It’s a boy!

Posted on by blogeri2014

Dear community,

stock-photo-csr-or-corporate-social-responsibility-concept-and-words-tag-cloud-written-on-blackboard-107538509

 

Welcome to the blog of the young economists that will share their newly found cogitation skills about an interesting economical subject.

Todayʹs topic is CSR (corporate social responsibility), all the information that revolves around it, different examples and comments and our humble opinions about it.

For starters, what does the CSR acronym stand for?

As newbies and as young hopes, we see it as a way of managing a company, in which a company creates specific social benefits, as well as profit. So, making profit that complies with the behaviour that is within the limits of social criteria (such as morale, ethical norms) and the criteria of protecting the environment (go green!). Some of the biggest companies in the world, the cream of the crop so to say, apply this kind of business style (Kellog Company, Pepsi, 3M, Dell, Adidas, Zara, BMW, Volkswagen). It is this kind of business style that brings a huge competitive advantage in the business surrounding. All of the participants are trying to realize the goals of their companies and ensure competitiveness consistent with the ethical and ecological needs of the society, integrating the social and ecological needs into their business activities.

Examples:

Procter & Gamble: http://www.youtube.com/watch?v=gVNwhmr9xWU

Coca-Cola: http://www.youtube.com/watch?v=WcR-V3vdhG8

BMW Group: http://www.youtube.com/watch?v=EUC0AkewIXQ

 

CSR has two dimensions- internal and external. The internal dimension include employees which are comprised of activities such as investment in human capital, health and safety and also of managing changes within the organization. The external dimension refers to the surrounding of the company – local community, business partners, suppliers, consumers etc.

As it was already mentioned, CSR brings about competitive advantage. Just because of that it raises up a question – do the companies start practicing CSR so they could be more memorable in the eyes of the consumer and/or to reduce the damage that they are actually making by their own production???

Of course, every coin has two sides. What is your opinion on this? Are most companies big charity workes and ʺfriends of the nature and peopleʺ or is there some kind of secret agenda behind it all?

We are thanking you in advance on your replies and can not wait to hear your opinion.

Until next time,

Prasice

2 thoughts on “It’s a boy!”

  1. CSR has recently elevated to a higher priority for businesses both internal and external. CSR has improved the contribution of businesses to the community, but further work needs to be done. Large corporations hide behind CSR schemes to get away with profit maximization strategies.

    A percentage of the (net) profit of large corporations should be invested back into the community, e.g. oil exploration companies should give a larger percentage of their income to the local community and train/ employ local community members to work within the business.

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