The gaining momentum of CSR activities is evident from the fact that many mergers and acquisition dealings are also viewing investments in such activities as a factor for consideration prior to finalising the deal. Despite such growth in the value of CSR activities, the question as to why managers find it important to undertake these activities and whether there is any need for engaging in these activities apart from maintain good public image (Font et al., 2012). There are multitude of problems in the business world which include accounting frauds and corporate irregularities and graver concerns like environmental issues and social obligations. In this regard, the paper discusses the importance of engagement of companies in a socially responsible behaviour and also illustrates reasons behind non engagement of few organizations in the same. The paper discusses evidence of non compliance and lack of belief in CSR initiative in firms and concludes in discussion of relevance of such CSR initiatives in today’s world. Importance of Engaging in a Socially Responsible Behaviour CSR reporting that are now being mandated in firms by various controlling bodies are an attempt to legalise the concerns business activity while making it comply with various environmental, social and ethical issues. It is argued that voluntary as well as compulsory CSR reporting ensures competitive advantage of firms over those who do not engage in CSR reporting (Mahoney et al., 2013). The melamine contamination case of China was a shock for the entire world. It highlighted the need for investors to respond to a corporate social responsibility of companies towards its consumers. It is argued that a firm’s financial performance has direct bearing with consumer buying and selling activities and such immoral behaviours drop sales by drastic measures. In the similar way, the case of Coca Cola and Cadbury contamination brought forth an alarming situation of quality standards and norms that were practiced within the company. These events tarnished the brand name to such large extent that it required years to gain back reputation and hence sales. Hence it is critical to understand the direct linkage between CSR performance and financial results (Kong, 2012). The importance of engaging in CSR activities can also be studied in light of most important financial decisions like a merger and how it impacts the decision and impact on shareholders during such events (Deng, Kang & Low, 2013). In support of shareholder’s value maximisation in engaging in a merger, the role of CSR activity has been explained as a trust building action among the stakeholders (Jo & Harjoto, 2011). This argument thus establishes that high socially responsible firms have greater support of shareholders and stakeholders which in turn contribute towards firm profitability and long term efficiency in contrast to firms that maintain somewhat weak socially responsible image (Jensen, 2001). Evidence of dismissal of view of CSR Corporate governance requires that companies make their activities more transparent, their activities more accountable and their business more socially responsibly. It is argued that companies engage in business ethics, corporate governance and social responsibility merely to gain legitimacy in business activities and they do not really care about what possible impacts these could have on their business activity (Brennan & Merkl-Davies, 2013). According to views of Milton Friedman, social
Corporate Social Responsibility & its Relevance Today Name of of University Date Introduction The case of corporate social responsibility has emerged as a crucial factor for firms all across the globe and gained increasing importance over the past decade…
CSR is interpreted broadly as the duty of business firms to take account of the interest of a broader class of stakeholders when making business decisions and conducting business activities (Moir, 2001). To this end, a broader class of stakeholders include employees, consumers, governments, communities, shareholders, suppliers and creditors.
An organization maintains its public image through corporate social responsibility activities. This paper will support this argument by looking at the role of the CRS reports to the shareholders and stakeholders of an organization. Moreover, the paper will give the background information on the Corporate Social responsibility as well.
It is a known fact that the companies create various social problems such as, resource depletion and pollution, which negatively impacts the society as well as the environment (Moir, 2001). The increasing concerns and attention of the general public have reached this sphere which has made it almost mandatory for the organizations to count the CSR activities among their responsibilities.
This paper intends to evaluate the effectiveness of these reports in serving the above purpose as against as just mere ‘vehicles’ adopted for public relations among trading organisations. Corporate social responsibility is a common notion adopted in business models that alludes to some form of self-regulation by corporate systems.
Corporate social responsibility concerns having sufficient effect to the society by offering adequate protection to local or any other investment before considering the money invested in foreign countries. There are several ways through which an accounting professional is involved when it comes to the issues of environmental corporate social responsibility.
71). The CSR reports are meant to describe a company by showing inner circle details to sooth more investors and agitate for positive recognition from the society. On the other hand, the corporate citizenship can entail the incurring of short term costs meant to promote positive environmental and social transformation but do not have immediate financial benefits to the company.
Some of the companies prepare the reports to meet their stakeholders’ needs (Moir, 2001). Other key reasons behind the reporting are the legislative purposes, as well as, developing the brand names. For many years, companies observed environmental reporting for regulatory purposes, as well as, environmental and social issues i.e.
Corporate Social Responsibility (CSR) reports are published by many corporations, but what constitutes a CSR report is still exclusive. There are many names of CSR report such as environmental, sustainability, safety, health and community affairs report. It aims to portray the relationship between an organisation and society.
To create the green equation, several factors have to be taken into consideration such as solid waste, carbon emission and electricity consumption. The main purpose of reporting CSR is for tracking the sustainability footprint of the business and to report the same to the shareholders and stakeholders of the company.
This paper is aimed at analyzing the concept and the overall importance of corporate social responsibilities for each and every stakeholder of the company. The corporate social responsibilities of Qantas Airlines have been studied in detail to
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