Significance of Corporate Social Responsibility to Corporations

Significance of Corporate Social Responsibility to Corporations
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Significance of Corporate Social Responsibility to Corporations
Companies need to improve society and make it a better place for all its inhabitants. In this regard, they have an option to participate in corporate responsibility. Although it is not a mandatory practice, corporate responsibility is essential to all organizations. This is because it reflects the commitment of firms towards the local and global communities. Moreover, it results to advantages such as a good public image, innovation, engagement of both customers and employees as well as positive media visibility. In turn, this advantages make it attractive to the public and customers want to be affiliated with it. Eventually, this translates to more sales and high profits making corporate responsibility an important issue.
With corporate social responsibility, the public image of a company is set to improve. This is because the act of being socially responsible changes people’s perception towards the specific firm. Accordingly, the social responsibility programs of a company have positive impact to the members of the public. Particularly, the consumers begin seeing the company as better off compared to others which are not socially responsible. In turn, most clients become encouraged to be affiliated with organizations that help the community. For instance; company EGF is involved in volunteering actions to clean up the community’s environment. It also runs an annual program which is aimed at offsetting high medical bills of aged individuals who suffer from chronic illnesses. Such a company is likely to become favorable in the eyes of the society and especially the consumers. Consequently, the clients who know about its philanthropy would make an effort to shop or obtain services from that specific company (Surroca, et al. 2010). Evidently, the volunteering actions of the firm can be termed as publicizing efforts which were made in a bid to improve the firm’s corporate image.
Corporate responsibility increases the media coverage of a company. It is this media coverage that helps in marketing the company and the activities it engages in. However, for the marketing to be effective, the media coverage has to be positive (Hamdani & Awatara, 2015). In this regard, a company needs to engage in acts that are beneficial for the community so that it can be positively portrayed by the media. Besides doing the ordinary such as cleaning the environment, the company has to go overboard and engage in a more constructive activity. For example; it could use a rarely used renewable source of energy and reuse its potentially harmful byproducts in a bid to reduce environmental pollution. This would be essential because engaging in such unique and productive activities makes a company suitable to the media interests. In turn, the company would receive more media visibility compared to its counterparts which engage in the same activities. Ultimately, most of the clients would want to be associated with the media visible company compared to the others which are not.
Another significance of corporate responsibility is that it boosts employee enga...