Organizations and businesses around the world are opened every day, initially started to make profit. Each organization has a different goal, but it is impossible to reach that goal if they are not making profit from their products or services. Profit is the money left after paying the expenses of an organization. Organizations usually use profit to buy new equipment and machinery. It can also be used in the expansion of new businesses. (Marinucci et al., 2007)
Some organizations think that no CSR means quick and big profit, and that may be true. But CSR will for sure bring back money even if it takes a long period of time. The company will not only get money back, they will have satisfied customers and a good reputation in the community.
Organization take CSR into consideration to improve their image to the community. CSR also can improve the financial the status of an organization. “Here we define CSR as actions that appear to further some social good, beyond the interests of the firm and that which is required by law. This definition underscores that, to us, CSR means going beyond obeying the law.” Abagail McWilliams & Donald Siegel, 2001 vi (Beal and IVONNE, 2013)
CSR can be in many forms; organizations can participate in finding solution to decrease pollution. Dell Inc. has reduced its packaging and Increased the number of recyclable, recycled and renewable materials. That saved 9 tons of harmful material. Another activity organization tend to involve in is sports. In the UK, Barclays is the official sponsor of the BPL which is one of the biggest and most competitive leagues around the world.
(Dell, 2016) (BPL, 2015)
Advantages and Disadvantages of CSR:
Some organizations don’t believe in CSR, their mind is set is set to maximize profit. Neglecting their CSR towards the community, and the planet their living in. However, focusing in profit only has good sides. Volkswagen, for an example are an absolute failure in terms of CSR. They deliberately designed a strategy to control emissions, known one of the worst strategies to dispose emissions. But this strategy gave them a big advantage over their competitors in the market, maximizing their profit. Big organizations can improve a country`s economy, especially if they aim for profit only. That is what some organizations do to have a good relation with the government. These organizations usually are hated by the community, even by their own employees sometimes. Many thinkers around the world are convinced that a business should not think about anything rather than profit. Ignoring CSR will impact positively to the business they think. By not wasting time, energy and most importantly money on CSR will make them aim straight to profit and nothing else. Many entrepreneurs and writers think that a business only goal is to make profit. “There is one and only one responsibility of business: to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game.”
(Friedman, no date)
While other organizations take CSR seriously, employing specialists in this field to confirm a success in CSR. Focusing on CSR will for sure enhance a organization`s reputation. That’s why many big companies use CSR. CSR has uncountable advantages; an organization may have a bad reputation about its products or services. CSR can change the thinking of costumers about that negative point in the organization. McDonalds, known for its unhealthy fast food that causes obesity, so the directors of Mac decided to sponsor one of the biggest sport events, the Olympics. By sponsoring this event they succeed to win customers minds. It shows people that McDonalds care for their costumer health.
(McDonalds, no date)
CSR also maintains a positive atmosphere for the workforce in the organizations. That will result in a better quality and more efficient work. CSR also makes organizations help people around the world. Building houses and feeding hungry children in poor countries.
Tyson Foods, one of the largest producer of prepared foods. They have donated more than 9 million pound of food in Fiscal 2015. That is a very attractive work, it will surely get the attention of media and that will surely get costumers in their sides.
Organizations always seek for a good reputation, showing their good approach towards humanity and the earth, while keeping their business and the goal of maximizing profit aside. A very well-known quote by Henry Ford says “A business that makes only money is a poor business” (Cohen-Almagor, no date:78)
Some disadvantages of the CSR is that it may be risky for some organizations. Spending money without a guarantee of getting it back. Another negative point is that the organization cannot accomplish the government requirements on CSR and this will lead to legal trails and maybe fines they cannot afford.
Organizations can use the TBL (triple bottom line) which is a framework incorporating social, financial and environmental performances. (Slaper, no date). The reason behind the TBL is that the organization can calculate their gains and losses, likely to take actions and improve their business and the community. (Matteson and 2016, 2016)
Choosing between focusing in maximizing a profit or focusing on the CSR, I will definitely choose the CSR. With focusing on the CSR and keeping an eye on the organization`s business, the organization will be a hand of thousands of hands that are trying to make the world a better place to live in. So starting a business is not only responsible for making profits, it is a responsibility toward the environment, the people and to yourself as a human.
Beal, B.D. and IVONNE, P. (2013) Corporate social responsibility: Definition, core issues, and recent developments. Los Angeles: SAGE Publications.
BPL (2015) Available at: http://fifabeast.com/wp-content/uploads/2013/10/BPL-Logo-300×230.jpg
Chalet, L. (2015) CSR Available at: http://thinkersconnect.com/top-tips-how-your-company-can-succeed-at-corporate-social-responsibility-csr/
Cohen-Almagor, R. (no date) Confronting the Internet’s Dark Side: Moral and Social Responsibility on the Free Highway. Cambridge University Press, 2015.
Dans, E. (2015) VW Available at: http://specials-images.forbesimg.com/imageserve/490090648/640×0.jpg?fit=scale
Dell (2016) in Wikipedia. Available at: https://en.wikipedia.org/wiki/Dell
Friedman, M. (no date) Milton Friedman quote. Available at: http://www.azquotes.com/quote/521326
Marinucci, R., Manager, G., p, F.S. and Italy (2007) Profit and cash flow explained. Available at: http://www.steverrobbins.com/articles/profit-and-cash-flow-explained/
Matteson, M. and 2016, C.M. (2016) Business ethics. Available at: https://philosophia.uncg.edu/phi361-matteson/module-3-social-responsibility-professionalism-and-loyalty/corporate-social-responsibility-and-the-triple-bottom-line/
McDonalds (no date) Available at: http://healthyarabella.com/wp-content/uploads/2016/08/mcdonalds-olympics-1.jpg.
Slaper, T.F. (no date) The triple bottom line: What is it and how does it work? Available at: http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html