Walk your Talk through CSR
An organisation is an entity which works together in groups to meet and achieve a common goal. We discuss Corporate Social Responsibilities (CSR) concepts under the scheme of social entity. As an Economical entity, the main objective of a firm is to make profit by selling goods or services.
The organisation earns income, which in turn reduces the cost to gain profit. From the profit earned the organisation is to pay returns to its investors (ROI), thereafter the organisation can decide of innovations and expansion of the organisation itself.
An organisation will concern of the CSR concept when the basic requirements or expectations are met through economical objectives. CSR concepts are practiced under various conditions of cultural and moral obligations of stakeholder’s wealth.
Researchers have found that the existence of an organisation is well approved in the long-term by its welfare schemes and schedules being practiced.
Legendary economist Milton Friedman famously declared that corporate responsibilities are “fundamentally subversive“, some critics fear that R&D could suffer as a result. In reality its a social acquaintance to serve the society after earning from it, more of a pay back for the loyalty of its stakeholders.
Any organisation has a driving force towards endearment that have a culture of caring and serve the interest of their stakeholders. This endearment enforces the organisation to take a stand as a social citizen. It is the step towards the acceptance of cultural values and honor-bound of social values.
Goals are supported by strategies which organize planning. CSR concepts are practiced in the long-run after the organisation reaches its potential targeted goals. Corporate Social Responsibility is the process of embracing the responsibility of the organisation in possible and approved links which benefit the stakeholders; owners, managers, employees, customers, suppliers, government etc.
With its growth the organisation develops an impact on the external environment which needs to seize the status of a social citizen. Organisations earn a competitive and sustainable benefit by practicing CSR concepts.
Shaper of the society
Multiple Shareholders interest
Long-term shareholders interest
Short-term shareholders interest
There are four levels of CSR
Short-term shareholder interest concerns over the economical achievements of the organisation and how the organisation has benefited the customers through pricing, quality and quantity of the goods or services being provided, and shareholders with a convincing return on investment plan.
Long-term shareholder interest concerns over the next level of economical achievements through innovation and expansion of the organisation along with earning profit and return of investments to investors.
Multiple shareholder interest it’s an undeniable fact that all interested parties interests cannot be fulfilled therefore the organisation needs to analyse the potential priorities when practicing CSR.
Shaper of the society (Ideal level) this would be the ideal level of CSR as organisations practice social responsibilities. Endearment from humanistic conduct excel firms creating values which turn stakeholders be-love it. This easily promotes the organisation while these firms spend more on CSR practices than in marketing.
Corporate Social Responsibility hierarchy consists of four levels:
These are the responsibilities of the firm to establish its business goals to achieve sales and profits there from. Organisations are to establish plans monthly, quarterly and annually that meet the targets. Increasing production and sales which could promote the goods and services in creation of brand name. Development of a brand name can promote the organisation without spending financial resources on marketing.
The responsibilities of the organisation which needs to ensure the employee transparency towards the customers when providing goods and services. As it’s illegal to keep information away from the customers therefore its important to act on law according.
These are the organisation needs to be concerned about, what it leaves to the community or society. Meeting cultural and societal expectations lead to the image an organisation creates of it. The organisation should promote the practices in favor of the product or service they sell which meets the requirements and expectations of the society.
When an organisation assists its services through unexpected responsibilities which are additional and differentiates the business from the competitors it is considered to be an ultimate service being provided to the Stakeholder, a discretionary.
CSR concepts are practiced more frequently as organisations feel good about customers, employees and stakeholders being satisfied. They receive compliments and their sales increase. Organisations are increasingly work with public and interested groups to avoid green-washing – insincere, phony efforts to appear more environmentally friendlier than they really are.
An organisations sustainability is important to exist in the market. Meeting the requirements of the society without harmful actions towards the future generations assures an organisations sustainability.
Organisations practice CSR concepts through ethical conduct which benefits the society through socially desirable and accepted behaviour which tend to do rightful activities to all the interested parties.
Article By: Shameema Mukthar