Sample Business Studies Essay on CSR and Competitive Advantage

CSR and Competitive Advantage

Introduction

Ethics is considered the code of moral principles that governs the behavior of an individual or business (Gilbert, 2013). There is nothing unethical, as a company will only use CSR to address issues voluntarily coming out of its operations. CSR looks at ethical business or company operations as it dictates that businesses or companies operate in a way that it will serve both business interest and that of the community (Gilbert, 2013).

For instance, a company operating and in the course of its operations, releases waste to the environment. There is no problem if the same company comes out and does thorough cleaning to the environment. A company would be fulfilling its ethical obligations to the environment and the community by coming out to protect and conserve the environment through cleaning wastes, planting trees etc. CSR can also be done through sponsorship of a local football club just in appreciation for being good customers to the company.

Dual intent of CSR

Dual intent is a smart business move since the company gives back what it has taken from the society. A wholesale store or a supermarket may sponsor an event to collect funds to sponsor the less fortunate in the society. It is argued that benefits that companies derive from CSR come from the expectations of its stakeholders (Amalric & Jason, 2005).

Argument why a company should pursue CSR as a strategic strategy

It is healthy for a business or organization to conduct corporate social responsibility as a strategic necessity as this will generate a lot of benefits. A business that has good image and reputation will find it easier to recruit and retain employees since they are better motivated and productive. It will assist an organization in promotion and marketing as such sponsored activities are likely to generate positive media coverage. This is also a strategic way of introducing new products and services as the public pays more attention to the business or organization at that time. CSR creates more competitive advantage for a company since investors can step in to finance the business activities.

Company case (Manufacturing Company)

The employees provide intellectual labor and wealth of experience, the company is obligation that they receive fair compensation in form of salaries, wages, rewards, and bonuses. The local community provides local security and conducive business environment to the company, the business responds through complying with the laws and taxation issues and being responsible with the environment while supporting the community.

Culture and leadership has a positive impact to CSR as it sends a message of increased productivity and responsibility in the business. This is because it helps the business to engage socially and ethically to all business stakeholders including the local communities, employees, directors and customers at large. This makes the business to operate smoothly as it fulfills all its responsibilities to achieve its goals and objectives. It is asserted that companies emphasize on CSR to prove that government intervention in business is unnecessary (Richter, 2001)

Company definition of CSR

CSR to my company is defined as operating the company in such a way that it is responsible for the social and environmental issues through commitment by developing principles and policies that will take care of the interest of the all stakeholders of the company. Ethics is believed to be the principles governing the right or wrong done by a company (Carrol and Buchholtz, 2012). The company is on the right path since there is good relationship with the investors, strengthened consumer relationships, the business is rethinking of ways of improving its image and reputation and improved leadership in business ethics.

References

Amalric, F., & Jason, H. (2005). Economic drivers of corporate responsibility activities:

            Journal of Corporate Citizenship. Issue 20: 27-38.

Carrol, A., & Buchholtz, A. (2012). Business and society: ethics sustainability and stakeholder

management (8th ed). South-Western Cengage Learning.

Gilbert, J. (2013). Ethics for managers: philosophical foundations and business realities. New

York, NY: Routledge.

Richter, J. (2001). Holding corporations accountable: corporate conduct, international

codes and citizen action. London: Zed Books.