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Corporate Social Responsibility
Abbatematteo, Diane
Bellevue University, SUST 420
Assignment # 2.2
May 26, 2024
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Corporate Social Responsibility
Humans are kind at heart. We look for goodness in others and want to live in a
peaceful, safe world, and we need to leave the world a better place for future
generations. With these wants, society has expectations of businesses, too. We expect
businesses to act fairly, treat their employees well, obey laws, help their communities,
minimize pollution, and keep our lands clean and viable. Stemming from years of
societal expectations on business, the corporate social responsibility model began. The
CSR business model centers on economic, ethical, law-abiding, and philanthropic
responsibility. With CSR, there is a balance between production and profit while
focusing on citizens' and environmental wellbeing.
Following a corporate social responsibility model can reap many rewards for a
Business and society. CSR can bring company brand recognition (Webber & Webber,
2024, para 13). One may choose the CSR company's product over a non-CSR because
of its commitment to the wellbeing of its community. Consumers may be more loyal to a
company that gives back to society and follows like values (Making an impact:
The benefits of Corporate Social Responsibility (CSR), 2024, para 19). Consumers trust
companies that are philanthropic and giving, as they do not seem to be producing only
for a profit (Webber & Webber, 2024, para 15). Along the lines of relationship building,
Stuart Goldstein, Team Building Saves the World Podcast stated, "More than 50% of
consumers are willing to pay more for a product or service if the business prioritizes
sustainability. These are all things that companies need to think about if they want to
be successful in the future." (Webber & Webber, 2024, 31).
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There are also positives pertaining to a business's workforce when modeling
CSR. Corporate social responsibility within business brings employee retention and
motivation (Webber & Webber, 2024, para 19). A study by "Porter Novelli came to find
out that "95% of employees who work for purpose-driven companies report that they
are more loyal to their employer" (Webber & Webber, 2024,19). Studies have shown
that employees engage more when they are aware that the work is making a difference
for society (Webber & Webber, 2024, para 21). A CSR contributor will attract top talent
(Making an impact: The benefits of Corporate Social Responsibility (CSR), 2024, para
27). With the current interests of over 60% of GenY and Millennial adults that give to
charities there are also over 40% that volunteer, so it is not surprising that these adults
are looking to work for companies following a CSR model in business, too (Making an
impact: The benefits of Corporate Social Responsibility (CSR), 2024, para 28). If this
was not incentive enough, CSR is known to bring more revenue to a company (Making
an impact: The benefits of Corporate Social Responsibility (CSR), 2024, para
27). The Making an impact: The benefits of Corporate Social
Responsibility (CSR) document notes that CSR companies have 20% more revenue
than companies that do not give back (Making an impact: The benefits of Corporate
Social Responsibility (CSR), 2024, para 32).
As with the many positives corporate social responsibility model brings to a
company, there are a few disadvantages. CSR could lead to higher costs and expenses
(Kishore, K., 2021, para 5). Additional staff, promotional funds, and budgeting come with
considerable company and CSR costs (Kishore, K., 2021, para 5). There may be a
need for disclosure to prove a company's CSR is being followed and shareholders may
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May 26, 2024
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feel a weighted responsibility for the companies to accommodate to its initiatives
(Kishore, K., 2021, para 6). Even though there is positivity in a company modeling CSR,
people may dissect the efforts and criticize trivial things that would bring a negative
public image (Kishore, K., 2021, para 7). CSR could increase the need for accountability
if its goals are not aligned with its product or services (Kishore, K., 2021, para 8).
Unfortunately, some businesses can lose sight of what the CSR was initially striving for
(Kishore, K., 2021, para 9). A business needs to avoid charitable efforts that are not in
line with the CSR goals, to not have a CSR to gain marketing benefits, and to reach for
sustainable milestones even before there is a need for legalization requirements in
place (Making an impact: The benefits of Corporate Social Responsibility (CSR), 2024,
para 43-45).
A major global economic crisis is currently happening, and it is climate change.
2023 brought the hottest global temperatures, droughts, flooding, and wildfires (Gill, I., &
Kose, M. A., 2024, sec 5). There are also more natural disasters worldwide (Gill, I., &
Kose, M. A., 2024, sec 5). The climate crisis brings more poverty, lower farm outputs,
and hasten economic growth (Gill, I., & Kose, M.A., 2024, sec 5). The global "cost of
damage to infrastructure, property, agriculture, and human health will be between $1.7
trillion and $3.1 trillion by the year 2050” (Climate Change Is Costing the World $16
Million per Hour: Study, 2023, para 1)! If countries encourage the use of corporate
social responsibility, there could start a movement to not only slow down climate change
but offset the horrendous costs economically. CSR could fuel our businesses and
countries to bring sustainability as a necessity for now and future generations. I would
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venture to assume that taking pre-emptive action might lower the climate change
disasters costs by lowering the occasions of natural disasters in our future.
CSR has evolved through the years, and we can make an impact to better our
world now. Society's impact on CSR is relevant to making the changes needed to
business. We have citizens, businesses, and governments invested; CSR is a means to
ensure the sustainable future of our world.
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References
Climate change is costing the world $16 million per hour: study. (2023, November 2). World
Economic Forum. https://www.weforum.org/agenda/2023/10/climate-loss-and-damagecost-16-million-perhour/#:~:text=Follow-,The%20global%20cost%20of%20climate%20change%20damage
%20is%20estimated%20to,climate%20change%20become%20more%20severe.
Gill, I., & Kose, M. A. (2024, January 17). 5 major risks confronting the global economy in
2024. Brookings. https://www.brookings.edu/articles/5-risks-global-economy-2024/
Kishore, K. (2021, May 13). Disadvantages of social responsibility. Harappa.
https://harappa.education/harappa-diaries/disadvantages-of-social-responsibility/
Making an impact: The benefits of Corporate Social Responsibility (CSR). (n.d.).
https://www.cooleaf.com/guides/making-an-impact-the-benefits-of-corporate-socialresponsibility-csr
Webber, A., & Webber, A. (2024, April 22). 10 Business Benefits of Corporate Social
Responsibility (CSR). TeamBonding. https://www.teambonding.com/10-businessbenefits-of-corporate-social-responsibility/
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