Corporate Social Responsibility

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Corporate social responsibility is the commitment of businesses to act ethically and to positively give back to society by improving economic development and quality of life of the employees, shareholders and communities. Businesses that practice social responsibility ensure that their mission and values improve the wealth of businesses and at the same time contribute to the sustainable development of the society. Corporate social responsibility is the voluntary act of a business to “contribute to a better society and cleaner environment” and it can be in the form of charity or philanthropy (Baker, Mallen 2004). For some businesses corporate social responsibility is like an investment that is vital to their success but for others it is simply pointless expenditure. Companies that contribute to corporate social responsibility have their advantages. It is very important to maintain a healthy customer relationship because they are the driving force to maximize a business’s success. Customers are the key target in developing the wealth of a business, so it is the responsibility of the business to give something back to those customers. According to Kokemuller, when a company “builds long lasting, trusting relationship with their customers,” they give back to society which in turn improves customer satisfaction. Another benefit of practicing corporate social responsibility is improved employee morale. A company’s most valued asset is their employees so when companies motivate their employees by treating them fairly they will work hard to achieve the company’s goals. On the other hand, some corporations may feel as if social responsibility is not their duty but the duty of the government. One main reason that companies find it unnecessary to contribute to social responsibility is because of the high expenses. David Vogel in his Forbes article states that

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