Corporate Social Responsibility
Essay Question: To what extent is Corporate Social Responsibility beneficial to a company’s performance?
In the 21st century, Corporate Social Responsibility (CSR) has become an important, if not essential, for businesses. In addition to basic law compliances, the focus of the consumers as well as the business world now include the impact the company has on the society and on the way they use recourses (Davis, 2010). CSR has become a contributing factor to a company’s financial performance. This is supported by the issued figures of sizeable direct contribution from CSR to a company’s profitability (International Corporate Social Responsibility Conference, 2006) from analysis of notable companies. CSR is believed to have assisted companies both externally and internally. 70% of European consumers express that they are ready to pay more on goods produced by socially responsible companies (CSR Magazine Europe, 2000). On the other hand, CSR is suggested to be one of the qualities employees would like to seek. As Copeland (2003), former CEO of Deloitte Touche Tohmatsu has highlighted, the best professionals in the world want to work for companies that exhibit good corporate citizenship. This essay aims at advocating Corporate Social Responsibility as a beneficial policy to a company’s performance through improving customers’ perceptions and employees’ work performances, and thus, can possibly result in a boost of company’s performance, particularly financially. A company’s revenue is mostly generated from customers. The Service-Profit Chain stated that customer value is one of the two factors that will heighten a company’s revenue and hence the company’s profitability( Zeithamal & Bitner, 2003). Therefore, a company’s financial performance is affected by how customers value a company’s products. CSR is believed to be a factor that adds value to the product as well as the overall reputation of a corporation. According to Cone Communication (2012), 82 percent of
In the 21st century, Corporate Social Responsibility (CSR) has become an important, if not essential, for businesses. In addition to basic law compliances, the focus of the consumers as well as the business world now include the impact the company has on the society and on the way they use recourses (Davis, 2010). CSR has become a contributing factor to a company’s financial performance. This is supported by the issued figures of sizeable direct contribution from CSR to a company’s profitability (International Corporate Social Responsibility Conference, 2006) from analysis of notable companies. CSR is believed to have assisted companies both externally and internally. 70% of European consumers express that they are ready to pay more on goods produced by socially responsible companies (CSR Magazine Europe, 2000). On the other hand, CSR is suggested to be one of the qualities employees would like to seek. As Copeland (2003), former CEO of Deloitte Touche Tohmatsu has highlighted, the best professionals in the world want to work for companies that exhibit good corporate citizenship. This essay aims at advocating Corporate Social Responsibility as a beneficial policy to a company’s performance through improving customers’ perceptions and employees’ work performances, and thus, can possibly result in a boost of company’s performance, particularly financially. A company’s revenue is mostly generated from customers. The Service-Profit Chain stated that customer value is one of the two factors that will heighten a company’s revenue and hence the company’s profitability( Zeithamal & Bitner, 2003). Therefore, a company’s financial performance is affected by how customers value a company’s products. CSR is believed to be a factor that adds value to the product as well as the overall reputation of a corporation. According to Cone Communication (2012), 82 percent of