Importance of CSR in Cross Sector Cooperation

Question: Discuss about the Importance of CSR in Cross Sector Cooperation. Answer: Introduction: The modern approach to business management has significantly evolved. Previously, organizations focused their energy toward product production and profit maximization. However, this approach does not fit the present business environment. The ever rising concerns of the implications of corporations existence to the society have shifted approaches in management. The current generation does not only rank successful organizations on profit terms but also on how they influence the lives of the surrounding communities. This is what introduced the approach of corporate social responsibility (CRS). Discrepancies exist on the definition of this concept. According to Zu (2008, pp.18), many people are still confused by the many definitions suggested by scholars and non-scholars. This is because CRS, have been manipulated by company heads to fit their perception. So, what is a corporate social responsibility? According to Sims (2003, pp.43), CRS, refer to business activities that requires a cont inuous obligation by the firm to behave ethically and contribute to economic development while improving the lives of its labor force, and their families, community, and the overall society. Therefore, it is a concept that demands a multidimensional approach to management. Furthermore, it presents a dilemma for the administration of organizations, since the corporations must decide whether to survive or thrive (Sims, 2003). Ths is because they must serve the organizations set goal and objectives while satisfying the needs of the society. The importance of CRS to both the society and business cannot be underestimated. CRS have many benefits to the business environment. One of the fundamental importance of CRS is the enhancement of cooperation between the society, business and other sectors (Carnogursky et al., 2015). This is crucial for both the short term and long term benefits to the company. Cooperation is a sign of business activities acceptability within its environs of operation. It makes the survival of an investment to easier since others support them. Since CRS, advocates for the organization to address the welfare of the society, it plays a vital role in changing the customers attitude (Kavaliauske Stancikas, 2014). Customers will be attracted to acquire goods and services from corporations which positively contribute to the society. However, it does not guarantee automatic preference by the client, because the current market is globalized, and consumers purchase products using different portals. Some make online purchases, hence will not be interested in the CRS actions of the company. It is vital to remember that, CSR is not a mandatory activity for organizations. Hence it is an organization's initiative to give back to the society. Despite, the customer being more concerned about the quality of service and products, Kavaliauske Stancikas (2014) notes that the clients appreciate socially or environmentally beneficial efforts by organizations. However, for companies which are locally based and serve local people, CRS actions a re essential. For instance, a local company involved in sugar product must devise ways of controlling the level of pollution in the environment. Failure to do so can spark resistance from the local community. Therefore, initiating CSR actions which will cater for the well-being of the locals will change their attitudes towards the company. According to the CRS definition outlined by Sims (2003), CSR should address the welfare of a companys employees and their families. Employees are a vital component in any organization. They are the one who actualize the organization's goals and objectives. Furthermore, they work towards the attainment of the organization's strategic plans. So, in collective terms, the workers are the heartbeats of organizations. Therefore, catering for their interests boots their engagement. Employees enjoy working for organizations who have a positive social image. This makes the company be a darling of many potential employees. This is essential to the survival and performance of an investment. Happy and satisfied employees are innovative, committed and hard working. This subsequently improves the companys performance. Therefore, the corporate social responsibility initiatives are very crucial in the modern business world. So, what are the advantage of this approach? It is vital to note that both commercial and non- profitable organization engages in CRS. Hence, it should not be considered as a way of attracting profits. Improved collaboration between the company, society and other sectors make it easy to market and organization. The media plays an essential role in marketing. Therefore, when a corporation engages in CRS action, it attracts media attention which will then advertise the companys activities to the people. This is a very efficient way of marketing an organization. Through CSR activities, people will come to know more about investment activities, their goods, and services. CRS makes it easier for organizations to obtain financial support. There are well wishes which are ready to support activities which can save the environment or uplift the livelihood of communities. This is crucial for non-profitable associations who depend on donor funds and volunteers to carry out the services. Donors will be willing to assist programs which are addressing perennial societal problems. Hence it is advisable when an organization is setting up a CSR project to carry out serious research on areas of high need. The current market environment is very complex, and agencies find it to survive on the own. Therefore, they thrive on partnerships with others. CSR makes the process of striking corporate partnership to be easy. This is because companies looking for partners are likely to favor those with the positive public image. Additionally, improved performance in production and market competition are other advantages that CSR can bring. Improved performance is caused by workers satisfaction while market competition is due to the change in customers perception of a company. Clients will prefer socially responsible institutions. For the employees, corporations with positive societal image attract quality and competent labor force. There are also shortcomings associated with CSR. Many people still view CSR as charitable giving. According to Hopkins (2012), this view is misguiding and should not be used to define CSR. However, CSR can have an adverse implication on the profitability of business. The main reason for setting up a business is to generate profits. When companies engage in CSR actions which are not financially profitable, it can be viewed as financial wastage. Many factors are causing poor states in the society, and one organization cannot change the situation alone. Furthermore, it is not guaranteed that the companies involvement can positively influence the situation (Hopkins, 2012). Therefore, it can be termed as wastages of resources. Furthermore, it triggers conflicts between the company heads and the stakeholders. The company management can support the idea of CSR, but the stakeholders can be against it, resulting in rifts. Conclusively, CSR is a very powerful tool in ensuring the long-term survival of an organization. This is because it makes the companies be accepted in the society. Furthermore, it fosters corporate partnership which is the modern mode of market survival. However, significant consideration and research ought to be done before engaging in any SRS actions to eliminate chances of financial losses. Reference List Carnogursky, K., Diacicova, A., Dancova, A. Lach, M., 2015. Practical Importance of CSR in Cross-sector Cooperation.. Procedia Economics Finance, Volume 34, pp. 244-251. Hopkins, M., 2012. Corporate Social Responsibility and International Development: Is Business the Solution? London: Earthscan. Kavaliauske, M. Stancikas, A., 2014. The Importance of Corporate Social Responsibility in Lithuania's Finance and Telecommunication Industries. Procedia - Social and Behavioral Sciences, Volume 110, pp. 796-804. Sims, R. R., 2003. Ethics and Corporate Social Responsibility: Why Giants Fall. Westport: Greenwood Publishing Group. Zu, L., 2008. Corporate Social Responsibility, Corporate Restructuring and Firm's Performance: Empirical Evidence from Chinese Enterprises. Berlin: Springer Science Business Media.