The Benefits of Corporate Social Responsibility (CSR)

Corporate social responsibility (CSR), which was first suggested in the late 1960s, is an idea to urge companies not only to focus on maximizing the profits of shareholders, but also the interests of other stakeholders like suppliers and employees (Wong, 2014). Issue about whether adopting CSR can enhance companies’ performance is still controversial. However, it is becoming more and more popular for companies to carry out different types of CSR measures since it is being widely believed that practicing CSR is beneficial to corporations’ performance. In this essay, aspects including financial performance, employees’ commitment, community relation and companies’ efficiency, which are essential components contributing to organizational performance, are examined to evaluate the influence of CSR. It is suggested that corporate social responsibility generally helps bolster companies’ performance. First of all, financial performance is probably one the most important parameters in determining the success of a company. Shareholders are expected to earn profits when they decided to invest in particular corporations. If adopting CSR practices can improve the financial performance of firms, then it is suggested that CSR is beneficial to the performance of companies. Several studies have revealed that companies’ financial performance can benefit from practicing CSR. McGuire, Sundgren and Schneeweis (1988) claimed that CSR practices helped reduce firm risks by ways like building upShow MoreRelatedWhy Csr? The Benefits Of Corporate Social Responsibility1654 Words   |  7 PagesQuestion #1: Forbes Magazine Entrepreneurs segment published an article â€Å"Why CSR? The Benefits Of Corporate Social Responsibility Will Move You To Act†. 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