Corporate Social Responsibility
Corporate Social Responsibility is the company’s internal policy responsible for any impact to the stakeholder and public. The main goal of a company to increase net profit in order to maximize shareholders’ wealth. Within the business operation, the company may create some negative impacts on some stakeholders and the environment.
Corporate social responsibility is not the requirement of any law or regulation. But they are volunteers to compensate back to the surrounding environment and public interest.
Stakeholders may expect to obtain some improvement from the company as they have generated profit from the community. However, the stakeholders cannot do anything as corporate responsibility is not the requirement of law.
Some companies may want to build a good reputation within the community, so they decide to implement corporate social responsibility. It is a very broad concept that businesses can give back to society while boosting their brands. Besides that, it helps to improve the employee morale toward the company. CSR help both employee and company build a good relationship with the world around them.
Example of Corporate Social Responsibility
Company ABC has built the library and school for the local community. Such kinds of activities are beyond the expectation of the government and community. The government expects the company to pay tax and follow the law.
By doing so, ABC has built a good reputation for the community. The resident is happy to work for the company and will support the business by using the goods or services of ABC.
The impact of Social responsibly
The company believes that CSR will help to improve their brand and people are willing to work with a good brand. It is a component of a good corporate relationship. The company will not want to have negative in society as it will impact their sale and even lead to punishment from the government.