CSR stands for corporate social responsibility. CSR is the process of identifying the organization’s impact on society and evaluating their responsibilities. It can be in the form of development works, public goods, consideration of the effects on the environmental and so on. Each business have their own process and they have certain impact on the society. So in order to offset the negativity, businesses involve in the CSR. But CSR is not a compulsion it is done voluntarily by the businesses. The idea of the CSR became universally known during the 1990s and it became associated with the business strategy. CSR was finally a strategic issue during the 2000’s (UONA,S. 2013) . So in order to be more successful businesses nowadays should be responsible towards the society than only earning or maximizing profit which in turn will benefit the business with reducing cost and attracting new workforce. The business operates in the society and should consider the stakeholder not only the shareholder. The business has equal responsibility towards the society and the environment. The money earned by the business is from the people so the excess money should be given back to the society. The business operating will have some sort of effect on the environment so it’s the responsibility of the business to make amends with it by being environmentally friendly like the use of the solar power, minimum wastage level, and proper waste disposal. Most companies have yet to truly integrate sustainability within their business models. This is a worrying situation given that our demand for water already exceeds supply and we expect a shortfall of around 40% by 2030 (BEGLEY, S. 2015). CSR also represents a fundamental shift in our collective understanding of the role of the business in the society. Business should include economic growth, social development and environmental consideration as an objective in their business plan. Business should make difference in the society and should provide a fair price to its suppliers and pay morally to its employees. For the society, the business should involve in the development of infrastructures and should provide employment to the local community. Business needs to follow the CSR because it helps to attract the new customers and retain the old ones. Customers have high demands from companies, but they understand they have an obligation to make a change, as well. It is found that 90% of the customers want business to consider environmental and social consequence. Furthermore, 88% customers said that they are likely to buy the product of a business which are socially responsible (SANTOLA, J. 2015). Consumers are more conscious nowadays and may even boycott the product of the business that is not socially responsible. In a recent study it was found that about 81% of the customers are likely to make personal sacrifice to address environmental and social issues and 90% of the customers are likely to trust the business that follows CSR (DAILEY, C. 2015). Customers are actively seeking a way to participate in the CSR and to make a change by selecting the business that strives for a social change. So, in order to thrive the business should consider CSR and should be responsible towards the society than only earning the profit. Similarly, consideration of the CSR will help to reduce the cost of the business and helps the business to be more competitive in the market. In a Harvard business paper, it was found that effective implementation of CSR will lead to lower capital constraints and will help to reduce the cost and increase the efficiency and productivity. Jane Stevensen, director of sustainability at Grant Thornton UK LLP, said: “Across the world, CSR and broader business objectives are becoming more common and the benefits of adopting more environmentally and socially sustainable business practices are economical and increases productivity”. The use of the renewal natural resources will be more cheaper and environmental friendly in comparison to coal or diesel. The use of such renewal resources may help the business to be self-sufficient. Though the implementation of CSR might incur extra cost but will have a higher return in the future. The use of the CSR can be used as a unique selling point in the market and help to attract new customer which may provide the upper hand in terms of competition in the market. The use of the CSR can also be used to increase the price of the product and the demand will be constant. For example, people pay higher price for the organic products rather than buying the cheap products.
I think that business has extra responsibility apart from earning the profit and should be ethically and environmentally friendly. CSR is not a compulsion but business should follow voluntarily to make a positive difference in the society. Though the adaptation of the CSR at the beginning might seem costly it increases the goodwill and provides free advertisement in the long run. It will help business to develop a good relationship with the customers, suppliers and the employees. It may even help to retain the customers and help to gain the new one. Nowadays there are a lot of pressure groups and environmental groups so they may lobby with the government in order to make new rules and regulation and make business adapt CSR. The implementation of the CSR will likely help to attract new and energetic workforce as well as help to reduce the cost of the operation in the long run. CSR can promote the respect for the business in the marketplace which might result in higher sales, high employee morale and increase the productivity. I think there should be proper guideline and law for the business to follow the CSR otherwise the use of the CSR will be used as a window dressing and for advertisement. The consumers should also be aware of such business and should boycott such business which don’t follow CSR. The business should make a positive impact in the society and should not strive just for profit.