Corporate Social Responsibility and Public Relations - Assignment Example

Corporate Social Responsibility and Public Relations Comparison of Corporate Social Responsibility and PublicRelations Corporations are considered to be unique institutions being taken to act as humans. However, in the real life they are not humans since they lack the ability to think or feel. Corporations are composed of people of different characters and abilities who band together in pursuit of a common business objective. Since human beings are different in nature, organizations are also different. However, common interest is their uniting force. Therefore, despite the fact that companies can be expected to operate ethically and honestly, they lack the moralistic nature but pragmatic (Clark 2000, p. 45). This makes them focus towards increasing the shareholders wealth as their primary objective. They can achieve this through proper management of their internal affairs and profitably such as fair compensation of the workers. In addition, the corporation will be fulfilling their obligation to the society (Heath 2007, p. 44). This gives rise to the Corporate Social Responsibility (CSR) which makes the organizations mandated to ensure company’s profits, fair employees compensation, provision of safe and hygienic working conditions, quality products for consumers (Heath 2001, p. 17). Kotler and Lee (2005) define CSR as the commitment of an organization to enhance society’s well-being through discretionary business practices and contribution of corporate resources. On the other hand, Public Relations is the management role that outlines public attitudes, defines the organization’s policies, procedures, and its interests. These are coupled with the execution of an action program so as to gain public understanding and moral acceptance (Werther & Chandler, 2006, P.52). The definition of PR reveals its two primary roles. Firstly, it influences the process of decision making in the organization that relates the shareholders’ objectives with the expectations of the public. Secondly, it facilitates effective communication to the targeted audiences. Both Corporate Social Responsibility and Public Relations are interrelated, and they depend on each other having several commonalities. Most organizations set high standards for their social responsibilities but often pay very the attention on balancing their responsibilities and the internal organization’s affairs. Public Relations, therefore, plays a vital role in the organization’s decision-making process on how best to react and respond to social changes and managerial roles (Holmstrom 2004, p. 122). For an organization to have effective Social Corporate Responsibility there must be a clear communication process that relates the internal organization’s affairs and operations to the community around. A proper communication process will enhance smooth and mutual understanding between the organization and the real society (Clark 2000, p. 50). This will enable the organization to understand the societal demands and how well to treat the community around. This, therefore, will ensure that the organization operates within its ethical standards and carry out its moral obligations (Stovall et al., 2004, p. 225). It is important to note here that despite the effectiveness of a communication program in an organization the information delivered to the public must convey the true picture of the organization and its correct behavior in order for the organization to survive. This will ensure that it fulfills its promises to the shareholders and the society (Heath 2001, p. 23). To ensure that the organization achieves its Corporate Social Responsibility, therefore, Public Relations will facilitate the appropriate communication procedures to the public.Over the years as noted by Clark (2000), Public Relations has greatly evolved from its information dissemination origins into a discipline that is concerned with response to issues, accountability and social responsibility as key to organization –public relationships (Bartlett et al 2007, p. 284). From this illustration, it is therefore noted that PR and CSR are very similar in many aspects as both have the objectives of understanding their stakeholders’ environments so that the organization can respond to society’s demands effectively. It is important to note that the three main roles of Public Relations in CSR are therefore management, communication, and relationship. From these interrelationships between CSR and PR, it is therefore noted that the two are considerably similar, and CSR is just the evolved form of PR, hence for efficient functioning of any organization, both PR and CSR must be applied and their roles implemented to ensure social responsibility and improvement of the stakeholders profits (Heath 2007, p. 49). Corporate Social Responsibility as a Strategic Tool for organizations to enhance their reputations, strengthen their brands, and gain According to Mohr, Webb and Harris (2001), “CSR refers the company’s efforts and delicacy to reduce or avoid harmful effects and to take advantage of its long run positive and useful impact on society CSR verbalize the prudence of dedication on part of firms about their society and environment (Werther & Chandler, 2006, P.56). When an organization becomes socially responsible it stands a chance of improving its brand image in the perception of the consumers, enhancing consumers’ loyalty, improve their reputation and these eventually leads to the overall gain by the company. To achieve these organization’s objectives, the firm must, therefore, adopt viable strategies that will ensure smooth operations of the firm (James & Coombs 2002, p. 43). Strategic Corporate Social Responsibility settle on the exercises, companies have the assets to give to being socially responsible both to the stakeholders and the society at large. Organizations endeavor to pick what will fortify their competitive advantage. By planning CSR as a major aspect of a company’s overall business objective, associations can guarantee the benefits and ethically behave to their stakeholders because of communal and societal welfare alongside the environmental welfare (Werder 2008, p. 120). Important brand administration encourages the companies in setting, fancied cost for their item and to set up faithful clients through brand mindfulness and positive affiliation. Brand image is the impression of the item picture in the brain of the consumer (Bartlett et al., 2007, p. 290). Numerous analysts have highlighted that social responsibility exercises of a firm help the brand image. Brand image considered the esteemed organization resource on the premise of which consumers distinguish the merchandise or services of a specific firm (Stovall et al. 2004, p. 227). Over a period, the idea of brand image has changed from item discernment to buyer encounter about merchandise and services of a firm which is bolstered by firm’s societal exercises. Brand image encourages intensifying customer’s satisfaction, administration predominance, unwaveringness and repurchasing (Clark 2000, p. 53). CSR driven endeavors does not just identify with make a commitment to giving money but it discusses joining societal and good practices into business techniques that help the consumers in building a hopeful brand picture (Holmstrom 2004, p. 127). Exploration has demonstrated that socially dependable exercises of a firm enhance the brand image of the firm’s products and, in addition, the general image of the firm towards its workers and society. Organizations ought to be mindful that the consideration of social obligation targets in their strategies must be triggered not just by the yearning to construct a positive image, by operational efficiency or the possibility of competitive advantage, however as a state of building reasonable organization (James & Coombs 2002, p. 51). A careful and a keen selection of CSR strategies, therefore, will ensure that a business becomes sustainable by delivering profits to the organization. These factors that can lead to benefits to the firm through proper brand image include. Improving the corporate image and its reputation, enhance sales and customers’ loyalty, providing share benefits to the shareholders, increasing operational efficiency and gaining market competitive advantage (Heath 2007, p. 55). To the society around, CSR improves the brand image through advancing social consideration, enhancing participation in non-legislative associations, state organizations, clients, suppliers, contenders and environmental benefits by avoiding pollution and degradation (Kotler & Lee 2005, p.65). Studies found that 50 percent of purchasers say they will pay more for items offered by socially mindful organizations than to buy cheaply from companies that do not mind the social well-being of the communities. In today’s savage commercial center, social reason advertising is not simply an altruistic endeavor its great business. Therefore, organizations that are utilizing CSR as a social tool to upgrade brand image usually increase their sales margin and gains so much from their social inclusion and responsibility (Heath 2001, p. 30). Christine Jacobs in her paper defines a firm’s reputation as “a stakeholder’s overall evaluation of a company over time,’ this evaluation is made up from the stakeholder’s experience of the visible behavior of the company, as well as the images based on the company’s communication and in addition its symbolism in comparison with its major competitors (Gotsi & Wilson, 2001).” From this, the key drivers for a company’s reputation, therefore, are financial performance, vision and leadership, staff treatment, social and environmental responsibility and products and services. For these factors to enhance proper reputation of a firm, the stakeholders’ perception of the firm’s performance and behavior plays a crucial role (Holmstrom 2004, p. 122) Studies provide that CSR acts as insurance for organizations in protecting their reputation in times of crisis and during adverse occurrences. A study by Dylan Minor and John Morgan on some 500 companies revealed that those firms with higher and better CSR ratings often do well during times of crisis than those having weaker CSR. This will also enable the companies to gain highly during times of economic boom and be prepared to mitigate risks. CSR also makes firms more resilient to adverse publicity and wrong public information about the company just as they are resistant to climate changes. This is facilitated by acts such as consumer motivations thereby making them avoid the negative image of the company. This upholds the organization’s reputation (Stovall et al. 2004, p. 227). From the above illustrations, it is important to highlight that all factors constant, studies bolster the thought that CSR can effect organizations reputation emphatically, helping them enhance their notoriety with partners and be stronger in times of emergency. Still, organizations need to strive to verify partners are mindful of their endeavors and that these endeavors are genuine. This will eventually lead to the gain by the organization (Werther & Chandler, 2006, P.78). Advantages of Corporate Social Responsibility Advantages of CSR are derived from its roles in an organization’s mission and vision, its ethical standards and in its decision and planning process (Kotler & Lee 2005, p.70). One of the major importances of CSR is to enhance a company’s reputation to be considered to behave according to the moral standards of any society. Through the reputation, a company is also able to act rationally bringing about discretionary choices which results in economic benefits and societal advantages. This will improve the firm’s brand image and the general sales volume (Werther & Chandler, 2006, P.52). Another important importance of CSR is to propel the associations believability and character in public policy fights and amid the early phases of an emergency. This will help the firms to be prepared to mitigate risks and avoid adversities. Advancing an organization’s credibility will also change the consumers’ perception of the firm’s products and hence this stands a chance of luring customers into buying the company’s commodities since they will consider them to be socially responsible and ethical. The eventual advantage to the firm will be increased sales volume and hence higher returns (Heath 2001, p. 47). List of References Bartlett, J., Tywoniak, S & Hatcher, C 2007, Public relations professional practice and the Clark, C.E 2000, Differences between public relations and corporate social responsibility: An analysis. Journal of Public Relations Review, Vol.26 (3), pp.363-80. Heath, R. L 2001, A rhetorical enactment rationale for public relations: The good organization communicating well, Sage Publications, New York, pp. 31-50 Heath, R. L 2007, Management through advocacy: The future of excellence in public relations and communication management: Challenges for the next generation, Lawrence Erlbaum: Mahwah, NJ, pp. 41-65 Holmstrom, S 2004, The reflective paradigm of public relations. In B. van Ruler & D. Vercic (Eds.), Public relations and communication management in Europe, Mouton de Gruyter: Berlin, Germany, pp. 121-133 Institutionalization of CSR. Journal of Communication Management, Vol. 11(4), pp. 281-299. James, L., & Coombs, W. T 2002, Today’s public relations: An introduction, Sage: Thousand Oaks CA Kotler, R., & Lee, N 2005, Corporate social responsibility, John Wiley & Sons. Hoboken: New Jersey Stovall, O. S., Neill, J. D., & Perkins, D 2004, Corporate governance, internal decision-making, and the invisible hand, Journal of Business Ethics, Vol. 51, pp. 221-227 Werder, K. P 2008, The effect of doing good: An experimental analysis of the influence of corporate social responsibility initiatives on beliefs, attitudes, and behavioral intention. International Journal of Strategic Communication, Vol. 2, pp. 115-135. Werther, W. B., & Chandler, D 2006, Strategic corporate social responsibility. Sage: Thousand Oaks, CA Read More