ADM NO: MPAM/2018/31810

CHRISTOPHER OGOLA ODERO

What role should CSR and/or sustainability have on living the

“goal of the firm”?
Social responsibility is a business model that ensures that companies conduct their businesses in
an ethical way. It means the companies being accountable for their economic, social, and
environmental impact on the society while benefiting the stakeholders as well as the society in
general. The following are the major benefits of CSR:

1. Organizations
Organizations can benefit from CSR by enabling organizations to stand apart from their
competitors. When companies participate in activities that benefit the community, the
positive perception about their products is improved, creating a brand image for their
products. Collaboration between the community and the organizations increases brand
value, reputation, awareness and new market opportunities.

2. Employees
Employees are motivated to work for a company that has a good public image. CSR
fosters the well-being of employees and therefore encouraging them to work harder and
longer for the companies. Employees who feel positive about their work environment and
know what is going on in the organization increase the productivity and innovativeness of
the organizations.

3. Customers
CSR ensures that customers are given products of high quality at reasonable prices.
Ethical customer decisions make customers feel affiliated to the companies and they are
likely to buy their products because of the cause-marketing and corporate social
responsibility programs. Companies that are committed to assisting the community not
only get more approval from the consumers, but also retain them.

4. Shareholders/investors
Investors are encouraged to invest in companies where their funds can be properly used
in order to earn the maximum profits. Investors are more likely to invest in a company
that addresses ethical, social and environment responsibilities. Therefore CSR increases
capital for companies. CSR also builds trust and encourages more investments through
partnerships with other organizations.

5. Government
CSR improves good relationship between organizations and the government by ensuring
that all the laws and regulations are adhered to. Governments are able to give grants and
permissions to companies to engage in certain operations and business activities if they
 are socially responsible. Government can also protect the interest of a company, for
example, protection against unfair business practices by competitors.

6. Suppliers/retailers
CSR improves collaboration between a company and its suppliers and retailers. A
responsible supply chain management can be used to brand a company, increase
productivity and reduce cost. Suppliers are able to deliver raw materials with good value,
quality and reliability while retailers are to facilitate quicker reach of products to the
customers.

7. Society
CSR can improve the standard of living of the people living in the surrounding of the
companies through provision of services such a waste collection, recycling, construction
of schools and hospitals etc. CSR philanthropic programs generate benefits to the least
advantaged, helping the needy in the society. Provision of employment, infrastructure,
new technologies and innovations that can be used by everyone increases the standard of
living in the society. Protection of environment and reduction of pollution ensures that
there is good health in the society.

Other benefits of CSR:

-Promotes human rights/activist groups

-Promotes anti-corruption measures
-Encourages personal professionalism and growth
-Promotes media coverage of company products
-Encourages individual philanthropy
-Promotes volunteer participation (esp. for non-profit organizations)

REFERENCES:

https://doublethedonation.com/tips/why-corporate-social-responsibility-is-
important/#corporations

Moon, J. (2014).Corporate Social Responsibility: A Very Short Introduction oxford , York

New inc., Press University

Korhonen, J. (2003). Should we measure corporate social responsibility? Corporate Social

Responsibility and Environmental Management, 10, 25-39.

http://cubegroup.com.au/top-5-benefits-of-corporate-social-responsibility/