Needs and importance of corporate social responsibility
Needs and Importance of Corporate Social Responsibility:
The Importance of Social Responsibility• Solving Social Problems: -For example, is the protest against aerosol sprays.• Resource given by the organizations to solve the social problem.• -Organization should be, for example, give due consideration to the design of work organization and job satisfaction, make very reasonable effort to give security of employment, and provide employment opportunities for minority groups.
• Improves Public Image of the Firm: -Social initiatives taken by organizations tend to promote goodwill, public favour, corporate trust, profit. - E.g. Cigarettes• Improving Stock Price: -for example: giving recognition to the needs of developing countries; limiting the extent of political involvement or campaigning; donations to, or sponsorship of, the arts, educational or educational or research institutions, sporting organizations or charities.• Best Interest of Business to Promote and Improve the Communities:
• Assist to Government: - to solve social, economical and political problems of the country.• Pressure of Consumer Movement: - to protect consumers against business malpractices like adulteration, black marketing, unfair pricing, shortage in weight, measures, etc.• Pressure of Trade Union: - relations between management and labour.• Need of Social Audit.
• Attracts and retains staff:• Customers are attracted to socially responsible companies:• Corporate Social Responsibility attracts investors:• Corporate Social Responsibility helps to cut your business costs
• To share the negative consequences as a result of industrialization.• Helping to get talents.• Role in transfer of technology (TOT).• CSR is for human right corporate sustainability.
• For corporate sustainability goals.• Interdependency between a corporation and community.• A CSR program can be seen as an aid to alleviate poverty