The Impact of Corporate Social Responsibility on Growth of Companies

Abstract

There is an upsurge of crave for ethical practices and corporate social responsibility in both policy and actions of business organizations in recent times by society and social administrators globally. This is indicative of how crucial the subject is to the very existence of mankind and the universe as a whole and calls for a further assessment of the correlation between the concept and corporate bodies. Our write-up discusses the position of corporate social responsibility in relation to core business functions of companies and whether it has an influence on the growth of organizations. Social commentators and society unambiguously agree that the main causative factors for social problems like global warming, epidemics, wild fires, flooding and environmental degradation are the repercussions of organizational activities and therefore expect that organizations should be at the fore-front in the effort to combat these multifaceted issues. Companies have however maintained the view that corporate social responsibility is not relevant to their main mandate and only see it as a favor done to society. Our study debunks this misconception and demonstrate that the place of corporate social responsibility and ethical practices in business organizations is not just a philanthropic phenomenon but has relevance to core business functions and impacts on performance and growth. Our study also discovered that going beyond ethics in the operations of a company to engage in direct community development activities increases the effect of social responsibility on the fortunes of the company.

Keywords: Corporate Social Responsibility; Growth; Corporate Responsiveness; Corporate Ethics; Philanthropic Phenomenon