The effect of Corporate Social responsibility on company management
There is a need to understand the negative or otherwise, of the effect of CRS activities on the management performance of the companies that practice CSR as part of their activities besides the major predetermined goals. Research evidence suggest that a corporation’s socially responsible behavior can positively affect certain attitudes toward the corporation. The effect occurs both directly and indirectly through the behavior’s effect on managers and the overall corporation identification. Thus, perceived corporate social responsibility affects not only customer purchase behavior through customer corporate identification but customer donations to corporate-supported nonprofit organizations. There has been a conceptualization of corporate social responsibility (CSR) that emphasizes the role and potential contribution of marketing discipline and depicts CSR initiatives as the actions undertaken to display conformity to organizational and stakeholder norms. There discuss managerial processes needed to monitor, meet, and even exceed, stakeholder norms, analysis explains how CSR initiatives can generate increased stakeholder support.
In the face of marketplace polls that attest to the increasing influence of corporate social responsibility on consumers’ purchase behavior, implicate both company-specific factors, such as the CSR issues company chooses to focus on and the quality of its products, and individual-specific factors, such as consumers’ personal support for the CSR issues and their general beliefs about CSR, as key moderators of consumers’ responses to CSR, mediating role of consumers’ perceptions of congruence between their own characters and that of the company in their reactions to its CSR initiatives that CSR initiatives can, under certain conditions, decrease consumers’ intentions to buy company’s products.
Researchers have reported positive, negative and neutral impact of corporate social responsibility for instance, inconsistency may be due to flawed empirical analysis demonstrate particular flaw in existing econometric studies of the relationship between social and financial performance. These studies estimate the effect of CSR by regressing firm performance on corporate social performance and several control variables and that CSR has a neutral impact on financial performance. Although brand theorists suggest that what a person knows about a company can influence perceptions of the company’s products, little systematic research on effects exists as there focus on company’s capabilities for producing products, that is, corporate ability associations, and the other focuses on the company’s perceived social responsibility, that is, corporate social responsibility associations. CSR associations may have different effects on consumer responses to products, products of companies with negative associations are not always destined to receive negative responses. The need to outline supply and demand model of corporate social responsibility and that firm’s level of CSR will depend on its size, level of diversification, research and development, advertising, government sales, consumer income, labor market conditions and stage in the industry life cycle. There is an ideal level of CSR, which managers can determine via cost-benefit analysis, and that there is a neutral relationship between CSR and company management.
Corporate Social Responsibility assumes empowerment in every organization’s resources and diverse roles to make known of the business practices and principles. This assignment will be dealing to comprehensive discussions and analysis in certain perspectives relating to CSR ways in connection to leadership, how organization choose leaders and what choices are best fitted to CSR effectiveness. There will also be discussion on the CSR in lieu to integrating as well as recognizing several change management, the process deemed valuable as put within CSR stance and determining some related theories and proponents to gain additional knowledge of CSR, such conceptual utilization of some organizations with related points to leadership, formation and choice of leaders and knowing processes towards change management. There will be some case studies of CSR in organizational context and have comprehensive explanation of specific reasons why CSR is essential to the overall structure of the organization, mainly pointing on the business side.
Indeed, the foundation of organization involved in such business functions and its CSR success domains and that success in business not just happen to be in operations influence over various products and services but, a business can’t fully exercise the overall stature of the business without the presence of CSR or what is known as the ‘Corporate Social Responsibility’, as defined by Waldman and Siegel. Waldman (2006. p. 533) indicated that, “firms must have visionary leaders who are able to “connect the dots” and understand how various stakeholders, and the satisfaction of their needs, represent interrelated challenges. For example, the strategic management of human resources is related to customer satisfaction, and it is essential for firms to attempt to understand and deal with this connection”. The importance of CSR will imply that corporate leaders can act more socially responsible without using large expenditures of corporate funds. The organizations adapting to the process of CSR are ideally committed to the production of safe, reliable and innovative services in from within changes that are strategically involved into the organization’s application of the CSR.
The social responsibility amiably determine strategy in management upon mapping business impact and leadership effects within the realm of certain economic as well as environment emergence. The presence of success into the CSR ways have to be well motivated from within some motivation factors such as for example, good leadership imposed by the executives and the organization receives motivation due to leadership being known, from within there outcomes into socially responsible decision patterns (Master and Heresniak, 2002). Thus, having effective corporate leaders for instance, managers as leaders have moral obligation to pursue profit and engage in social responsibility only when there is precise investment, leaders are driven by ample sales and profits and from having good CSR ways upon maximizing change and behavior modification. Organizational leaders are amiably engaged into the CSR from within strategic choice, also there astounds some ability to charge a premium price for a particular business product as well as selecting qualified workers does assume potentials for CSR, to be part of organization domains.
There is known relationship of CSR, into choosing of leaders and change, the organization might utilize CSR because of the fact that CSR integrates business and the society in general. The need to have useful business areas into such people management, and manpower formation, avoiding negative situations towards change and leadership. Moreover, Milton Friedman contributed to the creation of such CSR theory by asking questions like, ‘should organizations take ample responsibility for certain social issues?’ (Kok et al., 2001, p. 286). There such argument as pointed that, the only CSR, social responsibility of the organization is to increase profits by legal means, so transformational as well visionary leaders can effective. Consequently, there is usage of change resources as the CSR strategy can have ample profitability or increase the product prices of business (Pinkston and Carroll, 1996). For instance, the CSR values at Siemens have demonstrated attention towards continuous improvement of employees, allowing human resource to embrace change in its management and the formation of various leadership styles, through CSR change and leadership success, organization utilizes more CSR ways upon completing spontaneously in the marketing stature, there is providing of social responsibility dominance from wherein such related points are utilized by the organization for their CSR processes.
References
Kok, P., T. V. D. Weile, R. McKenna and A. Brown: 2001, ‘A Corporate Social Responsibility Audit within a Quality Management Framework’, Journal of Business Ethics 31(4), 285–297
Master, M. and E. J. Heresniak: 2002, ‘Ethics at Work: The Disconnect in Ethics Training’, Across the Board 39(5), 51–52
Pinkston, T. and A. Carroll: 1996, ‘A Retrospective Examination of CSR Orientations: Have They Changed?’ Journal of Business Ethics 15(2), 199–207
Waldman, D.A., Siegel, D. and Javidan, M. (2006) ‘Components of transformational leadership and corporate social responsibility’, Journal of Management Studies 43
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