CSR Advantages And Disadvantages In Business College Essay Help Service

Table of Contents Summary Introduction Corporate Social Responsibility and Sustainable Development The benefits of CSR Standards Negative Aspects of CSR Standards Critical Evaluation Implications Based on Practice Conclusion References

Overview

Corporate social responsibility is a chance for businesses to enhance their operations, encourage their employees, and attract new customers. It comprises of specific norms and regulations known as CSR standards that can be created by reputable international organizations such as the International Organization for Standardization or the United Nations. In this paper, CSR and its standards will be defined, followed by a review of their primary advantages and downsides. The implementation of ISO 2600 or UNGC may elicit a range of good and negative responses from employees of small and large businesses around the world.

Introduction

Today, businesses must adhere to a variety of standards, regulations, and laws and develop plans in order to provide services or products, remain competitive, and take advantage of available opportunities. Corporate social responsibility (CSR) is a vital aspect of any organization that generates debates and discussions on multiple levels. CSR remains, from a global viewpoint and despite the current uncertainty, a good investment topic for many companies.

According to Chernev and Blair (2015), corporate social responsibility is a tool that improves an organization's reputation and encourages customer cooperation. It is, on the one hand, a policy for integrating into the established business model. CSR is a sort of self-regulation that can be fostered either voluntarily or mandatorily. Despite business views towards CSR, firms continue to adhere to norms and requirements.

CSR is comprised of several standards that must be developed or have been established by specialized organizations. A CSR standard is a tool that is prearranged inside the framework for sustainable development and is characterized by such concepts as accountability, transparency, ethical behavior, and respect for stakeholder interest/the rule of law/international norms of behavior/human rights (Idowu, Dragu, Tiron-Tudor, & Farcas, 2016, p. 138).

It seeks to outline the principles and methods by which organizations must develop their conduct and recognize all environmental and social concerns. Nonetheless, it is vital to differentiate between regular codes of conduct that can be produced by the company that will employ them and standards provided by third parties and imposed on organizations in accordance with existing international laws.

There is no single classification method that can be used to organize CSR standards. For instance, Painter-Morland and Bos (as cited in McDonald, 2015) classify standards into three main categories: principle-based (human rights or environmental principles are used as guidelines), reporting-based (performance based on global issues), and certification-based (audits to determine a company's performance based on third-party certifications). This list is not exhaustive and may include process-based or outcome-based standards, depending on the tasks organizations wish to accomplish (Camilleri, 2015).

This essay will focus on two types of CSR standards, process-based (ISO 26000) and principle-based (the United Nations Global Compact), their advantages and limitations, and their practice-based consequences for different business organizations.

Corporate Social Responsibility and Sustainable Development

It should not matter what industry a firm is in if it decides to build a CSR strategy and utilize available chances. In one of the Forbes pieces, chief sustainability officer Dave Stangis concedes that for CSR programs to be successful, they must combine key business aims and the strategy such that it makes intuitive sense (Ludema & Johnson, 2018). Another essential method for sustainable development is maintaining relationships with communities and learning from their experiences (Ludema & Johnson, 2018).

The objective of CSR is to establish a climate in which businesses may display respect for and recognition of society's role in their success, as well as the opportunity to profit from the community's resources. The advantages of utilizing CSR in business include the strategic management of stakeholders, the identification of ethical and moral components, and the formation of obligations that can assist in regulating the actions and behaviors of persons and organizations (Bhinekawati, 2017). In the present corporate environment, organizations can choose CRS norms and criteria voluntarily, which eliminates the possibility of comparing the accomplishments of different companies within the same framework.

There is no precise explanation of what CSR is and why businesses must adhere to its guidelines. Numerous CEOs deem it essential to manage their work in accordance with CSR methods and to contribute to a beneficial societal influence. CSR becomes a competitive concept when businesses are able to engage in culturally competent discussions with current and potential clientele (Moodie, 2015). The likelihood of a significant increase in the number of CSR standards demonstrates the expansion of social concerns, human rights, and environmental issues that must be acknowledged by contemporary organizations.

The benefits of CSR Standards

Numerous contemporary corporate organizations concur that CSR standards have a favorable impact on their performance and growth. The ability to attract and retain people is one of the most prevalent instances of how CSR guidelines may benefit businesses (Murray, 2018). 75% of 1,000 individuals choose to work for companies with excellent CSR procedures, and 83% remain loyal to the chosen organization despite their goals to tackle social and environmental issues (Murray, 2018). People's rights, as well as environmental and social problems, are appropriately articulated within the framework of standards based on principles.

As a sort of CSR standards, principle-based standards emphasize rules that incorporate a variety of previously stated ideas and concepts to reflect current corporate responsibility concerns. The United Nations Global Compact (UNGC) is among the finest examples of CSR standards based on principles. It comprises of ten fundamental ideas that may be easily adopted into the goals and policies of businesses worldwide (UN Global Compact, 2018). There are four major classifications:

Human rights (according to which businesses must defend human rights and never exploit clients); Labour principles (according to which corporations should encourage freedoms and negotiating rights, eradicate all types of forced or child labor, and prohibit employment discrimination); Environment (which mandates that businesses discuss environmental concerns, encourage environmental responsibility, and deploy environmentally friendly technologies); Anti-corruption (according to which business companies should avoid any form of corruption, including bribery and blackmailing).

Process-based principles specify the actions businesses should be prepared to take when deciding to work in a particular environment. Establishing working relationships in society is one of the most important responsibilities of any organization, and a single error can result in unanticipated and unmanageable effects. In 2010, the International Organisation for Standardisation, generally known as ISO, creates guidelines for corporations to operate in a socially responsible manner.

In the same manner as the UNGC principles support human and labor rights, ISO 2600 establishes the requirements for contemporary businesses to recognize the value of accountability, transparency, consumer issues, international conventions, and stakeholder interests (International Organisation for Standardisation, 2010). If businesses wish to develop a positive reputation and work with a large number of individuals, they must adhere to the CSR principles defining ethical standards and respect for all business parties.

Additionally, performance in compliance with CSR standards is characterized by a variety of internal and external advantages. Comparing the performance of competitors affords businesses the opportunity to detect non-financial hazards and implement preventative measures, comprehend the relationship between financial and managerial issues, boost returns, and decrease expenses (Saeidi, Sofian, Saeidi, Saeidi, & Saaeidi, 2015). In addition, the external benefits include the supply of information that can play a significant part in final choices to stakeholders and the promotion of new marketing tactics to improve performance ("The value of corporate social responsibility," 2014).

Individuals that opt for ISO 2600 certification enjoy a strategic advantage and the opportunity to boost their competitiveness and promote a favorable image, with all the relevant rights and concepts recognized (Ajeti, 2016). CSR promotes planning and overcoming risks in organizational management, which is a significant benefit for modern businesses.

Using CRS standards, both process-based and principle-based, provides numerous personal benefits as well. Customers are able to place their trust in businesses and have confidence in the quality of services provided when employees are pleased with their working conditions. The research conducted by Vazeos (2018) demonstrates that more than fifty-five percent of consumers pick products from socially responsible firms.

Increased brand knowledge among employees boosts their motivation and sense of accomplishment, resulting in a 20% rise in firm profitability (Vazeos, 2018). Increased worker morale is a significant factor that contributes to the development of a company's image and the promotion of healthier communities (Arora, 2016). It is difficult for businesses to manage the changing environment or stop recruitment and target allocations; thus, CSR is an opportunity to rely on some guarantees and cultivate brand loyalty (Arora, 2016). CSR, in a nutshell, fosters loyalty, assurances, and stability among employees and clients and makes modern businesses competitive and financially viable.

Negative Aspects of CSR Standards

Despite the numerous positive features of CSR requirements, businesses must recognize that being socially responsible is not always advantageous. Organizations must exert significant effort to attain the desired outcomes and prioritize generating profits. Occasionally, individuals are unable to recognize the benefits of social responsibility and forget their direct duty as employees, but become active in CSR projects. Milton Friedman, a renowned economist, is one of the most ardent opponents of CSR norms, believing that social issues should never be the primary focus of businesses, but rather a part of how the market system operates (Carroll & Brown, 2018).

Therefore, the downside of CSR requirements is that they are imposed on businesses at the expense of their actual duties and responsibilities. Friedman permits the solution of social and environmental issues until they can be identified as community investments in financial activities (Calton, 2018). Nonetheless, it should not be a priority for those in the corporate world, but rather a supplemental objective to be attained. Companies must consider society, yet shareholders' needs and anticipated profits cannot be ignored.

Another disadvantage of CSR guidelines is that they are incompatible with all industries and businesses. For instance, the automobile sector necessitates the development of air-polluting vehicles. Volkswagen's reluctance to push pollution control or emphasis on environmentally friendly vehicles demonstrates that CSR requirements do not play a key part in becoming the world's leading automobile manufacturer (Dans, 2015).

Despite the fact that automobiles pollute the environment and degrade the quality of the air, many people continue to use various vehicles to save time, enjoy comfort, and keep up with the times. Companies in the tobacco sector either adhere to CSR norms or do not. People who are aware of the negative effects of cigarettes on human health and the environment smoke, use other tobacco products, and believe they can maintain their social responsibility if they do it in designated areas.

Lastly, the need to adhere to CSR guidelines results in additional costs and higher prices for services and products. Both principle-based and process-based standards necessitate unforeseen expenses and audits. Companies must hide their activities or even employ additional specialists in order to comply with standards and monitor organizational behaviors and managers' interests (Lin, Chang, & Dang, 2015). People can easily lose interest in performing their jobs well if the number of expenses incurred does not equal the number of advantages achieved. Companies may consider various ways to compensate their losses, such as reducing wages or increasing pricing, which could result in dissatisfied employees and customers searching for cheaper alternatives.

Critical Evaluation

The necessity of implementing CSR guidelines is related with both positive and negative elements for businesses and society. For instance, many businesses find it important to implement ISO 26000 or UNGC requirements. Compared to ISO 2600, where the authors devote particular attention to themes such as human rights, labour, environment, economics, consumers, and community development, the UNGC authors present little information about community and consumer issues (Gradert & Engel, 2015).

However, the removal of this description does not significantly reduce the number of users. Some businesses consider it customary to just discuss human rights, employment, and the environment, saving time for their own financial or organizational problems. Balcerowicz (as mentioned in Ksiak, 2016) concedes that regardless of the chosen standards, businesses must demonstrate that they are socially responsible and have the necessary social license to continue offering their products and services. In this instance, the benefit of ISO 26000 and UNGC standards for businesses is the acceptance of local communities to introduce new brand representations and to have clear contexts for service/product development.

Society can benefit from CSR norms and the enhancement of product and service quality. According to Mullerat (quoted in Ksiak, 2016), the decision to adhere to ISO 2600 or UNGC enables the elimination of flaws and the reduction of complaints. Any business, regardless of size, that has the opportunity to achieve specific enhancements and favorable outcomes must take use of it.

In turn, society is afforded the opportunity to study a model of well-organized services and ideas and may elect to adopt it in their daily lives. (Ksiak, 2016) A company's success is a community's success in terms of hiring more people, changing prices, and establishing favorable conditions. Free training and presentations, master classes for the population, and direct communication between a firm and a client encourage individuals to purchase a company's products or services with confidence in their quality and suitability.

In addition to Friedman, who typically criticizes CSR and its application by modern businesses, a number of other researchers exhibit a negative or, at the very least, circumspect approach regarding CSR guidelines created by ISO or the United Nations. Ksiak (2016) emphasizes the possibility of organizational hypocrisy. Today, it is simple to create the appearance of adhering to CSR guidelines by making a variety of emphatic remarks about the significance of environmental protection, human rights, and employment equity. However, even the most observant clients may be deceived and confused by the public relations campaigns and special discount events provided.

Implications Based on Practice

There are numerous applications of CSR guidelines in practice. The primary objective is to ensure that leaders and managers understand the fundamentals of human rights, environmental protection, and work circumstances and adhere to the rules created by renowned international organizations. It is possible to discover information about the Organisation for Economic Co-operation and Development, the International Organization for Standardization, and the United Nations, as well as their standards for various businesses and commercial activities (Gradert & Engel, 2015).

Then, it is anticipated to compare the desired outcomes of the selected standards and, eventually, to select a single source for a firm to rely on in order to become socially responsible.

× How can I help you?