Why is it important for companies to engage in Corporate Social Responsibility?

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Why is it important for companies to engage in Corporate Social Responsibility?

Question:- In your opinion, is it important for companies to engage in Corporate Social Responsibility (CSR)? Why? Please support your arguments with reference to a relevant theoretical framework and empirical evidence, such as academic findings and real-life example(s).

Answers- Corporate social responsibility is among the most essential aspects of the modern business world, wherein communities play a key role in forming the structure of the company. Corporations must fulfill their social responsibility and act as accountable members of the community since they are attempting to take different resources from community and maximise their level of interest, so they have an duty to honour in the type of CSR initiatives. They should strive to maximise their social duty and benefit.(Mauricio Andrés Latapí Agudelo, 2019)

CSR is important to engage to be allowed to operate business, many firms are obligated to engage in CSR because they are required to obey laws and approvals from authorities, societies, and other stakeholders.

According to empirical research, the following crucial factors must be met for CSR programmers to have a significant impact on consumer attitudes and purchase behaviour: The Company has a good reputation. The higher the business's reputation, the higher the firm's opinion of its CSR initiatives; a high-ranking corporation to problem fit; a personal connection to the CSR initiative's positive cause(MANAGEMENT, n.d.). Numerous initiatives, conferences, and groups forming in the public and private sectors demonstrate the relevance of corporate social responsibility (CSR) for businesses. CSR has an impact on the attribution process, and inferences have an impact on brand assessments.

Product and brand ratings have been found to be influenced by CSR associations.

I believe that fulfilling corporate social responsibility is important since its not only helps to achieve a good company's reputation, but it also ensures the corporation's long-term viability and helps to attract high price from the market since different people in society would have a favorable picture of a company. In terms of corporate social responsibility, a true or we say real life example may be observed in the case of Apple, that is attempting to engage in practises that provide optimal environmental protection as well as agreater labour force participation.They are continuously upgrading technology in order to draw fewer resources from environment while returning a greater quantity of advantages, and they have lately implemented wireless charging and other capabilities in order to eliminate all increasing environmental expenditures.(Ceil, 2018)

Next real life example is Starbucks which creates community stores in collaboration with local NGOs in order to have a positive effect on the people it works with and in. The NGOs with which these businesses collaborate provide services tailored to suit the needs of the localities in which they are located. Starbucks then gives the charitable partner $0.05 to $0.15 every transaction. A description of these local stores can be found here. Starbucks has vowed to bring in at least 10,000 vets and army personnel by 2018 and places a strong emphasis on workplace inclusion and diversity. Starbucks also offers training opportunity for indigenous students and has established the Starbucks Foundation, a 501(c)(3) with the mission of further strengthening those communities. These are all just a small handful of their numerous community-focused projects.(Faculty Board of Economic Sciences, n.d.)

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