Question

Question 2
Corporate social responsibility (CSR) as actions of an organization that are targeted towards
the achievement of a social benefit over and above maximizing profits for its shareholders
and meeting all its legal obligations. Deciding how to communicate CSR can be difficult.

(a) Discuss FOUR (4) the driving forces behind corporate social responsibility (CSR).

(b) Describe TWO (2) types of corporate social responsibility (CSR). Provide ONE (1)
example for each types of CSR.

Answer 1

a) The fundamental driving forces behind Corporate Social Responsibility of any organization are as follows:

• Sustainability: Every company is striving hard for making its business sustainable. The CSR activities and interventions of the organization will facilitate the long term sustainability quotient of the business.
• Knowledge and Awareness: The overall knowledge and awareness level of both consumers and employees is enhancing. The employers are also becoming aware about the importance of giving back to the society. Hence they are getting inclined to CSR interventions.
• Globalization: Globalization has enhanced the overall visibility as well as viability of business. The companies are having coverage across the globe. The wealth creation rate of the companies has also increased. In such a scenario, companies feel responsible for the society and environment and hence get aligned with CSR.
• Consumer Expectations and Brand value: With the advent of technology, consumers have become more aware. Also the transparency in business processes has enhanced. In such a scenario, consumers value companies who are socially responsive. Customers like to be associated with such moral companies. Hence the companies are getting attracted to CSR interventions to increase their brand value.

b) The 2 primary types of Corporate Social Responsibility (CSR), are as follows:

• Philanthropic responsibility: The focus of this CSR is doing good to overall society and humanity. The companies come up with ways in which the development and upliftment of overall society can be facilitated. There are donations and efforts put to facilitate the same. The organizations come up with interventions for facilitating the education of girl child, orphans or to support the employment of the disabled. These are some of the activities conducted under philanthropic responsibility of CSR. Microsoft has Bill and Melinda Gates Foundation to support its philanthropic interventions.
• Environmental responsibility: The companies are become aware as well as conscious about the damages done to the environment by their business. The carbon footprint of supply chain of various global companies can be quite detrimental for the ecological balance of the environment. Hence the companies are coming up with interventions to retain the ecological balance and to mend the damages done to the environment. Such interventions can be about planting more trees as well as processing the organization’s waste before discharging in the environment. Companies like Zappos and Tesla Motors are striving hard to reduce their carbon footprint to a minimum.

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