Implementing CSR Policies Is Beneficial For A Company’s Bottom Line

Question: Discuss about the Implementing CSR Policies Is Beneficial For A Companys Bottom Line A Critical Evaluation. Answer: Corporate Social Responsibility (CSR) polices are playing a very important role in improving the brand reputation of an organisation in the market. It enables an organisation to carry out their business in a socially responsible manner by providing them with a platform where they can effectively contribute towards the growth and development of the society. The definition of CSR has evolved over of the years and according to Dahlsrud, (2006) there have been as many as 37 different definitions of CSR. The roots of CSR could be traced back to the period between 1945 to1960. The idea of CSR essentially emerged from the concept of corporate philanthropy where it was considered to be the obligation of business leaders to financially support good causes (Porter and Kramer, 2002). According to Porter and Kramer (2002), the CSR plays a very important role in creating a win-win situation for both the society and the business establishments. CSR plays a vital role in helping business organisations to engage with the public in an effective manner. There has been a scientific proof of the interrelation between and organisations business performance in the market and their social commitment as expressed by scholars Margolis and Walsh (2003). CSR can be considered to be an efficientmanagement strategy wherein accompany can increase their exposure in the market and effectively market their brand. This can become a crucial factor in determining their future growth and success in the market. Short term activities such as donating to social causes or corporate philanthropy are not effective strategies to achieve their main objective and this does not comprise CSR. CSR is essentially a long term proposition wherein an organisation has to constantly give back to the societ y and contribute towards the overall development and growth of the society (Global Reporting Initiative, 2006). By participating in CSR activities, the companies are invariably investing in their own future by chalking out an accurate roadmap to ensure their sustainability in the market. Thus, CSR activities must be planned and supervised in a detailed and careful manner so that corporate establishments can enhance their own brand reputation in the market by actively contributing towards the progress of the local communities (Muller and Whiteman, 2009). Improving the overall bottom line of a business is not the sole purpose of CSR. There are many corporate entities which genuinely care for the society and thus they are constantly trying to conduct their business in an ethical and socially responsible manner. This enables them to make their business more environmentally sustainable by satisfying and considering the needs and interests of their employees as well as the larger community where they are conducting their business operations in the market. This enables them to ensure the smooth continuity of their business operations in the market (Carroll and Buchholtz, 2009). References Dahlsrud, A. (2006). How corporate social responsibility is defined: an analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, September. Available at: https://www.csr-norway.no/papers/ 2007_dahlsrud_CSR.pdf Carroll, A.B. and Buchholtz, A.K. (2009). Business and Society: Ethics and Stakeholder Management, 7th edn. Mason, OH: South-Western Cengage Learning. Porter, M.E. and Kramer, M.R. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, 80, pp. 5669. Margolis, J.D. and Walsh, J.P. (2003). Misery loves companies: social initiatives by business. Administrative Science Quarterly, 48, pp. 268305. Seifert, B., Morris, S.A. and Bartkus, B.R. (2004). Having, giving, and getting: slack resources, corporate philanthropy, and firm financial performance. Business and Society, 43, pp. 135161. Lee, M.P. (2008). A review of the theories of corporate social responsibility: its evolutionary path and the road ahead. International Journal ofManagement Reviews, 10, pp. 5373. Muller, A. and Whiteman, G. (2009). Exploring the geography of corporate philanthropic disaster response: a study of Fortune Global 500 firms. Journal of Business Ethics, 84, pp. 589603. Spector, B. (2008). Business responsibilities in a divided world: the cold war roots of the corporate social responsibility movement. Enterprise Society, 9, pp. 314336. De Schutter, O. (2008). Corporate social responsibility European style. European Law Journal, 14, pp. 203 236. Global Reporting Initiative (2006). Sustainability Reporting Guidelines. Amsterdam: Global Reporting Initiative.