Ethical Company & CSR
Ethical company is committed to environmental and social causes, handles gender equality, and it is free of addictions, anti-harassment, discrimination and violence in all its forms in and out of their facilities. Every organization should be aware that their activity has implications for the community in which it operates.Environments where businesses are located, may suffer both negative externalities such as landscape impact, fluctuations in the value of land and positive such as improvements in roads, increase in disposable income.
According to Philip Kotler socially responsible company is aware of its ability to impact on the environment and establishing channels of dialogue and cooperation with it, try to identify these impacts and implement mechanisms to minimize or compensate for the negative and enhance the positive.This commitment to their close social environment creates strong links between the company and the community of which it forms part, which will impact positively on the organization therefore the identification and commitment of the members of that community as the company incorporates by workers as Special attention will be expected provide administrations representing it.
Companies have an ethical obligation to identify both positive and negative impacts and the necessary measures are taken to enhance those and minimize the latter.In the overall context of corporate actions, under the identification of the development dimensions of CSR, companies must base their action on the commitment to maintain the coherence of their actions both internally and externally, providing both transparency and certainty in their relationships (Kotler, 2011).
Positive impacts of CSR on firm value 企业社会责任对企业价值的正面影响
Not all companies are doing CSR practices in an explicit way. There are some that are practical and are making progress, because of the pressure to advance in the course of business. However, for companies to completely harness the potential of CSR it must implement the practices into the strategic plans of the company, i.e. design various activities that can be performed in conjunction with its partners, some in conjunction with agencies or societies in order to make a positive impact due to the presence of the company in nearby communities (Hopkins, 2012).
Corporate social responsibility goes beyond what is stipulated of the firm to undertake internally. The external dimension should break what is known as Philanthropy, which consists of being a donor (Schwartz, 2011). The ultimate goal of the company must be to get a little closer to the community, consider its needs in order to formulate and implement programs for local development and above all to make it sustainable over time through funding mechanisms according to the activities (Hawkins, 2013).
Companies make profits by being socially responsible. Firstly when a company has a rapprochement with its workers it will know the values, mission and vision the company has, they can feel part of the same; this can create a good working environment. Being in a good working environment and ensuring everything is safe, allowing workers to have a balance between work and family obligations encourages more productivity. In this regards companies must also ensure that there is gender equity so that there are no restrictions on the advancement of women within the company (Crowther, 2011). All this makes employees feel part of the company and focus even more on their work, in order give the company a competitive advantage. Moreover from the environmental angle the company must be friendly in the use of new technologies. For example, you can replace the energy expenditure, the inputs used in production, leading the company to have reductions in production costs and be more competitive.
CSR is an opportunity to improve business profits and it is essential to building a more just and efficient society. Numerous studies have shown that companies that implement CSR policies increase their productivity, which directly and positively impacts their bottom line (Mallin, 2012).
Increased ability to recruit and retain talent 增加招聘和留住人才的能力
Workers are motivated by practices that are socially responsible and clearly defined. They like to join organizations that respect the individual and invest in their learning ability. Responsibility attracts talent for social enterprise and at the same time makes workers feel encouraged to stay in employment.
Greater consumer loyalty 更多的消费者忠诚度
Consumers admire companies that value their employees, develop social projects, care about the environment and invest in efforts against corruption. Therefore, social responsibility plays a crucial role in ensuring the loyalty factor consumer. Social responsibility practices add value to company's business, which can make use of this potential differentiator. An example to illustrate these concepts is the research from Harvard performed for consumer perception around social responsibility shows that consumer are concerned about aspects such as ethics and the employees and are willing to reward companies that adopt socially responsible behavior.
Sustainability of long-term business
The sustainability of the company is also a matter of concern for investors.
Achieving social transformation 实现社会转型
Today, the global economy has made social actions become a strategic business tool. The rationale of the companies should not focus on meeting the needs of underserved sectors; however, it needs to conceive the idea of â€‹â€‹generating social and economic value. Corporate social responsibility is nothing new. However, in recent years it has become even more popular as both entrepreneurs and managers are now more aware and sensitive to the true extent of social problems (Banerjee, 2013). The trend today is to align and integrate initiatives with social entrepreneurship, and social responsibility that strengthens business and consumer loyalty to a specific brand. Professor of Harvard Business School, James Austin, said that "the growing importance of the social dimension of the company is one of the recent changes with the greatest impact. Social initiatives cannot be isolated actions it should go hand in hand with the mission, vision, values â€‹â€‹and strategy of the company. Indeed there is business success is in knowing how to keep a balance and consistency across all these tasks (Paetzold, 2013). When employers align their business with social activities it improves the company image in a positive way.
Companies should develop new business strategy where the inclusion of this sector is undertaken in a fair and transparent manner. The challenge is to break through the gaps, changing organizational culture and including new ideas. Many entrepreneurs do not know the low-income population; the idea is to establish partnerships with the community and incorporate it into the work force and to design new methods of market research. It is necessary to enhance the business by incorporating social entrepreneurs and community organizations. A study by Harvard University found that those "companies that balance the needs of shareholders, employees, customers, suppliers and the community in general, showed four times the growth compared with that focus solely on the shareholders." This means that the world is dealing with a new business model: companies that are aware of and committed to the social environment that surrounds them, but at the same feel the need for these actions go hand in hand with economic performance.
Corporate Social Responsibility is one of the challenges that companies will face in the coming years. The growing awareness of society, consumers, customers, governments, etc, and economic development based on the generation of wealth, respect for the environment and the positive influence in society that increasingly encourages organizations must take into account sustainability criteria when making strategic decisions (Hopkins, 2012).
Not so long ago, the great goal of business is to maximize profits, the worker sought to fill a position and enjoy his salary, the supplier deliver goods and collect the invoice and in the meantime, the customer bought the product in a time point. However, one need only look around to realize that this has changed. The company wants to fill a larger space in society, and in general, in the lives of people it is associated with (Schwartz, 2011). The worker seeks to go beyond and is immersed in careers and craves prestige, the provider works for a close relationship with the company and the customer prefers to interact with companies that inspire confidence. Social commitment is structured around three major initiatives aligned with vision to create jobs, responsible citizenship and an eco-consciousness that enables sustainable development in the countries in which businesses operate. This is the result of a greater collective consciousness: the company and the individual have reached a level of maturity that has made it think about the impact of its work and the contribution of its performance. In short, businesses are not easily satisfied and want to feel proud of its contribution to society.