Corporate Social Responsibility and Organizational Growth

Organizational Management
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Question Two
Since businesses perform in various societies, they usually look for measures to attain an outstanding relationship with the surrounding society since a great relationship could be transformed into profits. Even though there are various ways the organizations, one of the outstanding processes which most organizations employ is corporate social responsibility. Corporate social responsibility refers to a self-regulating business model organizations employ to hold themselves accountable to the general public and its stakeholders (Fernando, 2023). Even though some people support CSR since it helps to boost the organizations' relationship with stakeholders and the general public, others oppose this move, stating that it deviates from the organization's motive, which is to maximize profit since these measures take some business money. To understand the impact of CSR, a business case of CSR is critical to know whether organizations should invest in it.
One of the companies that have been consistent in maintaining corporate social responsibility is Johnson & Johnson. This American-based multinational corporation was founded in 1886 and has been known to develop pharmaceuticals, medical devices, and consumer packaged goods. Despite being one of the best-performing companies globally, it is also known to have an outstanding corporate social responsibility. For example, there was an instance where Johnson & Johnson was believed to be responsible for contaminating some of its products where the pills were believed to have been tampered with after they reached the market shelves. The individual who committed this crime added potassium cyanide to every capsule, which could have the ability to kill thousands of people. This criminal act made people experience copycat crimes, nationwide panic, and suspicion that Halloween candy could also be poisoned.
The organization's actions have proven the true meaning of CSR since it decided to take the route which most companies could have avoided. For example, despite the Tylenol products offering approximately 17% of the company’s annual income, the organization acted swiftly to correct this situation. For instance, the company removed all these products from the shelves and gave refunds and safer tablets for free. Even though most people were surprised whether the company would continue to perform normally after a huge loss, these measures helped it attain outstanding results. For instance, this move made Johnson & Johnson the first manufacturer to use tamper-proof packaging. For example, even after reintroducing Tylenol products in the market after two months, these products have seal beneath and around the child-proof cap. This process helped the company launch an extensive marketing campaign touting its new packaging.
Even though most people expected the following events to be a blow to the company, the organization's quick, responsible, and honest handling of the incident was believed to positively impact both the investors and the general public. This process helped the company recover its financial losses while regaining its lost customer trust.
In addition to these measures, Johnson and Johnson have been on the frontline for CSR. For example, over the last three decades, the company usually engaged in measures that could help reduce the planet's negative impact. For example, the company has been involved in initiatives leveraging wind power to offer safer water to communities around the globe. Furthermore, the company purchased from a privately-owned supplier based in Texas Panhandle, which has helped the organization minimize pollution by offering a renewable and economical energy source as an alternative to electricity. The company has also been looking for renewable energy options, looking forward to attaining 100% renewable sources to solve its energy needs.
Even though some people have been questioning CSR, it has outstanding results. For instance, corporate social responsibility has helped businesses create new value or reclaim the value they had lost. For instance, in most instances, when the company engages in measures that boost the community, the community starts having a positive perspective. This process usually helps the company to increase its competitiveness since society will prefer its products more than its competitors. Furthermore, this approach usually boosts the company's innovation. Since the organization is engaging with society, it will likely identify the areas the society is suffering and employ measures to boost them, helping to attain outstanding performance. This model will also sustain the business in the long run. For example, through CSR, Johnson & Johnson succeeded in reclaiming the image and trust it had lost and even boosted it further.
Moreover, there are other instances where some businesses use corporate social responsibility as a risk management process. One of the operational costs that businesses incur is employee turnover. In most instances, CSR usually reduces employed turnover by a huge margin. The main reason is that employees are usually satisfied whenever they engage in measures that give back to society. Moreover, it helps th...