International Conference On Corporate Social Responsibility: Cost-Effectiveness, Benefits And Sustainability

Performing Corporate Social Responsibilities

Describe about the International Conference on Corporate Social Responsibility?

For a profit earning organization the ultimate object is to earn profit in the business to enhance the capital of the organization. For that purpose the main motive of the organization is to get success in the business. But for those organization which are already very successful and earning the profits to the anticipated level, the ultimate object to get success in the field of sustainability. Apart from that every organization of the corporate world has some responsibility towards the society; these responsibilities are mainly emphasized upon the large organizations of the corporate sector. Performing these social responsibilities is not merely an act of the organization but it is an important task that is to be done by the organizations by themselves. By way of performing these social responsibilities the companies not only ensure the welfare of the society but also make sure a step towards the sustainability of the company (Jones, 2012).

Sometime it is noticed that the companies of a corporate sector jointly performs their duties towards the social phenomena but though it is quite helpful for the social welfare but it does not ensure sustainability unless those companies comes under a same roof. For the purpose of achieving sustainability all the companies should be collaborated together to get higher level of endeavor and achievements. A company in respect of the corporate social responsibilities incurred a good amount of money from the profit of the company, it may be very good from the social point of view but from the point of view of the business the organization should look after what the company is getting in against such expenses incurred by the company. Here the main object of the company is to achieve sustainability in relation to the business of the company. Only by way of sustainability the organization may get the long term goals of the company. Sustainability is not a matter of shorter period but it deals with the longer terms of the organization (Hunnicutt, 2009).

It denotes various facts relating to the cost effectiveness in relation to performing the social responsibilities by a corporate entity.

In relation to performing any of the corporate social responsibilities there is a huge cost is involved, as at the time of making any contribution the company has to do it in a large prospect. It includes the complete social phenomena within a particular territory or among a particular class of the society (9th International Conference on Corporate Social Responsibility, 2009). In this regard the management authority of the concern company has to make a proper plan in respect of the cost of the corporate social responsibilities, this plan have to be very specific depending upon the circumstances and other various relevant factors like type of the welfare undertaken by the company, government policies, current position of the organization, principals of the concern company and many other factors that are also related with this concerning subject matter. Cost of performing the CSR is very relevant with the in the organizational affairs of the company, it relates with the financial structure as well as the budget of the company, but there is very less scope from the part of the company to show these expenses in the balance sheet of the company where the actual financial scenario of the organization reflects, but these expenses must be recorded within the books of accounts of the company. In terms of executing prearranged plans of the company in relation to CSR, the organizational structure of the company have concentrate upon the long term goals of the company and it also taken into consideration that the amount they are going to incur in the performance of the corporate social responsibilities are enough to accomplish the goals of the company in long term motions or not, if it is enough then the organization have to look after the implementation of these plans. The benefits a company may get by performing social responsibilities as to its expenses incurred by the concern company (Mallin, 2009).

Benefits of Corporate Social Responsibility

For a corporate organization it is not immense to bear the expenses of any particular work and do not desire to get back anything in return. The corporate entities by performing their corporate social responsibilities has to bear a good amount of expenses and the organization of any profit earning company does not permit it to do so without anything getting back in return. Hence, in performing the social responsibilities it is very essential for the organization of the concern company that what kind of benefits the concern company is getting back in return of such expenses, mainly all the profit earning companies desire some sought of benefits against the performance of their social responsibilities. Cost effectiveness in the performance of social responsibility plays a major role in the organization as well as the social phenomena (O’Faircheallaigh and Ali, 2008).

The main and foremost benefit desired by the corporate company by performing their social responsibilities is sustainability. It is a long term prospects from the part of the company. When a profit earning company is going well and the ultimate object of the company that is earning maximum amount of profit is accomplishing in a good manner then the company’s one of the main object becomes sustainability, by way of this the concern company would be able to keep the business going on and profits are to be coming in the same manner as it is coming now. Sustainability is a broader prospect it is very much essential in the fulfillment of the long term goals of the concern company. Sustainability makes the company enable to strengthen the roots of the business in the future aspects as well. The companies in respect performs their social responsibilities in various problematic fields of the nation like education, treatment of highly dangerous issues and many other problems of the society that depends from one country to another country. Benefits of the company is very essential in relation to the performance of social responsibilities especially the responsibilities includes financial aspects (Gray, Coates and Hetherington, 2013).

There is a deep relation among the cost of the CSR and the benefits that the company is getting by performing such social responsibilities. From the business point of view every profit earning company desire something to get in return out of the incurred expenses. The basic relation among these two subject matters of a company is to adhere to some benefit with the organization of the company and to some extend to the society as well.  It provides a great level of sustainability to the organizational structure of the company. Apart from the benefits of the company by performing social responsibilities the ethical prospect of the management is also gets furnished (Macdonald and Marshall, 2010). Society is the main source of income for the business entities, whether actively or passively society plays a very important role in the growth of a company, every organization of each and every company gets a lot of benefits as to their business from the society, so from the ethical point of view it is quite natural that the company should perform some of their duties towards the society. If the society gets benefited then the goodwill of the concern company shall also be increased. In this theory it is specified that the company is earning from the society so it is also necessary from the ethical point of view that the company should return some of the part out that the company has earned from the society.  The relation of the factors like cost and benefits are very important in the field of corporal sector and for the concern company also in determining the principals of the company in relation to social responsibilities (Petrovic-Lazarevic and Lazarevic, 2009).

A failure of performing CSR by a company may cost it a huge loss in the social phenomena, apart from that ethical dilemma shall also be there if the fails to perform it. Failure of performing corporate social responsibilities will damage the scope of the concern company as to the factors relating to sustainability. For the purpose of achieving sustainability every profit earning organization must perform adequate social responsibilities. The failure of performing CSR imposes a negative impact upon the organizational structure of the company; it also hampers the goodwill and reputation of the company in social phenomena (Murray and Dainty, 2013).   

Conclusion:

After the above discussion it can be summarized that for a profit earning company earning maximum profit should not be the ultimate object as every organization has some responsibilities towards the society, from the society every organization get benefitted, so from the ethical point of view it is required from the part of the companies that they should perform their social responsibilities to a good extend and from the point of view of a businessman it can be gathered that by performing the social responsibilities of a company not only ensure the welfare of the society at a large but it also helps to the company for attaining sustainability. Performance of corporate social responsibilities makes sure for a corporate entity that the company will be able to get long term benefits and the future goals shall also be adhere to in this regard (Petrovic-Lazarevic and Rose, 2006). 

References:

9th International Conference on Corporate Social Responsibility. (2009). Social Responsibility Journal, 5(4).

Gray, M., Coates, J. and Hetherington, T. (2013). Environmental social work. Milton Park, Abingdon, Oxon: Routledge.

Hunnicutt, S. (2009). Corporate social responsibility. Detroit, MI: Greenhaven Press.

Jones, S. (2012). Contemporary Issues in Sustainability Accounting, Assurance and Reporting. Bradford: Emerald Group Pub.

Macdonald, K. and Marshall, S. (2010). Fair trade, corporate accountability and beyond. Farnham, Surrey, England: Ashgate.

Mallin, C. (2009). Corporate social responsibility. Cheltenham: Edward Elgar.

Murray, M. and Dainty, A. (2013). Corporate Social Responsibility in the Construction Industry. Hoboken: Taylor and Francis.

O’Faircheallaigh, C. and Ali, S. (2008). Earth matters. Sheffield, UK: Greenleaf.

Petrovic-Lazarevic, S. and Lazarevic, V. (2009). Corporate social responsibility in the Australian building and construction industry. [Clayton, Vic.]: Monash University, Business and Economics.

Petrovic-Lazarevic, S. and Rose, L. (2006). Does corporate social responsibility in preserving a healthy environment improve the competitiveness of the Australian construction industry?. Caulfield East, Vic.: Dept. of Management, Monash University.