The Impact Of CSR On Economic Growth And Development

People often mistake the economic impacts and aspects of CSR with financial issues. But these aspects and aspects is not only a matter of companies being financially sound, they are also linked to the direct and indirect economic impacts that the businesses operations have on the surrounding community and on its stakeholders. (Belal Uddin, 2008) State contracts and state subsidiaries are also economic impacts and aspects to be taken into consideration. CSR has quite an impact on economic growth and development in a positive way. Ever since the economic crisis of 2008, companies are striving to be more transparent and accountable in their business ways. Companies are creating and adding value through the production of goods and services for the community and their client base. …show more content…
On the macroeconomic side of things, if a company is acting in a socially responsible manner, the economy would become a focus of attraction for production factors and other resources. (Cochran, 2007) It is essential for companies to create economic value and be able to compete with its main competitors in the market in order for them to be responsible. A better understanding and respect for local communities enables companies to be more accepted within society. Political drivers are seen as motivators for firms implementing CSR plans because the state should be encouraging and offering incentives for such behavior. Practices should be aided through public policies, actions by the community and it’s people. In return CSR behavior should have a positive influence on the political side while choosing stronger promotion and support of responsible business activities. (Škare and Golja, 2014) The following is a list of economic obligations of