SOCIAL RESPONSIBILITY

Corporate Social Responsibility

Corporate Social Responsibility

Introduction

Corporate social responsibility is a concept in which the firms amalgamate its social, economic, environmental, and economic activities. In the corporate social responsibility, the firms interact with their stakeholder on a voluntary basis. In CSR, the companies involve in different activities for solving the social problems existed in the local environment. It has become an integral part of every organization. More the companies involved in the corporate social activities the more it get benefits either in monetary or non monetary terms. CSR activities do not mean that the firms are doing charitable work. It means the firms are contributing its part towards the betterment of the environment, and they are getting something in return. The essay encompasses the importance of CSR activities for an organization, particularly in the market of UAE.

Discussion

Companies should not only focus on their products, but also focus on the distribution channel of its products. Now the role of the business is not to maximize the profits, its objective is to retain and give value to customers. Companies should estimate the return on their investments and develop metrics; they should develop the high technology marketing. The companies should create the long term assets and for doing that the companies have to follow the 6 key factors. These key factors are following: Being honest the brand, honest with the customers, provide quality service, maintain strong relations with shareholders, utilize the intellectual capital efficiently, and create a corporate reputation. The tenth principle is to scrutinize the marketing process of the company as a whole.

CSR activities help in promoting the company's image by doing activities which contributes towards the environmental development. By following CSR activities, a company develops and deepens its link with its stakeholders, employees, customers, suppliers, and neighborhood. It provides a medium to improve the overall living conditions of society. CSR can influence the competitiveness of the businesses in the following ways: Improves products and production processes, increases customer satisfaction and loyalty. It helps in increasing motivation and employee loyalty, increases business creativity and innovation. It helps in creating the positive image of the company among customers. It creates appropriate position in the labor market, makes better relationship with business partners, and gives access towards public aid through positive corporate image. It saves the cost and increases the profitability, and increases the turnover of the business. The CSR practices are widely used by many companies in Unites States and it is a growing phenomenon even in UAE market these days as more and more foreign companies are establishing their settings in the Middle East. Community involvement is regarded as a significant and a key element in the CSR. Company acts like a responsible citizens and does different community development projects for the local community welfare. For obtaining the corporate sustainability in the form of Corporate Social responsibility, then the companies have to understand the term sustainability (Murray, 2006, pp.16-18)

Corporate Social Responsibility, has become imperative not for the large organizations but for the small and medium enterprises. The development of CSR activities must be done voluntary. These activities should be based on the idea that the ...