Why Companies Must be Ethical and Morally Responsible to the Community Around Them
By Space Coast Daily // June 22, 2021
CSR or corporate social responsibility is a concept which states that a business should consider the interest of its community rather than just focusing on increasing its profits.
The practice of CSR is subject to much debate and supporters also argue that it is a sign that ethical business leaders accept that there is more to business than just money-making.
When a business is doing CSR not only the society benefits from the business but it could lead to opportunities for the company as well. Some people argue that CSR distracts a business from its main role of business activity, which is using economic resources as efficiently as possible, and by adopting CSR a business is having less to spend on expansion and less to pay out owners.
It is also suggested that CSR is a form of window dressing or public relation spin to make business activities appeal to society friendly but, in reality, they are harming society. If companies are found exploiting social responsibilities, then it can go against them and it might backfire.
Meeting CSR can be expensive in the short run which might reduce profits whereas in the long run the marketing, public relations, and employee motivation benefits might pay for themselves and higher profits.
However, it also creates a good brand image meaning brand loyalty will also increase resulting in higher revenue and retained profits. Moreover, following such practices will leave a positive impact on the government which will be beneficial for the future contract you might get from the government.
Organizations like Global 360 follow practices of operating in an ethical and morally responsible way, such as making sure their employee’s happiness is a priority, as they think that business can’t be successful without the hard work of its employees.
Here are some of the reasons why businesses need to follow CSR:
Good business reputation
When you’re following CSR, your brand image will be high in the eyes of the people as they’ll feel that the business also cares about what they like and value. It makes your customers feel that they’re buying the service from someone who values them instead of valuing their profits only.
The business might face a loss in the short run but in the long run, it will have a very appealing brand image causing people to switch towards your business, and as a result, revenue will increase drastically.
More staff motivation
One business following CSR means that they also treat their employees very well which will make them feel a part of the organization. This will give them the motivation to work hard and achieve their given goal.
This is also to attract future recruits who will know that the company’s only goal is to make the community a better place by focusing and working hard on it.
Many companies don’t do this but, keeping your employees is one of the main reasons why a business is successful because if the employees aren’t happy, they won’t work efficiently meaning production will decrease overall causing a shortage in the business.