Question

1. Define corporate social responsibility (CSR). And explain its importance in running the organization.                                               (min 100 words – 3 marks)

Answer 1

Corporate Social Responsibility is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperative, while at the same time addressing the expectations of shareholders and stakeholders. Moreover CSR is an evolving business practice that incorporates sustainable development into a company's business model. It has a positive impact on social, economic and environmental factors.

Importance of CSR in running the organizations -

• Prevent financial ramifications: Compliance with the spirit and letter of the law — both nationally and internationally — through self-regulatory processes will prevent fines, put your business "low on regulators' radar screens," and lower legal expenses.
• Increase employee loyalty: Treating your employees fairly and generously is a part of corporate social responsibility. By providing good jobs and encouraging high professional and moral standards, you increase employee loyalty, and by procuring only those overseas products produced at factories where workers were treated ethically, you gain support among "Fair Trade" advocates.
• Maintain a positive reputation: Demonstrated consciousness in a variety of areas can garner publicity and give a business tangible proof of their conduct, which can be proudly displayed on a company website.
• Allowing clients to choose a charity that receives a portion of profits. Many customers appreciate their input being taken into account and are more likely to return when they feel personally connected to the beneficiary of a charitable campaign.