Corporate Social Responsibility in Business

CORPORATE SOCIAL RESPONSIBILITY IN BUSINESS

Course: Business Functions

Date: 15.11.2013

Today, in times of economic and financial stresses, societies became more vulnerable, thus the need for focus on the bigger meaning of social responsibility (SR) in business increased a lot. Early notion of corporate social responsibility (CSR) was limited to philanthropy, but the society's perception of the term had changed due to the process of globalization and the concept had expanded to ethical behavior and sensitivity towards social, cultural, economic and environmental issues. The aim of this essay is to discuss three main focus areas of corporate social responsibility – responsibility towards customers, employees and environment – and to demonstrate their influence and importance using practical business life examples.

A study by the public relations and marketing firm Cone Communications and Echo Research, based on surveys of more than 10,000 shoppers in 10 countries including the US, Canada, UK, Russia and China, revealed that more than 90 percent of shoppers worldwide are likely to switch to brands that support a good cause, and are more likely to trust and be loyal to socially responsible businesses that pay attention to obeying local, national and international laws. Consumer protection laws are adamant federal and state statutes governing sales and credit practices, regulating deceptive or unconscionable advertising, product quality and other aspects, therefore companies are legally obliged to be absolutely clear about taxes and the price customer has to pay when they advertise or sell something to him. Moreover, advertisements for reputable companies almost never lie but not always tell the Whole Truth to put their clients in the best light. For example, an ethical brainteaser we deal with every day is: “What can you legitimately simulate to illustrate the truth?” Before answering “Nothing”, ask yourself if a Higher Purpose would be served if Pampers and...