Competitive Advantages Of Corporate Social Responsibility (CSR) To Organizations In The Modern Business Environment

Editor's Review

Its true that the business structure is totally changed now as compared to past years, where companies were only focusing on their products and profit. In todays business environment it is not enough for the companies to focus on their profit to be listed in the most popular or famous companies of the world.

Furthermore it is a fact that todays employees and customers expect from their companies to bring positive change to their surroundings or to the world. A 2020 study by Porter Novelli described that 88% employees believe that its not enough for a company to only make profit, there must be a wonderful impact of a company within the society.

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So, it is one of the essential routes which a company must follow for its development is to corporate with the society. Likewise here comes the approach corporate social responsibility (CSR) which must be well defined.

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is the concept to think and act positively for the environment or society by a company to benefit both the company as well as the society.

Introduction

A company that wants to corporate with the society or a company that is willing to provide valuable benefits to the community needs a CSR effort for its team to get the job done.

CSR assists organizations to build strong and close relationships with their customers and employees. Moreover by utilizing CSR strategy the organization will be well-known in the society as well as in the whole world. It increases customer satisfaction and loyalty. CSR also improve brand imaging and increases employee engagement.

As CSR deliver social, economic and environmental benefits so, it should be a part of company's culture from day one. It gives a competitive advantage to the share holders by leading the corporation to success. Philosopher Henry David Thoreau said that "Goodness is the only investment that never fails". We have shared below the way through which CSR gives competitive advantage and leads the organizations towards success.

Competitive Advantages

1-Increased employee satisfaction

Without employees or their satisfaction an organization is like a torn skin from the lips. CSR is one of the solid reasons behind the motivation and satisfaction of employees.

The way a company treats its community says a lot about how a company treats its employees. If a company is giving valuable values to its community then definitely we can say that it provides a comfortable environment to its employees.

Because of the respected and supported environment the employees will perform effectively in their jobs. Furthermore employees will automatically be motivated by analyzing the contributions of company to the community. 

According to Harvard Business School almost 90% of employees who work at companies with a strong and beneficial sense of purpose say they are more inspired, loyal and motivated. If the employees of any company are loyal and motivated then the production level of the company will boost up automatically. A research shows that engaged employees have a 17% increase in productivity and 21% more profitable.

2-A happy and healthy society breeds a healthy business

As we know that without a happy and healthy society no any business will be in the path of development. For a healthy business there must be healthy people in its surrounding. If the people of a society are facing issues like land, water and air pollution then they will not have the time to consider your innovative products.

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It's the CSR which is the building block of a happy and healthy society. If a company is promotion a happier and healthier society by taking care of pollution (land, air, water) and by providing beneficial products then it make sense for company's business.

3-Increases Brand Recognition

Most of the companies are following advertisement process to make their brand famous by paying charges but the procedure does not give good or effective results. Again here comes the CSR effort which brings your brand to the attention of people.

If a company associates its brand with positive social Chang then the company will earn full media coverage because people are hungry for positive stories.

Recently Pakistan Center of Philanthropy (PCP) has posted a post at Facebook on advancing gender equality in two districts of Hunza and Diamer in GBC. Actually PCP is looking for two coordinators to study of existing less formal organizations in two districts of Hunza and Diamer. The collected data will provide evidence on how a formal society organization contribute and cause a change in women's economic and social empowerment.

The aim of the project is to impact training on peer-2-peer learning workshop, leadership development (with particular emphasis on women participation in social and economic activities and collaboration with other corporation for progressive intervention to assist and guide women to improve their socio-economic status and leadership in the society.

In 2010, Coca-Cola started the 5by20 initiative to empower women across the world. The aim of the company was to equip women entrepreneurs to overcome social and economic barriers by providing business skills training to women. It was one if the best steps to demolish the concept that women are not equal to men and the step had a great impact on the society.

Conclusion

It's concluded that without CSR no corporation will be in the path of real and long term development. If a company wants to be listed in the top companies of the world then it should have to follow the CSR strategy. It's the CSR strategy with the help of it any company can stay in the hearts and minds as well of the people of community.

According to today's business environment every customer wants a positive change in the society. So, if a corporation wants to be succeed then it can be clearly done only by following the Corporate Social Responsibility (CSR) strategy.