Explore the Benefits of Corporate Social Responsibility, and Why Organizations Seek to Promote and Demonstrate Sustainable and Ethical Business Practices.

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Corporate social responsibility (CSR) has become an increasingly important issue for businesses that takes into consideration the actions and decisions of the business and the resulting financial, environmental and social impact. (NSW Government 2013) As stated by Lord Holme and Richard Watts, corporate social responsibility is “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.” (Holme L., Watts R. 2013) Rather than focusing on just donating money or on recycling efforts to create a positive persona, CSR focuses on managing the relationships between employees, customers, suppliers and stakeholder to make a positive impact on society while still making a profit. (Whitman M. 2013) The implementation of CSR strategies can result in many benefits and costs to businesses. This paper will focus on these costs and benefits and will also discuss why businesses seek to demonstrate and promote such sustainable and ethical practices. Organisations who practice Corporate Social Responsibility do so with the aim of gaining a better reputation and brand image. As was discovered in recent studies, there is a positive relationship between customers who are increasingly aware of CSR activities and their purchase aims. (Lee K., Dongyoung S. 2010) Therefore, as consumers become more aware of Corporate Social Responsibility and the methods organisations implement to achieve these aims, the more aware they become of organisations with which they wish to interact. As organisations advertise their efforts or make customers aware of their CSR strategies, they can expect from the above mentioned study that their reputation with the customer will improve. This reputation may also see an increase in customer

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