Corporate Social Resonsibilty Csr

Corporate Social responsibility (CSR) suggests that organisations should not only consider their customers and profitability, but also the good of the wider communities, local and global, within which they exist. It is further explained by Dunfee et al (1999) as the concept of a social contract between business and society whereby business is permitted to make profit by delivering the goods and services that society wants and needs in return for operating within a moral and ethical framework laid down by society.

The most obvious advantage that the firm will benefit from by being socially responsible is the enhancement of its corporate image. Building a reputation as a socially responsible business sets the organisation apart from its counterparts. This in turn will increase sales and profitability as customers usually prefer to use products of organisations who are socially upright.

Some customers not only prefer to use environmentally friendly products but insist on it. Furthermore, customers, who feel happy and satisfied about the organisation’s responsibility, usually end up talking positively about the organisation. Conversely, if the organisation is socially irresponsible, the dissatisfied or angered customer will talk negatively about it in the society. In this day and age where pressure groups are very prominent it makes sense to be socially responsible thus avoiding being tagged negatively. It takes a long while to remove the stigma of a tarnished image before customers may trust the organisation again.

Recruitment of employees for a socially responsible organisation is much easier. Many are willing to work for those organisations and usually management has the onus of selecting the best from a long list of highly skilled personnel. In addition, those employees who are already within the organisation prefer to render their services for many years. This reduces the cost of disruption, recruiting and retraining.

In a socially responsible organisation,...