Executive Summary – Impact Of Corporate Social Responsibility On An Organization’s Success
The manner in which organizations conduct their business operations has changed drastically due to increased globalization, market liberalization, technological advancement and changes in consumer demands. These changes have encouraged companies to act in socially and environmentally responsible manner to attract and retain customers as well as to adhere to the set rules and regulations. This study focuses on the significance of corporate social responsibility as a new marketing strategy and its impacts on organizational success. Impact Of Corporate Social Responsibility On An Organization’s Success.
In the current business world, competition in every sector has increased forcing managers and business owners to device new strategies of achieving success and sustainability in the market. Corporate social responsibility initiatives are viewed as good marketing strategies where organizations influence the well being of the stakeholders such as employees, customers, suppliers and the surrounding community. The aim of this study is to investigate and examine the impacts of corporate social responsibility strategy on the success of an organization. Impact Of Corporate Social Responsibility On An Organization’s Success.
The study is based on three theories of corporate social responsibility namely; managerial theory, utilitarianism theory, and relational theory. These theories explain why companies engage on social responsible behaviors and their outcomes in terms of performance. Several studies have investigated the significance of corporate social responsibility initiatives especially in relation to financial performance and have given mixed reactions. However, based on the studies reviewed in the literature review section, companies engage in corporate social responsible initiatives to maximize their profits, therefore, there is positive relationship between corporate social responsibility activities and organizational performance. Impact Of Corporate Social Responsibility On An Organization’s Success.
Relational theory is based on the complex company- environment relationships. The theory was developed to explain stakeholder approach. The proponents of this theory are mainly concerned on explaining and analyzing the relationship between the environment and business processes. In this case, practitioners explain the role of a business or an organization in a society. Impact Of Corporate Social Responsibility On An Organization’s Success.
As mentioned by Uecker-Mercado and Walker (2012) any business operation influence the livelihood of the surrounding communities socially, economically, politically, and environmentally. Thus, businesses should conduct their operations in a manner that does not negatively impact on the surrounding communities. The Deepwater Horizons oil spills of 2010 in the Gulf of Mexico by British Petroleum Company was against the premise of relational theory because the business operations that led to the oil spill were not conducted in a way that would benefit but harm the community. Impact Of Corporate Social Responsibility On An Organization’s Success.
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