CORPORATE SOCIAL RESPONSIBILITIES
Originally, organizations all over the world concentrated on ways to improve profit and
company development. It was very clear what an organization was working towards because all
the practices were profit oriented. The main focus of the organizations was an advancement of
the primacy of the stakeholders. The introduction of corporate social responsibilities has
promoted profit maximization by utilizing means that can benefit the customers, employees, the
government and the society at large. Corporate social responsibility (CSR) can be defined as an
organization's economic, legal moral, environmental and social responsibilities. Corporate social
responsibilities are practices that are used to encourage growth in society and provide
development as well as do away with other practices that may affect the public. CSR can also be
a competitive advantage of an organization since organizations are expected to operate ethically
in society and the incorporation of corporate social responsibilities can be a drive towards ethical
practices (Petrenko, Aime, Ridge & Hill, 2015). This paper discusses corporate social
responsibility (CSR) as a management tool and the critically analyzed way in which CSR can be
used to strengthen the performance of organizations.
Corporate social responsibility enables organizations to take part in the development of
the country's economy while improving the quality of life of the employees and their families.
Corporate social responsibility has three principals which explain its functionality within
organizations; including sustainability, accountability, and transparency.
Sustainability is the measure of the impacts the practices have the future of the
organization and those around it. This principal concentrates of resource management especially
the non-renewable resources like coal. The usage of the resources by the organization is
measured in accordance with the rate at which they are produced (Petrenko, Aime, Ridge & Hill,
2015). CSR manages sustainability is a way that it encourages the faster generation of important
resources. In other words, the rate of generation of the resources should be higher than the rate at
which they are being consumed. The main focus of the principal is to reduce the production cost
of the resources since the depletion of the resources tends to increase the production cost because
of the urgency.
Accountability is the ability of an organization to identify with its effects on the
environment. This principle deals with the aspect of responsibility is such a way that the
organization recognizes how its actions affect the community and take part in the rectification of
the actions (Ling & Sultana, 2015). The organization takes full responsibility for its actions and
provides a plan that can compensate the affected parties as well as change the actions for the
better. Development of different measures and practices is essential because it ensures that the
negative effects are illuminated. This aspect defines an organization as a part of a wider societal
network which connects to several aspects and has control over the entire network rather than
just the owners of the organization. The aspect aims at understanding all the parties concerned,
defining the relevance of the information provided to the users and the accuracy of the measures
of the impacts.
The last principal of CSR is transparency which refers to the extent to which an
organization's report identifies and reveals the impacts of its actions. This principle focuses on
the ability of the organization to provide precise information on the reports and not disguise the
level of impacts of its actions. Transparency can be seen as a part of responsibility recognition of
the organization on the external impacts of the actions and the process of transferring the power
to the external stakeholders such as the customers and the community at large.
Corporate social responsibility has become prominent in the current world due to a lot of
factors; for instance, unfair treatment of employees, poor business behavior towards customers
and ignoring the surrounding environment and consequences of the actions of the organization
(Ling & Sultana, 2015). The main concern of organizations is the ethical policies ...