CSR Projects and Implications of Noninvolvement Business Essay

CSR Projects and Implications of Noninvolvement
The business environment has become very dynamic and it is only organizations that are strategic and tactful that exhibit immense success characterized by increased revenue and profits. With consumers becoming empowered and putting more emphasis on associating with businesses and brands that value and appreciate them, organizations have been forced to become more customer-centric. One notable and highly rewarding mechanism that many organizations around the world continue to employ in efforts of connecting with their consumers is corporate social responsibility (CSR). It is also identified as corporate citizenship and assists businesses to be socially accountable not only to themselves and their stakeholders but also the general public (Allen and Craig 2016). With CSR, businesses become more conscious on the economic, social and environmental impacts they are having in society (Allen and Craig 2016). CSR can take different forms including philanthropic efforts, environmental conservation, and supporting of volunteer efforts among others. There are various benefits that businesses obtain from their engagements in CSR activities such as improved public image and increased customer engagement, brand awareness and recognition (Masoud 2017). Overall, effective implementation of CSR projects makes customers and the public in general want to associate more with an organization. On the contrary, in the current business environment a lack of association in CSR ventures can be very detrimental for an organization.
Understanding Corporate Social Responsibility (CSR)
CSR is a business model that has gained significant traction over the recent past particularly in light of the continuously changing consumer behavior that has seen them become more empowered in terms of making their purchasing decisions. Gone are the days when price and the quality of goods were the only determinants and choices individuals had when making decisions concerning the businesses they want to engage with. Consumers have understood that they are king in the business landscape and as such, seek to associate with companies and firms that value and appreciate them not only as customers but as individuals in society (Trong Tuan 2012). Consumers are more inclined on supporting businesses that give back to society in one way or another and through the CSR projects. For instance, through the buy one donate one initiative by TOMS consumers purchase shoes from the company because the organization in turn helps out the disadvantaged in society with the donations. According to Tilt (2016), “By practicing corporate social responsibility, also called corporate citizenship, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental” (pg.8). Based on the above statement, companies have been forced to operate ethically as opposed to condoning negative practices that infringe on the rights and freedom of not only the members of the surrounding community but individuals in other parts of the globe. Similarly, reports indicate that 75% of consumers are more likely to engage with organizations that support and are in agreement to certain issues in society (Tilt 2016). As such, with consumers holding the power of choice over firms, they are continuously using their funds as tools to influence ethical and sustainable business operations.
It has been noted that engagement in CSR ventures is vital to the success of organizations globally. Statistics indicate that 90% of global consumers expect the businesses they associate with to participate in addressing either social or environmental issues (Ross 2017). From figure 1, while 44% of consumers rank price as a major decision-maker in their purchasing decisions, a whooping 71% of customers find companies that engage in environmentally-friendly business practices as being more adorable and worth associating with. For instance, more companies are currently engaged in efforts of helping society mitigate the impacts of climate change. Some of the organizations have taken steps to reduce their carbon footprints by embracing alternative sources of energy. These include Starbucks, Nestle, Coca Cola, and Unilever among others. They are closely followed by consumers who appreciate firms that give back to the community or are socially responsible at 68%. Global footwear company TOMS is widely renowned for its “buy a pair, give a pair” socially-conscious business model. TOMS donates a pair for every one purchased to a needy child in one of the emerging nations (Brown 2013). From the initiative, consumers see their association or rather the purchases they make as means of assisting the less-disadvantaged in society.
Figure 1: https://clutch.co/pr-firms/resources/how-corporate-social-responsibility-influences-buying-decisions
Additionally, engagement in CSR activities benefits businesses in different ways. To begin with, it improves an organization’s public image (Michaels and Grüning 2018). With technological advancements particularly in information communication empowering consumers, many individuals can easily search the internet to learn more about a specific organization before engaging with it. As is usually the case, businesses that participate in CSR ventures such as TOMS tend to share pictures and stories of the people and communities they have helped in the past. Consequently, the initiative builds its image to the public. Secondly, through broadcasting of CSR activities not only on company websites but also through social media platforms, organizations increase their brand awareness and recognition (Masoud 2017). With social media platforms s...