Should a company be responsible for more than just making money? Does companies have a social responsibility? More and more people answer yes on those questions. The concept of Corporate Social Responsibility (CSR) is becoming established around the world.
Especially since the problem of global warming started getting more and more attention, environmental protection issues have become the focus of discussion regarding corporate social responsibility.
“Coexistence” is the key point. No company lives in a vacuum. Consider a large bicycle manufacturer. As a multinational enterprise, it has operations all over the world. The influence of huge organizations on society cannot be underestimated. Therefore, they pay special attention to the concept of connection and community, whether it is consumers, suppliers, or even peers.
CSR can improve the image of corporation
Many companies still do not believe in CSR. They believe that the main consideration of business operations is to make a profit and if these profits are used for other purposes than building more profit or giving back to shareholders, something is wrong. However, far and wide, corporate social responsibility has become a necessary consideration for business managers. Some business owners have begun to count backwards and re-consider any CSR costs as marketing costs, since the process of giving back to the community also creates a positive corporate image.
Corporate social responsibility is not just about spending
According to a survey conducted by the Economist Intelligence Unit (EIU), when a company fulfills its responsibility as a social citizen, the effects of the actions performed are usually invisible and indirect. But there are also many results that are obvious and concrete, especially when the policies adopted are related to environmental protection. For example, after implementing the environmental protection policy for reducing packaging materials, the company can also reduce resource waste, save packaging costs, and improve energy efficiency. IKEA has done a good job in this regard, they are proud to use their flat-packed design as one of the highlights of their promotions, because the effect of these well-designed flat packaging not only makes consumers easy to shop, they also reduce storage space, increase the number of goods shipped, and reduce the environmental damage caused by transportation.
Effective implementation of CSR can enhance competitive advantage
In addition, 75% of the respondents to EIU’s surveys believe that an effective CSR policy can generate positive benefits for the company and improve the company’s financial position. The survey also show that although more and more companies practice CSR most companies are still passive in the performance of these responsibilities. If the policy can be properly planned and implemented effectively, it will be able to enhance the company’s competitive advantage.
