Corporate Social Responsibility Csr - 1292 Words

Corporate Social Responsibility (CSR) has become imperative on business convention nowadays. CSR can be defined as the way that firms manage the business processes to generate a positive influence on society (Baker, 2004). The term CSR was appeared in the 1950s, but until 1989, Ben and Jerry’s was the first company which truly publish a social responsibility report (Coles, 2012). In recent years, numerous organizations evaluate firms on their CSR performance since the society is concerned about the CSR ranking. Consequently, business managers in various countries may treat CSR as an inevitable priority (Porter Kramer, 2006). Nevertheless, CSR is still a controversial issue in the world. Some businesses are struggling to balance corporate†¦show more content†¦This impressed a lot of their clients such as Dell. Dell extended the contract of printer cartridge recycling with IM due to IM’s CSR promises. As a result, IM’s revenues in 2011 has grown beyond 10 0% compared to the previous year Similarly to IM, Ford Pinto was winning customers surprisingly as the car performance was much better than the consumers predicted. The sales of Ford’s subcompact in 1971 nearly reached 18 percent of entire import sales (Hamilton, 2010). In contrary, it cannot be denied that companies need to pay large amount of money on environmental programme and employee trainings due to CSR. For instance, Ford Pinto produced the new vehicle very economically since it desires to improve its market position by selling cheaper cars. Nonetheless, selling these new vehicles has a significant risk as it is unsafe for customers. Ford can alter the cars’ design to reduce risk but it would cost an extra US$11 per car. They conducted a cost-benefits analysis and decided not to change. Eventually, their reputation suffered badly (Shaw, 1991; Nutt, 2002). In contrast with Ford, IM increased their reputation and had a good public relations through CSR (Edwards, 2011). These examples demonstrate businesses are faced with the dilemma of equalizing social and corporate aims because of the climbing social interest in CSR. Companies want to earn maximum profit to satisfy shareholders, whereas the community expect firms should have an ethical obligation. Thus CSR embraces