Corporate social responsibility (CSR) is a controversial subject that continues to attract a lot of attention – from those who argue that the whole issue is irrelevant to business (Freeman and Liedtka 1991), to those who see the relevance, but think it is a bad idea for business (Friedman 1962), to the vast array of writers who think that CSR is of strategic importance to business ( Asongu 2007) ,
"C-suite executives" — such as CEOs, CFOs and COOs — identified deep-seated cynicism and scepticism about whether CSR was anything more than window-dressing and public relations puffery.
The reasons given for this accusation are that, generosity with shareholder’s money is not philanthropy, it is theft. (Hopkins 2007)
It may also impose costs on companies that are partly hidden and hard to measure. Freidman is the chief exponent of the theory that companies’ responsibility is to make profits, not decide how, or how much, the environment should be protected. His oft quoted pronouncement that ‘social responsibility of business begins and ends with increasing profits’ implies that social issues should be best left for anyone but businesses. The critics say that social welfare is the duty of the government because governments are more than capable, either individually or collectively, of achieving social aims through legislation.
On the other hand, Sir Mark Moody Stuart, Chairman American PLC (2006) said that when people started to realise how revenue was mis- spent or stolen over long periods by government, they turned to the corporate and asked ‘you made money, but there is little in the country to show for it.’ According to Cohen (2003) there is an increasing interconnectedness between business, government, and the non-governmental sectors of society. The walls between the three are blurring. And so, the welfare of the communities also became the responsibility of the corporate.
The CSR movement in 60’s showed companies that their responsibilities do not lie purely in making profits, what is important is how profits are made (Hopkins 2008). Today companies are using a more strategic approach in their CSR efforts. Significant research and preparation goes into planning CSR strategies, determining where a company can make the most effective impact.
CSR has created a win –win situation between the society and the corporate sector. The companies get free publicity for their initiatives. Research proves it that companies especially engaged in environmentally friendly initiatives have reduced the cost of their operations.eg. Cisco. There is also a rise in socially responsible investment. (Kotler 2005). CSR strengthens the brand value of the company and therefore workers like to work for the company and customers tend to be loyal to the brand. (Pringle & Thomson 1999).
And finally what every public relations practitioner /department dreams of, is when the potential advertising cost of a company is reduced as a result of free publicity.
What does the reader think?
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