companies’ executives still hesitate to apply what they have known on corporate social responsibility being concerned with their companies’ profitability (GSI, 2006).
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Analysis: Listing in FTSE$Good or Dow Jones Sustainability Index improves the overall image of a company. This is important in customer attraction and retention as well as boosting investors’ confidence. Image and perception is very important in business operation.
It is found that CSR improves company revenues and profits (Robins, 2011). To start with, it is found that most executives are well aware that CSR can improve profits. Most of them also understand that CSR enhance adoration for their company in the marketplace which results in higher sales. Robins, (2011), highlights that “employee motivation and reward reduce turnover in a company”. On the other hand, Friedman, (1970) affirms that “corporate social responsibility geared towards employees improves efficiencies among the workforce”.
The study of CSR and its relationship to business profits is rapidly growing. CSR contribute both directly and indirectly to profit accumulation in the company. Company sales rise as a result of marketing and customers’ love for the products and services. CSR being a strong marketing tool, it promotes profit margins in a company.
The study also found out that the benefits associated with CSR has necessitated large public company today not to be left out unengaged in CSR (Lee, 2008, p.55). It is prudent to note that “that is clear admission of how important CSR might be to their bottom line, no matter how difficult it may be to define CSR and link it to profits” (Lee, 2008, p. 56). The research studies carried out has generally demystified claims that there is no clear-cut relationship that corporate social responsibility (CSR) directly result to profits and thus most large companies are actively engaged in it (Garriga, and Mele, 2004, p.53).
Analysis: Profit in a company is important for sustainability and growth.CSR increase profit by ensuring that customers identify the company as their best choice based on CSR activities they get involved in. Increased efficiency in a company as a result of CSR which rewards employees results in high profits.
Findings number 4
CSR boosts the Company’s internal and external Relationships. In the analysis of experience of CSR in relation to different industries it is noted that good internal relationship in a company is critical for growth and development (Robins, 2011). In this regard, the results also points out that, corporate social responsibility is a blessing to consumers. It is also found that CSR has got a tight emotional impact to customers, employees and investors (Luck, 2006, p.80). This is because it makes them feel part of the company. This perception is quite important for sales and growth of any given company.
Keith Davis’s model of corporate social responsibility provides five propositions that clearly describe the need for businesses to take action that protects and improves the welfare of society and the organization (Luck, 2006, p.79)
These prepositions include:
- Proposition number 1 on CSR: Social responsibility arises from social power (Davis, 1960, p.71).
- Proposition number 2 on CSR: Business and organization should operate as an open entity, with open receipt of society involvement and being open to the public in their day to day operations (Davis, 1960, p.71).
- Proposition number 3 on CSR: The social costs and benefits of an activity initiated by accompany should fall within a company strategic plan (Davis, 1960, p.71).
- Proposition number 4 on CSR: Social costs related to each activity initiated are normally passed on to the consumer (Davis, 1960, p.71).
- Proposition number 5 on CSR: Business organization should have a responsibility of initiating a project which is focused on solving social problems (Davis, 1960, p.71).
This guideline offers an incredible platform for companies and firms to design CSR initiatives which propel them a head of competitors.
- Based on the reviewed studies above, CSR promotes company profits
- It also improves a good relationship among the employees, investors and customers
- It forms one of the best marketing tools thereby improving brand penetration
- It improves the company’s image both within and outside hence the company reaps the benefits associated with the good image.
In the implementation of any CSR initiative, all companies, firms or organization should adhere to the following four major areas of measurement of the success or failure of CSR projects.
- Economic benefits of CSR to society: This is a measure which gives indication of the economic contribution the company is making to the society and other stakeholders such as employees, customers and investors
- Quality-of-life in the society: This measurement modality should indicate whether the quality of life of people in the society is either degrading or increasing.
- Social investment in the society: The measurement of social investment is comprised of the capability of a company or organization for investing monetary, human resources and expertise to solve community problems.
- Problem-solving in the society: This is a measure of how CSR are geared towards problem solving is normally directed to the capability of an organization to design programs which are meant to solve problems in the society.
Analysis: A good internal and external relationship is very important to a company. This is because it is a marketing tool for the company. Employees talk well a bout their company when they are satisfied and accorded respect in the company.
Recommendation 1.The Company should design a welfare policy which recognizes and rewards employees for their achievements. This will go along way in motivating and encouraging workers to be more efficient and feel part of the company.
Recommendation 2.The Company should engage in a well-designed CSR which not only furthers the company’s needs and aspirations but also is at the center of social well-being wider society. This will make the society appreciate the company’s activities and encourage a broad approval from the people.
Recommendation 3. The company should put up an elaborate strategic plan for CSR and engage all employees and stakeholders in designing CSR projects. This will reduce conflict and improve chances of corporate success.
The projects a company can get involved in to protect and improve the welfare of a community are numerous and diverse. It is now clear that CSR has more than just being philanthropic. The concept of CSR is growing very fast in the corporate world. However, it is prudent to note that a company should be vigilant enough to spend money on real projects, which make a difference in the society and position for greater growth and development.