Corporate Social Responsibility Challenges

Today, business organizations are faced with more social responsibilities than any other time in history. Other than providing goods and services, businesses aim to contribute to the social issues that affect the general population. In businesses where a wider impact is expected to the environment, the management aims to take necessary steps to ensure that they contribute to conservation and uphold integrity. Corporate Social Responsibilities (CSR) involves going beyond what the goals and objectives of business entities are and engaging in issues that affect the social wellbeing of the population in areas surrounding the business or the organization. CSR projects involve costs that do not benefit the business operations in any way for thy aim to bring about positive social and environmental impacts in the society. Corporations might have an immense impact on the business if the operations are not taken care into. Manufacturing companies are likely to release waste gas into the environment, eventually contributing to the global warming problems. A release of wastes into the water bodies also affect the environmental pollution status and generally affect the health of the population that depend on the eater from the polluted systems. This essay discusses the challenges faced by corporations in the process of fulfilling their CSR. 

Businesses are beginning to be ethically considerate when choosing the types of operations to undertake. Today, they work hand in hand with the local communities in determining what is best for the community and the business (Carroll, 2015). The aim is to establish a mutual benefit strategy that improves the corporation's gain and enhance social security to the locals. Corporations are still on the upward trend in enhancing viable business and the environmental integrity in the community. Organizations contribute to the fight against environmental destruction in several ways. They can stop or minimize actions that contribute to pollution, contribute to the fight against pollution financially or by providing education to the locals, and take part in environmental cleaning practices. Apart from environmental issues, corporations also take part in community developmental programs. A number of businesses financially contribute to educational advancement in the society by providing scholarships and educational materials to schools (Carroll, 2015). Another way in which corporations take part in community issues is providing funds, goods, and services to the communities that are affected by natural calamities and other forms of emergencies. Tsunamis, storms, and terrorism are among the causes of emergencies to the community. Some corporations may take part in the evacuation, provision of drugs, foodstuffs, clothing, and building materials to the victims. Business entities are also concerned with the social wellbeing of their employees (Carroll, 2015). They provide benefits and compensation to their workforce so as to enhance health, cohesion, hard work and loyalty. Such programs increase the costs of the business operations and may lead to significant reduction in returns and profits at the end of the day. Corporation managers, need to take care and caution when engaging in environmental and social responsibilities to minimize chances of causing losses in the long run. Costs incurred in the social responsibility programs are not investments that directly increase the profits in return and should be considered after necessary investment options have been met. For example, it would be detrimental to channel large sums of money into the scholarship programs at the expense of employee salaries (Carroll, 2015). 

The engagement in environmental and community development programs may have a significant effect on the business. It leads to a significant decrease in the business profits and returns (Carroll, 2015). It may also have other long-term effects on the business and stakeholders. Low returns may dissatisfy investors and shareholders leading to termination of contracts and withdrawal of members. The result would be a business entity that lacks adequate funding and thus has a limited operation. The business economies shrink leading to loss of ability to carry out day to day operations and meet the needs of employees, customers, investors, etc. The environmental and social responsibilities may also lead to positive changes in the long run (Carroll, 2015). Businesses that improve the locals' quality of life are also likely to see a boost in purchases and performance later on. The same community that was empowered becomes the consumers of the products and services provide. This increases the customer base and the profits. Engaging in environmental conservation and non-pollution policies lead to a healthy and sustainable community life. Instead of spending a lot on medication and health related services, the money could be channeled to the business' goods and services. A healthy community provides a better customer base for they have the ability to buy goods and pay for services (Crane & Glozer, 2016). 

Corporations seek to engage in activities that help improve their stakes in the community and enhance the people's social well-being. Managers of such corporations may seek the counsel of professional to avoid overdoing it at the risk of the business basic operations which are profit making, growth, and expansion (Carroll, 2015). The managers may also seek to engage in activities that not only benefit the communities but also improve the company's image with the aim of benefiting from the sale of the company name. It is also important for the corporation leadership to ensure that the interest of the stake and stockholders are met before engaging in other cost related activities. Without the stakeholders and stockholders, the business would not have the ability to carry out basic operations, let alone engaging in secondary operations (Carroll, 2015). It is, therefore, important to meet internal needs then go out to improving the situation in the neighborhood. Finally, businesses need to have a long-term goal when engaging in Corporate Social Responsibility. The process should work in a way that it provides information and a ground for improved business in the long run. For example, a research carried out in the community might inform on the community's financial abilities and need, eventually leading to the development of auxiliary services and products to meet their needs. Firms should engage shareholders are proved information on CSR programs so that they have an understanding of what is happening and what to do at particular times (Crane & Glozer, 2016). 

Corporate Social responsibilities are an important aspect of any organization. They play a major role in the improvement of the situation o0n the ground through mitigation of environmental issues. CSR also improves the quality of lives of the locals by providing support services to the community and in times of calamities and emergencies. However, organizations' managers need to ensure that they make consideration not to engage in processes that will have a negative impact on the business in the long run. It is important to understand the costs of such operations so that the primary functions are not denied adequate funding. Excessive engagement in the CSR may lead affect profits, salaries to the employees and dividends to the stockholders leading to significant problems such as employee dissatisfaction, quitting for firms with better and sustainable pay and shareholder withdrawal and the end of the financial years. The loss of employees and stockholders due to satisfaction affects day to day operations and financial stability. In the end, the business lacks the ability to self-sustain and goes into depression and may eventually close. It is important for managers to explore the CSR programs that are sustainable and the ones that add value to the business entity in the long run. 

References; 

Carroll, A. B. (2015). Corporate social responsibility. Organizational Dynamics, 44(2), 87-96. 

Crane, A., & Glozer, S. (2016). Researching corporate social responsibility communication: themes, opportunities, and challenges. Journal of Management Studies, 53(7), 1223-1252.