Describe Social Responsibility is Beneficial to Companies

Social Responsibility is Beneficial to Companies
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Social Responsibility is Beneficial to Companies
Social responsibility of corporate social responsibility as it is commonly known is mainly based on the concept of sustainability. Through this concept, businesses are expected to comply or operate within the set laws as well as moral codes to run their daily operations while ensuring that they do not put the lives of the public at risk. Corporate social responsibility or CSR mainly involves activities such as the willingness to use renewable energy sources to reduce pollution rates, mobilization of the public towards protection and conservation of the environment, proper waste disposal mechanisms, creation of awareness on certain issues including employees and consumer rights, etc. CSR encompasses different things and simple denotes or includes the activities companies are involved in but whose motivation is not profits. In many countries, CSR is considered a mandatory task and every company is expected to adhere to the set rules. The main goal of CSR is to hold companies accountable to the society and to ensure that no single commercial activity is conducted at the expense of the public. Social responsibility is grounded on integrity and for it to be a success, it should be part of the company’s culture before it is spread outwards. CSR is indeed beneficial to the community as well as the companies. However, the benefits for the latter are not quite direct and hence some companies often try to find loopholes so that they can ignore or bypass their duty to the public. The truth is, however, companies can accrue real benefits from their duty to the public. By expounding on factors such as increasing shareholder value, building a company’s reputation, professionalization, among others, this article seeks to showcase that CSR does indeed has some benefits for companies.
Every company’s goal is to grow its profits and this is often done using the idea or concept of the end justifies the means. This simply means that companies never seem to care or care less about how they make their profits but that they are making profits. Shareholders, on the other hand, always expect companies to make profits for the sole purpose of increasing their value in a company. Therefore, pressure for companies to excel is always there with the public also demanding that companies act responsibly. The easiest way to make profits is to simply increase one’s sales volume and this is highly dependent on how consumers view a company and their willingness to stick with the products of a particular company. However, customer loyalty is not an easy thing to achieve. But, on the other hand, it is indeed possible to achieve it especially through CSR. A company under wise management will seek to build its reputation and to endear itself to the consumers. Consumers like to be involved with a company that shows them it cares for them, the environment, and their children’s future. Therefore, through various public initiatives, a company can position itself for greater success while increasing its profit’s margin.
CRS is also beneficial to companies because it helps to build a company’s reputation or to ...