The Pros and Cons of Social Responsibility

The Pros and Cons of Social Responsibility

Corporate Social Responsibility (CSR)

According to Champoux (2010), organizations are using different approaches to create competitiveness, including the implementation of corporate social responsibility. Zahid et al. (2021) define corporate social responsibility as the policies and practices undertaken by organizations to impact the community positively. Standard corporate social responsibility practices are engaging in charity work, reducing carbon footprint, investing in environmentally conscious business practices such as using renewable raw materials, and volunteering. In my opinion, corporate social responsibility can be a competitive advantage. Research conducted by Marakova et al. (2021) indicated that corporate social responsibility improves an organization’s reputation and image, thus enhancing customer satisfaction which is one of the sources of competitive advantage. Corporate social responsibility also creates a competitive advantage by improving an organization’s ability to enhance its uniqueness and meet customers’ and community’s needs. Corporate social responsibility also helps organizations differentiate themselves from competitors, thus creating a competitive advantage (Fifka & Loza Adaui, 2015). For instance, an organization that practices corporate social responsibility by conserving the environment through the use of renewable raw materials can attract customers who are keen on protecting the environment.

Moreover, corporate social responsibility also increases brand awareness, thus creating a competitive advantage by attracting many customers (Gupta, 2013). For instance, companies with unique corporate social responsibility practices, such as giving sponsorships to needy students in the community, are widely known even beyond their area of operation, increasing their customer base in different regions. Customers are also likely to remain loyal to a company or brand that practices corporate social responsibility. For instance, brands and organizations that engage in charity work receive support from customers. The customers purchase products because they know that some of the money generated from the sales will be used for a good cause to either help the needy or support children in disadvantaged neighbourhoods.

References

Champoux, J. E. (2010). Organizational behavior: Integrating individuals, groups, and organizations. Routledge.

Fifka, M., & Loza Adaui, C. R. (2015). Corporate social responsibility (CSR) reporting—Administrative burden or competitive advantage? New Perspectives on Corporate Social Responsibility, 285-300. https://doi.org/10.1007/978-3-658-06794-6_15

Gupta, A. D. (2013). Competitive advantage. Encyclopedia of Corporate Social Responsibility, 426-428. https://doi.org/10.1007/978-3-642-28036-8_6

Marakova, V., Wolak-Tuzimek, A., & Tuckova, Z. (2021). Corporate social responsibility as a source of competitive advantage in large enterprises. Journal of Competitiveness, 13(1), 113-128. https://doi.org/10.7441/joc.2021.01.07

Zahid, M., Naeem, H., Aftab, I., & Mughal, S. A. (2021). From corporate social responsibility activities to financial performance: Role of innovation and competitive advantage. Asia Pacific Journal of Innovation and Entrepreneurship, ahead-of-print(ahead-of-print). https://doi.org/10.1108/apjie-04-2020-0046

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The Pros and Cons of Social ResponsibilityUnit 2.2 Discussion: The Pros and Cons of Social Responsibility
Some believe that embracing corporate social responsibility (CSR) can be a competitive advantage;

The Pros and Cons of Social Responsibility

others believe that doing so is inconsistent with the role of business and wastes essential business resources. What do you think and why? Research and cite sources that support your position.