CSR can sometimes be good for the companie's profit margins but Essay

CSR can sometimes be good for the companies profit margins but sometimes non - Essay ExampleStudies on somatic performance of different companies show a positive correlation between a companys financial performance and how it practices CSR (Horrigan 2010 273). According to a Harvard University study, companies which had a sense of CSR showed four times the growth enumerate compared to companies focusing primarily on profit maximization (Fernando 2009 11). Often when employers are unable to achieve a raise in profit margins, they blame it on CSR rather than on incorrect implementation. Also, CSR may not prove to be advantageous for a company when certain obstacles like lack of awareness and time among managers (Fernando 2009 11) are not removed which can quite effectively drag a business down, so timely identification of any obstacles is highly important for reaching desired targets. It is make dod that when integrated into business model, sometimes CSR leads to better financial performance and overall reputation while at other times it just now may not. This look for basically aims at contemplating the extent to which CSR can prove to be effective for a companys profit margins and what relevant literature has to say on the subject when CSR does not tending in improving the financial position of a company. CSR is a broad ideology and covers all responsibilities and obligations that companies or organizations owe to the rules of order in which they operate at any point in time (Crane 2008 201-202). It helps to take in that business is being operated in a manner which complies with both local ethical standards and international norms. CSR basically operates out of this philosophical idea that companies can and should operate ethically (Miller & Jentz 2007 68). It works by inculcating this sense in the employers or managers minds that all kinds of business activities should inflict a positive influence on the employees, consumers, stakeholders, communiti es, and environment. When the idea of neighborly responsibility in relation to business activities first made appearance in the business human race in the late 1960s, it was considered controversial by many (Karake-Shalhoub 1999 xi). It is believed that condescension a growing body of explore identifying association of CSR with enhanced financial performance and organizational reputation, this business model still remains a controversial subject and continues to attract a large collection of opponents who argue that the whole concept of CSR is some irrelevant to business success (Freeman & Liedtka cited in Asongu 2007 27). It is this conflict regarding the efficacy of CSR which will be discussed and scrutinized in the essay to determine the extent to which it could be related to business growth and sustained development and the extent to which those who argue against its credibility could be taken seriously. There is also a large percentage of people who despite knowing that CS R is not irrelevant to business still think that this is a bad idea to be incorporated into the organizational framework (Banhegyi 2007 325). However, it is increasingly believed that CSR encourages a business organization to identify all members of the society who may be considered as stakeholders and then incorporate their needs into the strategic decision-making process (University of Miami cited in Asongu 2007 28) so as to strengthen the relationship between business and the community in which it is based.