CSR in contemporary business management (Market drivers (Avoiding fines,…
CSR in contemporary business management
Companies today use CSR as a marketing or public-relations tool, because the founder of the organisation believed in philanthropic giving or a combination of reasons
Companies engage in CSR because society expects it of them
Some consumers prefer socially responsible products and services and employees choose to work for companies that are socially responsible.
Civil society groups and other groups have worked with companies and governments to develop voluntary standards or guidelines as to how socially responsible corporations should act.
It is desirable for an organisation to be thought of as socially responsible.
Include legislation about companies, labour relations & environmental management
Many governments also encourage business involvement in social issues through CSR.
Most governments enforce local and national legal systems with which companies have to comply in order to operate in that country
Legislation encourages corporate behaviour that is socially and environmentally responsible, as well as ethical reporting
In CSR, compliance stretches beyond the law.
Avoiding legal costs
Companies can reduce cost through CSR by:
Using energy efficiently
CSR can result in reduced costs or increased revenues
Using alternative raw materials sources
Reducing recruitment costs
Increasing staff retention
Reducing the cost of capital
Responsibility can be seen as an ethical value
Enterprises have a social responsibility as well as a legal and economic responsibility.
Business ethics is a subset of ethics that focus on deciding between right and wrong in the workplace and in business generally.
The ethical responsibility of a business does not only apply to external damage. It also applies to responsible business dealings and conduct in the workplace