Why CSR important for business Sustainability.?

 What is Corporate Social Responsibility.?

CSR become one of the key element when building an organization name or company as a brand. In one sense, the concept of social responsibility, like ethics, is easy to understand and It means distinguishing right from wrong and doing right. It means being a good corporate citizen and the formal definition of corporate social responsibility is management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as the organization (Groomsman, 2009).

As straightforward as this definition seems, social responsibility can be a difficult concept to grasp because different people have different beliefs as to which actions improve social welfare. To make matters worse, social responsibility covers a range of issues, many of which are ambiguous with respect to right or wrong   (Sandra, 2004).

 Importance of CSR 

The most important aspects of CR to the company 

• Ethical behavior on the part of all staff
• High standards of CR 
• Transparency in corporate dealings 
• Labor practices and employee rights 
• Environmental practices 
• Equitable pricing and remuneration policies 
• Philanthropy and charitable giving 
• Ethical investments
• Higher employee morale and commitment 
• Enhancement of the brand with customers 
• Better relations with governments, local communities
• Competitive advantage over rivals

Company benefits 

• Improved financial performance
• Lower operating costs 
• Enhanced brand image and reputation
• Increased sales and customer loyalty
• Greater productivity and quality
• More ability to attract and retain employees
• Reduced regulatory oversight
• Access to capital
• Workforce diversity
• Product safety and decreased liability
• Increased business leads 
• Increased staff morale and skills development 
• Innovation in processes, products, and services
• Managing the risks a company faces
• Managing Company Ethics and Social Responsibility

Management is responsible for creating and sustaining conditions in which people are likely to behave themselves. Managers can take active steps to ensure that the company stays on an ethical footing. The exhibit illustrates the three pillars that support an ethical organization (Goldman, 2004).

1. Ethical Individuals
2. Ethical Leadership
3. Structure and Systems

     The process of building a good name among the social organization to spend a lot of money in a marketing point of view and other thing is when the organizations doing their business .as you see CSR is a one of the main major brand-building low-cost activity any organization can do. House of Maliban is a leading company in Sri Lanka that has to do the milk powder business. they bring the best milk powder variety to the Sri Lankan market is also engaged in improving the lives of the people in a different aspect. The Maliban milk villages set up in Payagala, Kanduboda, and Buluthsinghala areas in the Kaluthara District do stand as prime examples for the livelihood development initiatives of Maliban. Those villages have been set up under the Maliban Milk Abhaya Daanaya project for a long time Maliban has been engaged in rescuing milk cows condemned to being slaughtered. The rescued cows are handed over to the selected families to take care of throughout life. Accordingly, low-income families will be able to make an income out of the cows they are provided, selling the milk powder same time they achieving the company sales objective same time building a MALIBAN  as a  one of the good milk powder come with 100% full with milk, they never let the consumer to fell that its important from Australia .so with the low cost they building a good brand name, this example shows us that  CSR is how much important to the organization to keep their business sustainability.

References.

Boxenbaum, E. (2004). Institutional innovation processes: A hybridization of institutional logics. Paper presented at the annual meeting of the Academy of Management, New Orleans.

Brown, T. J., & Dacin, P. A. (1997). The company and the product: Corporate associations and consumer product responses. Journal of Marketing, 61(1). 68-84.

Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance?. Academy of Management Review, 4(4), 497-505.

Carroll, A. B., & Buchholtz, A. K. (2000). Business and society: Ethics and stakeholder management, 4th edition, South-Western College Publishing, Cincinnati.

Creyer., E. H., & Ross, W. T. (1997). The influence of firm behavior on purchase intention: Do consumers really care about business ethics?. Journal of Consumer Marketing. 14(6), 421-432