The Importance of Corporate Social Responsibility (CSR) Corporate Social Responsibility (“CSR”) is a way for companies to benefit themselves while also benefiting society which is very significant in an organization. It is one of the key for an organization to be success, as it is one of the few practices, which is a strategic practice that gives positive impact to an organization. CSR has a great influence on economic, environmental and social factors in numerous ways. An effective CSR strategy must consider alignment with the organization’s business strategy, commercial added value, and sustainability of impact. An effective CSR of an organization has many benefits such as making an organization’s performance and profitability becomes
CSR also works towards benefiting the local community at large, which in turn is helping to improve our society. The Corporate Social Responsibility promotes a vision of business accountability to a wide range of stakeholder, besides shareholders and investor. The key areas of concern
This product image became the reason to enable Nike to become the leading brand of the industry. Its product icon is optimistic which is also linked to the logo of the company, ‘swoosh’ and its slogan, ‘Just Do It.’ Nike’s major share of consumers are athletes, since the products of Nike are mostly sportswear and accessories. Nike focused on these consumers by having agreements between the company and various sports teams and sponsorships. This enables Nike to reach a wide range of consumers all over the world. Targeting strategies go hand in hand with the marketing segmentation of Nike.
Furthermore, there are some benefits that can help the company to increase the market value. First of all, with the triple bottom line reporting, the business can improve the risk management through enhancing the management systems and the company can have better business planning as the risks are understood. Triple bottom line reporting helps to ensure the company is embedding the corporate governance and acts ethically not only on the Board level, but also on the whole company. Although it cost time to train the staff and need more time for the preparation work about the triple bottom line reporting, the staff and the shareholder may have more confidence on the business that the organization are focused on the social contract and ensure they survive in the coming future ethically (Department of the Environment and Heritage 2003). Corporate social responsibility is embedded in the social contract and most of the company.
Nike uses the most ethos to draw the age groups together to sell the product by signing endorsement deals with athletes. Nike uses a lot big star athletes in their advertising . Big name player like LeBron James, James Harden , Kevin Durant ,Kobe Bryant and Derek Jeter. These athletes are world known people that the youth looks up to as role models. Nike creates a strong ethos by adding big name stars that are respected and look up to.
This helps to maintain Amway 's reputation with all its stakeholder Amway contributes time, effort and money to support its business communities. It creates appropriate Amway products for ABOs to sell. It develops campaigns that support the business and social aims of the company. Getting the image right is vital in a business that relies on building relationships with individuals and the wider community. Amway regularly seeks to develop new products in line with market research aimed at finding out what customers want.
Creating happiness is something the company will do if it is financially success because it can benefit everyone. For example, creditors will get paid, suppliers will continue to operate, and a percentage of profits can be allocated to the community. The last part of the mission statement, creating value and making a difference, also aligns with multiple stakeholders. Creating value is something all investors and shareholders want for their companies. Making a difference matches with the interests of the community and some
From all this, it can be concluded that sports has a positive effect on the daily life of any person. Sporting companies should participate in the development of sports for everyone, as they are directly related to this area and they are interested in it. In the economy, there is a term, which is called "Corporate Social Responsibility". It is the responsibility, which companies have to contribute to society as philanthropic and humanitarian programs. In terms of this concept, companies can arrange charity events or feasts.
• It can grow a professional network. Innovative product development will attract people from within the industry of a brand and business because they are seen as a “cutting edge” organization. People want to be connected to innovators and experts. This means the B2B and B2C networks for an organization focused on positive product development will always have a chance to
Regular CSR reports which are relevant, honest, and correctly targeted will improve credibility with the internal and external stakeholders, and in turn helps the company to gain competitive advantage over the competitors. These reports also increase employee morale and motivation, as they gain confidence in the company and their roles which they play within the company. CSR is no longer done just for philanthropic reasons but now it is integrated with company’s main goal. The companies are undergoing through a change from simply informing the public about the activities to a more detailed and comprehensive way of engaging the stakeholders. Benefit of CSR reporting: a.