Effects of Corporate Social Responsibility on Business Success

Introduction 

Corporate Social Responsibility (CSR) has become an increasing debate in recent years. Other communities have made it an obligation of the companies they host; they have to support social activities. There is a substantial amount of managers who also believe that business organizations have a responsibility to be concerned about the societies who host their businesses by giving back. In addition to engaging in CSR as a way of giving back, proponents of the idea also believe that CSR promotes the success of a business. As a way to convince other people who refuse to embrace the idea of CSR, this paper looks to analyze the good that CSR can bring to a business organization. This paper looks at the literature of the same topic as done by other studies and the evaluations thereof. Specifically, the paper analyses the aspects of CSR vis-à-vis the elements of measuring business success 

An Overview of Corporate Social Responsibility 

Under this subheading, the paper shall discuss the various elements of Corporate Social Responsibility. CSR is a very wide topic. The paper shall cover the various ways through which various companies perceive CSR, the specific areas of CSR activities, and how they engage in this noble activity. CSR has a universal definition. However, various companies have made it a habit to design their own definitions of CSR. On this particular line, the paper shall discuss the various strategies that companies do to set their CSR projects successful. 

Specifically, the paper shall analyze the legal requirements that companies look to meet prior to flagging off their CSR plans, and these include the initial stages of employee involvement, the various training that organizations conduct for their employees in so as to start the CSR projects. The paper also discusses the licensing and government partnerships that companies have to meet before engaging in CSR. Additionally, the paper discusses the level of assessment that companies do prior to CSR projects and the desire to achieve a successful project. Additionally, I will look at the level of planning that these organizations put in place for Corporate Social Responsibility and any other investment thereof. On top of that, the paper analyzes other costs that companies spend to promote CSR activities and to achieve the intended impacts. On this note, the paper takes an overview of the budget process and an overview of monetary input that these companies must invest in to complete the CSR projects. 

CSR Effects on Market Share 

Under this sub-topic, the paper shall discuss the various factors that play for a company to achieve a specific share of the market. The topic of market share comes to play because it is one definite way that can be used to measure the success of a business organization. Therefore, evaluating the impacts of CSR on a company’s share on the market will be a sure way to measure the effects on the success of the business. The paper shall seek information from select business organizations who engage in social responsibility and gather information on their respective positions in the market. The paper will specifically keep the focus on their respective percentage of market share before and after a series of social responsibility investments as a way of evaluating what changes are there in their market share after CSR. Additionally, the paper shall analyze the various opinions of select companies who participate in CSR on various levels, especially companies in a similar industry. On this note, the paper shall seek the customer perception of these companies and seek whether their loyalty to these companies are affected by their social responsibilities that these companies engage in. This analysis will be in a good position to evaluate the effects that Corporate Social Responsibility poses on market share, which influence business success. 

CSR Effects on Employee Retention Rate 

Another measure of business success is the ability of a company to attract the best human resource and retain them at the same time. Certain managers believe that CSR plays a role in enabling employee retention and making the company attract better quality from the human resource market. This paper will analyze the human resource of select companies. This will include the employee retention rate of various companies. On a similar note, the paper shall analyze the employees of selected companies and evaluate their respective satisfaction and further seek whether their satisfaction levels are influenced by their company’s involvement in CSR. The paper discusses the perception of the people who make up the human resource industry, including fresh graduates, by looking at their preferred companies for their careers. Specifically, the paper will ask how CSR affect their respective preferences. 

CSR Effects on Brand Recognition 

Brand recognition is yet another way to measure the success of a business. Corporate moguls who support CSR believe that it promotes brand recognition of a company’s products and thus increase the company’s sales. This paper will evaluate how involvement in social responsibility improves a company’s brand recognition. The paper will analyze some of the most famous brands and their respective users. The paper will review the perception of the customers of these brands. Additionally, the paper will analyze the involvement of some of the famous brands in Corporate Social Responsibility. Subsequently, the paper will review how CSR affects these brands. On a similar note, the paper shall seek information about how these famous brands gained massive recognition among users and the direct impact that they receive as per recognition during CSR endeavors. 

References 

Aramburu, I. A., & Pescador, I. G. (2019). The effects of corporate social responsibility on customer loyalty: The mediating effect of reputation in cooperative banks versus commercial banks in the Basque country. Journal of Business Ethics , 154 (3), 701-719. 

Asemah, E. S., Okpanachi, R. A., & Edegoh, L. O. (2013). Business advantages of corporate social responsibility practice: A critical review. New Media and Mass Communication , 18 (3), 45-52. 

Choongo, P. (2017). A longitudinal study of the impact of corporate social responsibility on firm performance in SMEs in Zambia. Sustainability , 9 (8), 1300. 

Siddiq, S., & Javed, S. (2014). Impact of CSR on organizational performance. European Journal of Business and Management , 6 (27), 40-45. 

Sun, L., & Yu, T. R. (2015). The impact of corporate social responsibility on employee performance and cost. Review of Accounting and Finance , 14 (3), 262-284 

Yusof, J. M., Manan, H. A., Karim, N. A., & Kassim, N. A. M. (2014). Customer's Loyalty effects of CSR Initiatives. Procedia-Social and Behavioral Sciences. Malaysia .