Is Corporate Social Responsibility a necessity?

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Is Corporate Social Responsibility a necessity?

All of us share a personal responsibility to each other around the world. People are affected by what each other do. The same can be seen in businesses too: large and small, public or private impact many stakeholders. In an act of failing to see an uncertain future, Corporate Social Responsibility is now a necessity rather than a choice for all businesses.

The International Business Report on Privately Held Businesses results the recruitment / retention of staff which accrue to 65% and contributes as main factor responsible for corporate responsibility leaving behind cost management with 63% reflecting the recognition that controlling costs is good for business and the public attitudes / building brand with 56% establishing loyalty among customers. The other factors are tax relief, saving the planet, investor relations and government pressure.

These factors determine the business's well managed corporate responsibility sustaining business objectives among big corporations where enhanced fulfillment, reputation and associations have been shown to increase shareholder value and profitability. The privately held businesses are pressurized to act from the supply chain demands with corporations ensuring conformity to ethical business practices. Integrating corporate responsibility into a business's strategies augments its magnetism of an employer.

The increasing environmental and social distress attempts businesses to use Corporate Social Responsibility as a way to anticipate regulatory action. Companies also increasingly perform Corporate Social Responsibility activities to draw consumers' compliance to pay for products or services and investors' valuation of individual stocks. These activities also serve as investments on long-term perspectives and plans.

The power role derived by the corporations is counter balanced by the importance of corporate social responsibility movement. together with controlling corporate power excesses, social changes like an increased perception of stakeholder rights and protecting and preserving the natural environment for future generations, have positively enhanced the use of corporate social responsibility.

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