Doing Well by Doing Good

- The Benefits of CSR (Corporate Social Responsibility) -


What is relationship between Bill Gates and AIDS? Have Bill Gates suffered from as AIDS? In 2000, Bill Gates and his wife, Melinda Gates, created the Bill & Melinda Gates Foundation to help the poor, improve global health, and seek solution to poverty and hunger in the U. S. and around the world. Especially, they have invested a lot of money to support the development of AIDS vaccines and other methods to prevent tens of millions of infections and deaths by AIDS. Why have they made a commitment to this activity? Why are they enthusiastic about charitable activities? This reason is CSR (Corporate Social Responsibility). If so, can CSR give benefit to corporation? The various CSR activities will definitely give a lot of benefits to businesses because businesses can gain good brand image and reputation, improve employee skills and training, achieve high productivity and good quality, and ultimately create profit through CSR.

According to a Business Respect article that Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large (“Corporate,” para. 6). CSR is closely connected with families, local community, and society through this definition. In the same article, more wide CSR’s definition is that CSR is about how companies manage the business processes to produce an overall positive impact on society (“Corporate,” para. 2). The term CSR was in common use in the early 1970s, and CSR really started through Ben & Jerry’s CSR activities such as stakeholder meetings and donating 7.5 percent of pretax profits for community (Marlin, & Marlin, 2003; Rachman, Mescon, Bovee, & Thill, 1993). In addition to, CSR commonly includes issues related to business ethics, community investment, philanthropy, donation, volunteerism, environment, governance, human rights, marketplace and workplace (BSR Staff, 2003d, p.1). There are many issues about CSR because CSR is connected to various social sectors. One of the important issues related to CSR is whether CSR is benefit to business or is not. While some business and economist who have personally experienced CSR’s advantage support CSR positively, some people who have not expeienced CSR’s benefit through CSR’s activities do not have concern of CSR or against CSR.

First, CSR can provide a lot of benefit to business because company can enhance their brand image and reputation through positive CSR activities. Basically, because almost people can easily think that company is organization that only pursues themselves profits, businesses that pursue profit have some trouble maintaining a good company reputation in capitalist society. It is not easy to keep a good company image without a specific measure such as CSR in capitalist societies. Accordingly, every company tries to seek how to make a great company image. It is a best choice to commit CSR to enhance company reputation. According to a 2002 survey of Americans conduced by Cone, Inc., “84 percent of respondents consider a company’s commitment to social issue when deciding which businesses they wanted in their community, 77 percent considered social commitment when choosing an employer, and 66 percent factored social responsibility into their investment decisions” (BSR Staff, 2003a, p 2). Such survey result exhibits that CSR is a very important factor to improve company image and that CSR has a great effect on customers, employees, and investors’ choices. In other word, CSR is directly connected with company profit. Eventually, positive CSR activities will give a lot of benefits to business through enhancing company brand image and reputation.

Second, business’s volunteerism which is performed by company member especially employees gives advantage to corporation through improving employee skills and training, and encouraging employee teamwork and employee’s pride about company because employee can gain different knowledge, information and skills through volunteerism programs at various fields. For example, BT Group PLC (Public Limited Company) found that volunteering and other forms of employee community involvement helped develop a variety of competencies, including teamwork, planning and implementation, communication, project management, listening skills and customer focus (BSR Staff, 2003g, p. 1). Also, volunteerism can encourage employee teamwork and employee loyalty. Volunteerism commonly forms team to accomplish tasks. So, employees who take part in volunteerism can experience a lot of teamwork activities. For example, Samsung Group which is one of the best businesses in South Korea has managed Samsung community Service Team participating employers, managers, and employees. Approximately 70,500 Samsung employees have performed volunteerism at various fields such as social welfare, protection of environment, education, and cultural art. Usually, volunteers decided their professional activity field, formed each professional volunteerism team and then, practiced volunteerism. Samsung employees can experience a lot of teamwork and feel pride and loyalty about company through participating volunteerism (BSR Staff, 2003g, p. 7). Such volunteerism eventually influences work processes and productivities in company. Consequently, business’s volunteerism will provide many advantages to business through improving employee skill and teamwork.

Third, CSR offers profit to company through achieving high productivity and good quality. Corporate environmental responsibility and consideration can improve productivity and reduce cost. For example, BSR staff introduced that “Waste disposal managers at LA’s International Airport began looking for creative ways to handle the 19,000 tons of food scraps produced on their premises each year. They soon formed a pilot program with a nearby sewage and utility plant to process the scraps through huge digesters and send the resulting methane on to the utility. The airport now saves $12 a ton in disposal costs and receives $18 a ton for the energy generated by its scraps. In addition, the sewage digesters churn out reusable water and a nutrient-rich sludge that can be sold as fertilizer” (2003c, p. 2). Also, corporate consideration of workplace can contribute to improve productivity and quality of goods and services. If a company has consideration for laborers’ welfare and working environment, employees will work harder to accomplish high productivity and quality. Accordingly, CSR will offer profit to business through achieving high productivity and good quality.

Opponents claim that CSR is not useful thing to business because company has to spend a lot of money and time to perform CSR. Opponents insist that a company’s main obligation is to remain in business and maximize profits and companies do not need to perform CSR. However, businesses can never prolong their life alone. Modern businesses are surrounded by complicated environment. The business has to consider to community and society including customer, employees, and investors because they have a great effect on business management and survival. In addition CSR is one of the very important business activities for all companies. It is not too much to say that CSR is an essential factor in business activities. In 21century, if a company wants constant development, the company will strive to perform and develop various CSR activities.

In conclusion, a variety of CSR activities can give numerous advantages to business. Although CSR has a lot of benefits for company, this concept is not universal value for companies. However, if many companies know CSR’s real value, they will invest for CSR and consider to community and society. Therefore, if businesses want to survive and develop their organization, businesses have to consider and invest CSR actively. Here are three real values of CSR. First, a positive CSR activity of business is the best way to enhance company brand image and reputation. Next, CSR can encourage employee skills, training, teamwork, pride, and loyalty through various volunteerisms. Third, business can achieve high productivity and good quality through corporate environmental responsibility and consideration of workplace. Eventually, CSR can give business a lot of advantages through creating profit. Modern businesses continuously have to consider why Bill Gates invests a lot of money to eliminate AIDS.


[References]

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Rachman, D., Mescon, M., Bovee, C., & Thill, J. (1993). Ethical and social responsibilities of business. Business Today. NY: McGraw-Hill. pp. 88-120.