The corporate social purpose has significantly grown over the recent years, with most companies practicing a certain form of social purpose. More so, there has also been an increased interest in such projects by mainstream investors with the social purpose of having a higher chance of creating a competitive advantage (Silverstein, 2018). The purpose of corporate social responsibility is mainly about the ability of any firm or organization to deliver positive social, environmental, and economic impact through their business activities. On the other hand, firms are now more than conducting philanthropic activities and paying more attention to human rights and sound practices when performing their business activities.
Corporate social responsibility has expanded and is now more inclusive of customers and the employees, suppliers, and the surrounding community. More so, these projects require firms to make short and long-term decisions with all the parties in mind. However, in states like the U.S, it is difficult for some companies to engage in corporate social responsibility as the firm’s primary responsibility if the shareholders (Silverstein, 2018). Therefore, companies need to indicate that pursuing the benefits of Social responsibility also befall the shareholders. Corporate social responsibility is beneficial to the company in several ways.
The company will increase its recognition, become more competitive and enhance a good reputation for the firm. On the other hand, corporate social responsibility activities are often costly. Still, if well-structured, they can strategically a company’s position in the eyes of the consumers, employees, and the community. According to this article, the triple bottom line, which included profit, people, and the planet, are widely considered. Most of the corporate social responsibility is focused on the individuals who are part of the activity and ensure that ethics align with other protocols. Additionally, having a competitive advantage increased the company’s gains overall, with the social and environmental concerns also enhanced.
Silverstein, A. (2018). Finding Value in Corporate Social Purpose: The Role of the Board. The Wall Street Journal. https://deloitte.wsj.com/cfo/2018/08/17/finding-value-in-corporate-social-purpose-the-role-of-the-board/