Corporate social responsibility (CSR) is also known as responsible business, corporate conscience, or corporate citizenship that embodies valuable strategies for the welfare of a society in relation to corporate responsibilities. CSR is the part of a business model that governs the procedure of the self-regulatory policy of a company, and an organization’s business ensures CSR’s compliance with legal, social, and ethical values. Companies have learned from the devastating consequences of corporate social irresponsibility that has made them rational enough to act sensibly not only in the interest of a company but for a society as well.
The active implementation of CSR has significant effects on the prosperity of a company’s business that ultimately benefits its shareholders. Those organizations which prefer to do social welfare work are able to draw a great number of customers towards their products by establishing a good ethical impression that a society appreciates at large. According to McCoy (1989), ethics should be the central part of a business, and this recognition helps in enhancing the performance of a company. The effective CSR policy ensures the firm position of an organization in the market and has positive effects on the profitability of a business.
Many people deduce that the future of CSR is quite uncertain as it cannot be implemented effectively in contrast to the interest of shareholders who are not concerned with the non-profitable activities of a company. It is an unreasonable presumption as the policy of CSR is not only constantly penetrating into companies but also assuming a more sound and practical form than ever before due to its importance in today’s world. With the increasing implication of CSR, it can be safely concluded that its prospective growth will not be hampered in any way.
References
McCoy, C. S. (1989). Management of values: The ethical difference in corporate policy and performance. New York: Harper & Row.
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