Corporate social responsibility (CSR) is a growing subject that is getting more attention and has a significant effect on an organization
YesterdayNov 25 at 8:40pm
Corporate social responsibility (CSR) is a growing subject that is getting more attention and has a significant effect on an organization. Several studies have shown encouraging CSR results, such as 75% of consumers believe a company should be socially responsible or that 70% of chief executives believe that CSR is vital to their organization (Casio & Aguinis, 2019). Results like this emphasize the importance of CSR and its effects on an organization. However, traditional thought is that CSR can work against company profits and the interest of shareholders.
Alex Edmans tackles this train of thought in his TEDx talk. Edmans asks the question of why a business exists. He asks whether they are there to earn a profit or to serve a purpose to society. He ends his talk by answering Yes (TEDxTalks, 2015). The reason Edmans gets to this conclusion is that it isn’t an either-or question. When looking at the long-term, a company exists to do both because by serving a purpose in society, they make a profit.
You can break down human resource management’s efforts towards organizational social responsibility into five commitments. These are the commitment to employees, marketplace, ethics, environment, and community (Murphy, 2020). Breaking a company’s efforts down into these categories creates a focus and provides direction into the organization’s programs and goals.
A company that is an excellent example of practicing corporate social responsibility is the technology networking company Cisco. They are an example of an organization that is committed to its employees. One employee benefit they offer is three days off for new grandparents to assist their kids with the new grandchild. Their campuses also offer complimentary anxiety and depression screening, yoga, and meditation classes (Fortune, 2020). These employee benefits are examples of ways organizations can practice CSR in their commitment to improving their employees’ lives.
Cascio, W. F., & Aguinis, H. (2019). Applied psychology in talent management (8th ed.). Retrieved from https://www.vitalsource.com (Links to an external site.)
Fortune. (2020). 100 Best Companies to Work For Cisco. Fortune. https://fortune.com/best-companies/2020/cisco/ (Links to an external site.)
Murphy, G. (2020, Aug 14). Why CSR Is Good For The Heart Of Your Business. Forbes. https://www.forbes.com/sites/forbescommunicationscouncil/2020/08/14/why-csr-is-good-for-the-heart-of-your-business/?sh=1a1b8b2a7bad (Links to an external site.)
TEDx Talks. (2015, July 9).
The social responsibility of business | Alex Edmans | TEDxLondonBusinessSchool (Links to an external site.) (Links to an external site.)
[Video File]. Retrieved from
https://youtu.be/Z5KZhm19EO0 (Links to an external site.)
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