Corporate social responsibility builds reputation & helps organizational growth

May 08, 2015The Editorial Staff

Corporate social responsibility is helping society and trying to have a positive impact on all social elements.

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Corporate Social Responsibility (CSR) refers to the business practice that prompts an organization to work in the best interest of the community and share some common benefits. A company with good CSR practices values its employees, customers, and all other stakeholders. This type of company understands its responsibilities to society, protects its wellbeing, and always tries to have a positive impact on the social elements and environment.

It is important for every organization to familiarize itself with its role as an integral part of society. After all, it’s a corporate social responsibility that influences the long-term sustainability of a business and helps build a reputation.

Starbucks corporate social responsibility practice

Starbucks is one such company that has an admiring contribution to the community. What is this company doing regarding corporate social responsibility? Starbucks in Canada helps the youth through its work placement program. The training program available in Toronto, Vancouver, and Calgary helps young people develop the skills, get training for jobs, and build a better future.

Also, Starbucks has developed excellent economic health recovery plans. It has established a Farmer Support Center that helps farmers learn how to reduce the cost of production, healthy farming, reduce the use of pests and other harmful fertilizers. It has also improved the quality of coffee and increase income by growing premium coffees. Obviously, the approach of corporate social responsibility is going to be different for other companies.

A company with good CSR practice values its employees, customers, the community and all other stakeholders.

What business leaders think about CSR

Top business leaders have different perspectives regarding corporate social responsibility. However, their sole intention relies on one thing—doing good for society.

Former President and CEO of Intel, Paul S. Otellini, once said “Corporate responsibility is about doing the right things right. Our approach has created value not only for our stakeholders and society but also for Intel. We have reduced costs through energy conservation investments, minimized risks by proactively working with our communities and supply chain, and enhanced our reputation as a leading corporate citizen by building trusted relationships around the world." [https://vinvolv.wordpress.com/2014/12/12/what-top-business-leaders-have-to-say-about-csr/].

Importance of corporate social responsibility

The well-being of the environment is crucial for businesses to consider, as it will largely affect society. An organization builds a good public image when it cares for its community and environment.

When a company does lots of good things for a community, it gets noticed by the people, the prospective customers, and wins their trust. Similarly, when an organization takes good care of the materials used in its products, it increases the likelihood that consumers will buy and try them.

Corporate social responsibility helps an organization keep its employees. One can cite Amazon.com as one of the best examples here. The company has recently announced an excellent employee development program. The Career Choice Program of the company will let its full-time employees pursue job training for four years at the company’s own expense, which will be $2,000 per year. No doubt this will also help in employee satisfaction within the organization.

Corporate social responsibility can also encourage innovation. Another example of this is the innovative hair conditioner product manufactured by Unilever that uses less water. Environmental sustainability remains one of the major objectives of corporations these days. Companies now set aside a huge portion of their earnings for social benefit projects.

Evidently, good CSR practice is also good PR. Social entrepreneurship is also a noble concept for serious entrepreneurs.

The Editorial Staff

The Editorial Staff at The Business Frontal is a team of writers dedicated to bringing seasoned news stories and how-to business articles to our readers and patrons to help maximize their entrepreneurial potentials.