To what extent is CSR beneficial to a company’s performance?
To what extent is CSR beneficial to a company’s performance?
Corporate social responsibilities (CSR) and its influences on business success has been a controversial topic over the last few decades but it is not until 1988 was CSR officially stated in the Malcolm Baldrige Criteria for Performance Excellence (Foote, Gaffney & Evans, 2010). Proponents point out that socially-responsible company will be more likely to be financially successful, while critics contend that CSR is contradictory to the most innate characteristic of business, which is to strive for profit. In fact, there are numerous approaches to CSR, but the term is generally defined as the sustained commitment to pursue business growth ethically while generating comprehensive improvement on the living standard of society (Holme & Watts, 2000). This paper is going to uncover the impact of CSR on business performance by examining its potential benefits on sustainability, revenue generation and feasibility for corporations in various scales.
First of all, implementation of CSR tends to make the company more sustainable. According to the World Business Council for Sustainable Development, “CSR contributes to the long-term prosperity of companies and ultimately its survival” (Holme & Watts, 2000, p.3). For example, Toyota, being one of the world’s leading car producers, has committed to environmental responsibility in many areas. In particular, having anticipated the finite nature of fossil fuels and with the aim of “establishing low carbon society” (Toyoda, 2012, p.4), the company developed the first mass-produced hybrid vehicle, the Prius, in 1997. With such innovations, Toyota has generated a range of long-term benefits itself by opening up a new dimension of the business and promoting a sustainable and environmental-friendly business model. It also provides a great opportunity for the internal engineering team to investigate how to combine different technologies, which helps to stimulate innovations in
Corporate social responsibilities (CSR) and its influences on business success has been a controversial topic over the last few decades but it is not until 1988 was CSR officially stated in the Malcolm Baldrige Criteria for Performance Excellence (Foote, Gaffney & Evans, 2010). Proponents point out that socially-responsible company will be more likely to be financially successful, while critics contend that CSR is contradictory to the most innate characteristic of business, which is to strive for profit. In fact, there are numerous approaches to CSR, but the term is generally defined as the sustained commitment to pursue business growth ethically while generating comprehensive improvement on the living standard of society (Holme & Watts, 2000). This paper is going to uncover the impact of CSR on business performance by examining its potential benefits on sustainability, revenue generation and feasibility for corporations in various scales.
First of all, implementation of CSR tends to make the company more sustainable. According to the World Business Council for Sustainable Development, “CSR contributes to the long-term prosperity of companies and ultimately its survival” (Holme & Watts, 2000, p.3). For example, Toyota, being one of the world’s leading car producers, has committed to environmental responsibility in many areas. In particular, having anticipated the finite nature of fossil fuels and with the aim of “establishing low carbon society” (Toyoda, 2012, p.4), the company developed the first mass-produced hybrid vehicle, the Prius, in 1997. With such innovations, Toyota has generated a range of long-term benefits itself by opening up a new dimension of the business and promoting a sustainable and environmental-friendly business model. It also provides a great opportunity for the internal engineering team to investigate how to combine different technologies, which helps to stimulate innovations in
References: Evans, J. (2010, February 3). Good intentions: The credit crisis has compelled companies to take a more holistic view of social responsibility Foote, J., Gaffney, N., & Evan J. (2010). Corporate social responsibility: Implications for performance excellence Holme, R., & Watts, P. (2000). Corporate social responsibility: Making good business sense. Switzerland: World Business Council for Sustainable Development. Kent, M. (2012). Annual report 2011: The Coca-Cola Company. Washington, US: United State Securities and Exchange. Ohnsman, A. (2011, November 18). Toyota expects Prius sales to jump as oil prices climb. Bloomberg News Pohl, M., & Tolhurst, N. (Eds.). (2010). Responsible business: How to manage a CSR strategy successfully. UK: John Wiley & Sons Toyoda, A