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Social Responsibility: Good for Business

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Social Responsibility: Good for Business Corporate Social Responsibility (CSR) is very important to the success of business ventures. Although, CSR is not required when conducting business, it is much more beneficial to adopt values and morals than to abandon ethical responsibilities. The concept of social responsibility does not just include following government laws and regulations or charitable contributions. It includes going above and beyond the bare minimum that the government requires. Businesses should actively participate in the social affairs where the needs of the stakeholders should be considered. These needs could range from economic concerns to societal and environmental issues. CSR has the ability to strengthen a company by building a loyal consumer following. It can mean the difference between long-term success and failure. A slight miscalculation of key social and economical issues could result in ruined reputations, damaged financial integrity and injured relationships with customers and stockholders. (www.glocom.org) For example, a business may not want to spend money on environmental conservation issues (recycling, using non-aerosol cans) due to high costs. ...read more.


First of all, a firm that is socially responsible builds trust with its employees and stakeholders. Many widely respected magazines and publications, such as Fortune, conduct surveys that evaluate the reputations of companies based on various facets such as social responsibility. Other publications list companies that are great to work for and businesses that really help out in the community. Studies have shown that there is a connection between a firm's reputation and its share price. The second reason to be socially responsible is because firms do not want to attract bad publicity or to appear irresponsible. Oil companies, for example, fear oil spills not just because they are losing money, but also because it damages their reputation which results in more loss of money. The third reason an entity might be socially responsible is due to upper management or influential figures within the company. For instance, Ben Cohen and Jerry Greenfield created Ben and Jerry's Ice Cream. Ben and Jerry's Ice Cream has adopted social responsibility as an integral part of the organization's values. ...read more.


Many firms only begin using CSR practices after negative press surfaces. Coca-Cola in India created a CSR advisory board after negative press over fatal gas leaks and contaminated water. In other words, some companies only use CSR as a publicity tool to cover up problems that were apparent within an organization. In the same way that Coca-Cola used CSR to strengthen risk management, fast food restaurants are now offering "carb-conscious" alternatives to their otherwise unhealthy products. This gives the consumer the feeling that a fast food company does not only have unhealthy food items, but also offers a variety of tasty salads and health foods. Regardless of the motivation being for genuine concern or self-interests, the result is the same. There is going to be a more balanced partnership between the internal and external environment of the corporation. I believe that as the business world progresses, companies will be held to higher standards and the companies that rise to meet or exceed societal expectations will be the ones to have long lasting success. In addition, the concept of corporate social responsibility will be integrated into more visions and mission statements of the businesses that understand how important the community really is. (Moazzem) Ethan Opelt 10.21.04 Strategic Marketing Professor Lambert ...read more.

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