The importance of corporate social responsibility

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The importance of corporate social responsibility

Jan Claes, General Manager of Coca-Cola Enterprises, Netherland B.V., has noted that the brand that people consider should also represent environmental and social and ethical aspects in addition to professional and responsible company with an outstanding reputation.

Every responsible company which upholds a social responsible manner look forward to realizing the motivation aspects of employees along with their work, environment and good financial results. They do not wait for government to frame laws or procedures to govern the social responsibility. The companies frame their vision and strategy to bring balance between people as social well being, planet as ecological balance and profit as economic prosperity.

Investors have started to think about the environmental, social and corporate governance risks within their portfolios while there have been stringent carbon emissions standards in the past. Thus, Corporate evaluate their business exercises right from the reduction of emissions and energy conservation to reasonable trade and labor standards. The focus has shifted on non-financial performance, the measurement of intangibles like customer satisfaction and employee morale. The interest in social responsibility involves a whole complex of developments which are mutually related to affecting the relationship between companies and their various stakeholders, such as investors, customers, vendors, suppliers, employees, communities and governments.

This led to emergence of Corporate Social Responsibility (CSR) to address these concerns. Companies with a reputable CSR gain benefit of their status and build up their demand as a smart employer by making their commitment part of their value intention for potential candidates. Employees also have a tendency to develop affirmative attitudes correlating with better performance when they view their organization's commitment to socially responsible behavior.

Though CSR is a voluntary concept, Companies should not separate it from business strategy and operations instead integrate the social and environmental concerns into their business strategy and operations.

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