Corporate Social Responsibility (CSR) describes the practices and policies of a company that is aimed not at generating financial profit but at bringing good for stakeholders. In particular, this concept includes the organization’s philanthropic activities in relation to society, the environment, or the community. CSR is a commercial company’s contribution to improving the life of an entire society or individual communities based on the ethical principles of moral right and wrong. CSR can provide an additional competitive advantage for companies seeking to meet the needs and expectations of stakeholders.
While CSR requires additional effort and resources from a company, it can provide a competitive advantage. First of all, caring for society and participating in its development is associated with improving the company’s reputation in the perception of stakeholders (Singh & Misra, 2021). However, attitudes towards the company’s different philanthropic activities on the part of society may vary. Therefore, it is extremely important for the company to take into account the needs of the community and customers and develop CSR policies in accordance with their expectations. Singh and Misra (2021) emphasize that this approach can significantly impact company performance through a more positive impression and reputation. The CSR of the organization’s activity in relation to external stakeholders can become an additional competitive advantage for the company in the long term.
It is also important that philanthropic activities can positively influence the attitude of employees towards the company, which also positively affects performance. It is noted that CSR is positively correlated with a decrease in turnover rates, which is an advantage (Ng et al., 2018). Ng et al. (2018) emphasize that an organization’s CSR has the same impact on employees as it does on customers. Therefore, the company should take into account the needs and expectations of employees in order to develop appropriate CSR activities.
For me, philanthropic activities do not play a key role in shaping the perception of business. However, when a company is involved in meaningful CSR practices, I develop a more positive attitude toward it. I prioritize companies that do not simply make a point of being socially responsible but are involved in actual CSR practices. The use of this concept for promotion causes rather negative associations, as it looks insincere.
References
Ng, T., Yam, K. C., & Aguinis, H. (2018). Employee perceptions of corporate social responsibility: Effects on pride, embeddedness, and turnover. Personnel Psychology, 72, 107-137.
Singh, K., & Misra, M. (2021). Linking Corporate Social Responsibility (CSR) and Organizational Performance: The moderating effect of Corporate reputation. European Research on Management and Business Economics, 27(1), 1-10.