The Importance Of CSR On Business

CSR is commonly known as “corporate social responsibility”. CSR is a form of corporate self-regulation crammed into a business model. CSR basically functions as a self-regulatory mechanism in which a business monitors and ensures its active compliance within certain regulations of code and laws. CSR is important in aiding a companies’ mission as well as a guide for to what the company stands for in face of consumers. All in all, CSR strives to provide a positive impact in all sectors of their environment such as stakeholders, employees, and consumers. CSR is good for business. After reviewing a scholarly article by Avi Sharma, I have gained some insight on how CSR affects business and it’s consumers. According to Avi, good CSR can affect the security enhancement in volatile regions by forging relationships with civil society partners. Also, investment in sustainable development has also proven that it can generate measurable returns for shareholders (Avi, 2015). Since CSR is good for business, 90% of all consumers polled across ten countries specified that they would boycott a firm that appeared to engage in irresponsible or risky practices (Avi,2015). The consumers stated this because they believe that a corporation should go above and …show more content…
According to Kotler & Lee, good CSR increased sales and market share, brand development, and image expansion. CSR can also decrease operational costs which will appeal to investors and partners. This is another example of how CSR is good for business. Since communicating and reporting CSR is beneficial, the competition between companies is also manifested in the field of establishing good business practices, reporting CSR is increasingly more done worldwide (KPMG, 2011, p.17). Even more, companies are more and more reporting quantitative and qualitative data on their positive performances (KPMG Advisory, 2010, p.3) (Zbuchea,