THE IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY TO THE GROWTH OF AN ORGANIZATION
FIRST CHAPTER
INTRODUCTION
1.1 BACKGROUND STUDY
The broadest definition of corporate social responsibility focuses on what the relationship between multinational firms, national governments, and individual citizens is or should be.
Locally, the term focuses on the link between a business and the community in which it resides or operates. Another term addresses the relationship between a company and its stakeholders.
Corporate social responsibility (CSR) has been a topic of discussion since the 1950s. According to the most recent research by Secchi (2007) and Lee (2008), the meaning and practice of CSR have evolved. The traditional understanding of CSR was narrowly confined to philanthropy, and subsequently the emphasis switched to business-society ties, specifically referring to the contribution that a corporation or business made to alleviating societal problems. Early in the 20th century, social performance was correlated with commercial performance. Oliver Sheldon (1923, cited in Bichta, 2003), however, encouraged management to take the lead in elevating both ethical standards and justice in society via the ethic of economizing, i.e. economize the use of resources under the guise of efficient resource mobilization and utilization. In doing so, businesses generate revenue and improve living conditions.
Modern CSR (also known as corporate responsibility, corporate citizenship, responsible business, and corporate social opportunity) is a concept in which business organizations take responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities, and other stakeholders, in addition to the environment. This requirement demonstrates that organizations must comply with the law and voluntarily undertake steps to promote the well-being of their employees and their families, as well as the local community and society.
CSR simply refers to the methods through which corporations and businesses conduct business in an ethical and sociably responsible manner. CSR can include a variety of activities, such as partnering with local communities, making socially responsible investments, cultivating relationships with employees, customers, and their families, and engaging in environmental conservation and sustainability efforts.
1.2 STATEMENT OF THE CHALLENGE
The growth of a corporation is determined by the input of its customers, employees, stakeholders, and the surrounding environment. It has been found that the vast majority of businesses fail in their corporate social responsibility.
Most organizations leak exhaust gases from their production processes into the environment, so endangering the community. Nonetheless, it is the organization’s job to place a premium on the safety of the host community. Community development is one of an organization’s social duties; it is supposed to contribute back to its host community.
Employee contributions determine the productivity of any organization. The organization’s productivity will suffer if its employees are treated unfairly. Employee welfare is one of the social responsibilities of an organization. The welfare of employees should be of utmost importance to the management of organizations, yet the majority of organizations treat their employees unfairly.
The volume of a company’s sales is contingent on the patronage of its customers. The proper and respectful treatment of customers is required. It is the social obligation of a business to respect its customers. This study investigates the significance of corporate social responsibility for the development of organizations.
1.3 OBJECTIVES OF THE RESEARCH
This study’s overarching objective is to investigate the significance of corporate social responsibility for the development of organizations. The particular aims are as follows:
To determine whether or not corporations fulfill their corporate social responsibilities.
Determine whether poor customer service has an impact on the growth of the organization.
Determine if unfair treatment of employees affects the growth of the organization.
To comprehend the impact of corporate social responsibility on community development.
Determine the connection between corporate social responsibility and the profitability of an organization.
1.4 RESEARCH QUESTIONS
The pertinent research questions for this study are as follows:
Do corporations fulfill their corporate social responsibilities?
Does poor business conduct toward customers have an effect on the expansion of an organization?
Does unfair treatment of employees affect the growth of the company?
What roles does corporate social responsibility play in the development of communities?
What is the relationship between a company’s corporate social responsibility and its profitability?
1.5 SIGNIFICANCE OF THE EXAMINATION
This study’s findings are applicable to organizational management. Corporate social responsibility has a significant impact on an organization’s growth.
The findings of this study can also serve as a resource for future researchers who are likely to investigate a related topic.
1.6 RADIUS OF EXAMINATION
This research is limited to the necessity of corporate social responsibility for organizational development.
1.7 LIMITATION OF THE STUDY
In conducting this study, the researchers were hampered by a lack of time, respondent reluctance, and limited resources, among others.
1.8 DEFINITION OF TERMS
Corporate social responsibility (CSR) is a business strategy that promotes sustainable development by providing economic, social, and environmental benefits to all stakeholders.
Organizational Growth: The process by which the structure of a multiagent system organization increases its number of roles and connections.
A stakeholder is a person who has an investment or interest in something, is affected by its outcome, and cares about its outcome.
Community development is the process by which community members come together to take collective action and generate solutions to shared issues.
THE IMPORTANCE OF CORPORATE SOCIAL RESPONSIBILITY TO THE GROWTH OF AN ORGANIZATION
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