The Role Of Corporate Social Responsibility In Business

One of the journals that we choose is corporate social responsibility as a source of competitive advantage: The mediating role of social capital and reputational capital by Muhammad Mohtsham Saeed & Faria Arshad. From the journal, corporate social responsibility (CSR) has been an important issue in business management since decades. The author has an idea that since corporate social responsibility (CSR) relates to responsible behaviour toward society and environment, therefore it is an effective management tool to improve the organizations’ performance in stakeholder’s mind.

Three different activities were categorized under activities of corporate social responsibility (CSR) including economic growth, ecological balance and social progress. Influence of CSR will bring impact to the financial performance (FP) and social performance of an organization. From the journal, under the

It is the economic value that generates a good return for the owners and shareholders thought their investments. Besides that, it also creates jobs to the society as well as giving a fair pay to them, and making development in the business. In fact, it has the same idea with the basic responsibilities of the organization that is to produce goods and services with quality to fulfil society’s demand, and maximizes profits for the organization as well as increases the wealth for the owners and stockholders which was also stated in our textbook. It also means that this is profitable. Legal is another dimension of the CSR that is to obey and follow the rules and to govern the business according to government legislation. It complies with the concept highlighted in out textbook that is legal responsibility which means what society deems as important with respect to appropriate corporate behaviour. With this, main target of a business is to achieve economic goals within the framework of legal