Understanding a concept and applying it to the real world are two different things, that most of the people fail to do so. Likewise, business strategies that people usually make ned a strong determination to actualize. In today’s world, businesses need to keep changing their marketing strategies to survive. In the same manner, corporate social responsibility is an emerging business model that we’ll discuss today. So let’s start our lesson of the day.
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Now let’s have a look at the topics we’ll be covering in this lesson:
- What is Corporate Social Responsibility (CSR)?
- Why is CSR Important for Business?
- Four Types of Corporate Social Responsibility
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What is Corporate Social Responsibility (CSR)?
A business needs both systematic strategies and a better physical environment. Thus one must try to make this world a better place to live by business as both goals are correlated. It will benefit not only the organization but also people related to that company like consumers, employees, etc. Along with a healthy environment, a business also needs the strong back of its customers to sustain. Thus corporate social responsibility depends on the same idea.
In literal terms, CSR is a self-regulating business model that assists a company in building social accountability. It is like a tool that helps businesses gaining customers’ loyalty and attention. To know why different firms get involved in such social activities, you have to understand the importance of corporate social responsibility.
So let’s move to our next section.
Why is CSR Important for Businesses?
Nowadays, it is prevalent. All the organizations around the world are looking forward to practicing it. After reading this section, you’ll understand why. To see the details, read the following benefits that CSR is proving to businesses:
Potent Brand Tool
Corporate social responsibility is emerging as a potent brand tool. As its magnitude is far-reaching, it helps companies in financial gains and forming a robust public image.
Scope to Reach Potential Customers
Through CSR, it is easy to determine which customers are potent and reach them. So it assists companies in expanding their businesses through cold calling or relative business techniques. That is why CSR is outstanding as a simple method to build the business.
Cost-efficient
As CSR needs the involvement of both external and internal public, it is best for building public relations strategies. It never comes into light as a direct advertisement. But an advertisement with a social cause. Thus CSR activities are known for authenticity.
Increases Brand Loyalty
When customers exposed to the social benefits of the brand, then their loyalty towards the brans increases. This is the power of CSR that can turn the strongest competitors into partners.
Four Types of Corporate Social Responsibility
There is no shortage of remarkable ideas; what’s missing is the will to execute them.”- Seth Godin
Every business has its own ideology to pay back to society. CSR gives us a platform to accomplish our social strategies. That is why different companies engage in various types of corporate social responsibilities to meet their needs. So let’s see what these types of corporate social responsibilities are.
There are four types of CSR, as mentioned below:
Ethical Responsibility
As the name suggests, ethical responsibilities related to ethical principles. It involves the moral duties of a company towards its employees, customers, and other people related to it. There are different moral duties that a company has to perform while chasing success.
Philanthropic Responsibility
Sometimes a company has to come up as a healer of humankind or serving the underprivileged sections. For example, a company named TOMS is known for serving humanity since its inception. It donates a pair of shoes to the needy or disadvantaged section, for the sale of every pair.
Environmental Responsibility
Humankind is damaging the environment for so long. That is why many companies are initiating to work against it. Different companies are trying to turn the effects of global warming. Thus numerous companies are taking adequate steps to fulfill their environmental responsibilities. In this way, they are creating business strategies through the corporate social responsibility model.
For example, Google is the most creative company when it comes to CSR models. Being a storehouse of such large data, its data centers use 50% less energy than other companies in the world.
Economic Responsibility
It is the economic responsibility of big companies to support the overall economy of their country. Thus this type of corporate social responsibility binds a company to analyze its budgetary decisions.
Summing up our lesson of the day, these were some basics of CSR. If you need more business assignment help, contact Homework Joy anytime. We are 24*7 available to assist you in homework.