Discuss about the Increase Profitability And Brand Value In The Market.
In the current business scenario, the corporate responsibility has become an important element for developing business organization (Bassell, Fischer and Friedman, 2015). It has become an essential part of business ethics too. The major purpose of the business organization to increase its profitability and brand value through the CSR activities. Through the practices of corporate responsibilities, the business organizations grab the attention of the society in positive way (Singal et al., 2014). This plays an important role in the case of increasing the brand value in the market. In this study, the business ethics have been discussed by highlighting the journals and different articles. By focusing the views of different business experts, implication of Myriad genesis on CSR activities fir increasing the profitability rate has been discussed. On the other and, the importance of corporate responsibility has been critically analysed by highlighting the opinion of different authors. The benefits of CSR activities have been discussed by highlighting different international business organizations. At the end the study, after analysing the issues, it has provided recommendations so that the CSR activities can be implemented in a better way. It has also been discussed in this study that if the small business organizations want to establish their strong brand image in the market, it needs to focus on below strategies.
The term business ethics indicates the professional ethics, which are being applied in the case of examining the ethical principles in a business organization (Hollenbach, 2016). This is also very useful in the case of solving the business issues, which may arise due to inappropriate business environment. On the other hand, the corporate social responsibility is considered as an important part of business ethics that helps the organization to develop strong relationship with the citizens. By obeying the ethical principles the rate of production gets increased due to properly implementing the corporate social responsibility strategies. According to Ferrero, Michael Hoffman and McNulty (2014), the social responsibility plays an important role in the case of increasing the profitability in business organization. However, (Hansen et al., 2015) stated that profitability is not the only purpose for the organization to adopt different CSR plans. Most of the organizations focus on increasing the brand value through CSR activities. Milton freedman has mentioned about a 70 years old business man, who has discussed business development is connected with social conscience. As per this business man, the aim of every business organization is to increase the business revenue, which motivates them towards the CSR operations. Another way Crane and Matten (2016) stated that through the corporate social responsibility practices the value of stake holders gets increased.
Due to the increasing importance of corporate social responsibility activities in organizational development, in the current scenario rate of corporate social responsibility practices has increased. The awareness among people about this practices has increased. As stated by Simon Powers and Gunnemann (1972), by involving the citizen in different organizational projects, the organizations get the chance to engage with the local community. Again the author said that through this process the moral issues can be solved. Therefore, it can be clearly identified in this article that increasing value is one of the important purpose for the business developers. As its result, the brand value of the company gets increased. It has been mentioned in this study that depending on the size of the organization; corporate social responsibility activities are being influenced. If the Australian business market is analysed, it will be identified that in the case of the Tourism industry, corporate social responsibility practices have been increased. It has also been mentioned in this study that near about 99% organizations in Australia have joined in corporate social responsibility activities (Pearson, 2017).
As stated by Hansen et al., (2015), by implementing the corporate social responsibility practices the organizations will get the chance to develop environmentally friendly business policies. Due to increasing rate of competition in the market, the pressure for maintaining brand position in the industry has increased. In this situation, corporate social responsibility practices can be considered as the wise step taken by the organizations in order to grab the attention of large number of customers. Through the corporate social responsibility practices, the organizations get the chance to attract the customers emotionally. If the corporate social responsibility statistics can be analysed, it will be identified that in the year 2017, near about $17.8 billion money has been invested in the corporate charity programs (Looser and Wehrmeyer, 2016). On the other hand, it has also been identified that in the same year 500 companies have introduced gift programs for helping the citizen socially.
In the case of identifying corporate social responsibility of different companies in all over the world, it has been identified that top 250 organizations all over the world have involved themselves in CSR activities. On the other hand, Hopkins (2017) stated that as CSR activities play an important role in order to improve the brand image, therefore the large organizations invest large amount in these activities for maintaining their popularity in the business market. By following the Mydraid techniques relationship between the society and corporate world can be maintained (Malik, 2015). If the relationship can be maintained properly, this will increase the business revenue as well as the brand value of the company in the business industry. Therefore, this can be said that it can be considered as the promotional strategy of the organizations. By highlighting the Kew garden principles in the business industry, it has been identified that business organizations get affected due to different natural disasters (Grayson and Hodges, 2017). In order to cope with the extreme environment, the ethical decision making process is being used. By discussing the issues regarding Gaza conflict 2012, triple disaster and hurricane Katrina in New Orleans, the author has tried to highlight the importance of CSR activities for managing the social disaster (Cohen, 2017). It has also been highlighted in this study that how the situational impact on society increases the importance of CSR activities in an organization.
As stated by Ed Feedman, the CSR practice is a conceptual perspective. It has been mentioned by the author that religion has the higher level of impact on CSR practices (Strand, R. and Freeman, 2015). As the study has repeatedly discussed about profitability and brand value as the important part in business development, therefore, by following the Myraid techniques if the CSR activities can be developed, it will be helping the organization to achieve its goals and objectives (Malik, 2015). On the other hand, the CEO of Starbucks Howard Schultz has implemented the strategy to involve the company in social development activities (McCluney, Roberts and Wooten, 2017). In the same year the company share has increased 54%. Therefore, this can be said that by involving in the community service, the CEO of Starbucks has increased the profitability rage of the company. The philosophy of Feedman was developed by ‘libertarian idea of distrust towards the state’. By developing the stake holder theory, the author has highlighted the mission and vision of a business organization. As per the theory, in order to achieve the goals and objectives, the organization should focus on meeting the needs and demands of the stake holders.
In the above literature review, it has been identified that CSR activities have the higher level of impact on the development of business organizations. According to Grayson and Hodges (2017), the specification theory of Freedman has brought new objectives to the organizations. It has also been identified that depending on this theory, the process of decision making of an organization can also get influenced. On the other hand, Cohen (2017) argued that although the CSR activities are interrelated to the needs and demand of the stakeholders, this cannot be said that there is no other way. It has been mentioned in this study that, business profitability is highly connected with the CSR activities. As stated by Kolk (2016), through the CSR practices, the organization gets the chance to be connected with the culture and living standard of the citizen. Another way in the words of Cortina (2017), it can be said that this is a process of non-profit strategic implementation, which brings benefits for the organizations in the long run. The CSR practices can be adopted by the organisation in the case of entering the new market. Hopkins (2017) mentioned that through this process popularity in the market of the organization, increases. By providing social benefits to the citizens, the organization gains trust of them.
According to Trevino and Nelson (2016), social media plays an important role in the case of promoting CSR activities to the people. On the other hand, Strand and Freeman (2015) supported and said by getting the attention of social media, the value of the organizations in business industry increases. Another way, Kolk (2016) argued that in the current scenario the social media also impacts on organizational image in negative way. Therefore, this cannot be said that social media will always influence the brand value in positive way. From this study, it has been identified that in order to retain customers in the company. As stated by Crane and Matten (2016), due to CSR activities the investors get influenced by the organization. Therefore, this can be said that through this practices large organizations invest in the non-profit companies for encouraging the employees for volunteering their time.
Hence, from the above articles, this can be said that the organizations need to focus developing CSR practices. It will be helping it to attract a large number of customers. It has been mentioned in this study that the corporate social responsibility is being introduced in the business industry for maintaining the cultural sustainability of the organization. By maintaining social, environmental and economic sustainability, the organization will be able to achieve its goals and objectives (Bassell, Fischer and Friedman, 2015). CSR helps to maintain proper balance between these three components. It brings worldwide popularity in the organization, which helps to influence its image. However, Hollenbach (2016) stated that due to lack of support from government, sometimes CSR activities face disappointment.
Due to excessive rules and regulations in business market, the initiative of the organizations become worthless. By supporting the statement, Crane and Matten (2016) said due to increasing demands; sometimes it becomes so difficult for the companies to satisfy its customers. People are expecting too much from the organizations. As stated by Pearson, (2017), as per customers’ perspective only financial help can bring benefits to their life. As its result, they give more importance to money rather than other development. By supporting this Strand and Freeman (2015) opined that the increasing pressure from investors arising question towards organizational performance, which has become the big challenge for the companies. Therefore this can be said that in the current scenario, the CSR activity has become a popular promotional strategy adopted by the organization. Through the CSR practices, the organizations get the chance to attract large number of customers (Grayson and Hodges, 2017). Therefore this can be said that in the current scenario, CSR activity has become a big competition in the market. As stated by Cohen (2017), by developing the CSR activities in the market the company gets the chance to increase its customers; availability in the market.
Importance of corporate social responsibility in the business organization has increased. Most of the organizations have involved in the CSR activities in order to improve brand value. Through the implementation of CSR activities engagement of employees in the organization gets increased. On the other hand, this helps to develop good relationship with stake holders (Kolk, 2017). As an example the game manufacturing organization Nintendo has decided to put smile on everyone’s so that the popularity of products will increase (Nintendo.com, 2018). On the other hand, there are few organizations which have focused on women empowerment. Coca-Cola can be best example of women empowerment. Not only for the women empowerment, but also the company has invested for providing modern technology to the farmers so that the rate of productivity can be increased (Coca-colajourney.com.au, 2018).
As stated by Hollenbach (2016) Coca-Cola also has higher level of involvement in conserving the natural resource. It has helped for preserving Great Barrier Reef, which is big contribution to the company (Coca-colajourney.com.au, 2018). Through this initiative the organization has increased its popularity in the global industry. As its result, large number of customers as well as stakeholders have got attracted towards the organization. Different campaigns have been done by the company for maintaining natural beauty of Australia. This plays an important role to develop the relationship between society and corporate world. On the other hand, the study has highlighted the organization named Tesla, which is famous in the automobile industry in Australia. The company has introduced attractive compensation offers for its employees as it strongly believes that employees are the main influencing factor behind organizational performance (Tesla.com, 2018). It has been identified that the automobile manufacturing has also introduced various facilities for satisfying its customers. It has introduced carbon emission-free vehicles, which will be helping to reduce environmental pollution (Grayson and Hodges, 2017). The company has also decided to help the other organizations who want to use its patents. Therefore, this has been identified that by following this CSR strategy the organization directly helping the organizations who want to use their innovations by reducing the environmental pollution (Tesla.com. 2018).
Here the study has also focused on the organization named Wesfarmers, which has focused on human rights. It has decided to maintain its supply chain transparency to the customers (Wesfarmers.com.au, 2018). On the other hand, for reducing the rate of pollution, it has brought various changes in its waste management procedure. On the other hand, the company has focused on preserving the energy. Wesfarmers has decided to deliver the proper solution to the customers by reducing its energy consumption (Wesfarmers.com.au, 2018). Therefore this can be said that CSR activities bring various benefits to the organizations. After analysing the CSR trends in the current business industry it has been analysed that both the small and large business organizations have involved themselves in this practices.
Conclusion and recommendation
In the above study, this has been identified that the purpose of developing CSR activities in an organization is to increase the rate of profitability as well as the brand value. Therefore, the organizations are involving in society development for increasing the brand value. Therefore, this can be said that it is a wise step taken by the organizations towards business development. On the other hand, it has been identified that due to increasing rate of demands in the market, the organisations are facing various challenges in developing CSR activities. It has also been mentioned that due to different rules and regulations introduced by the government, increases the challenges or the companies in the market. Therefore, in order to manage the situation different awareness programs needed to be developed. As CSR plays an important role to increase the rate of profitability of the organization, therefore of the organization will focus on solving the issues regarding CSR implementation, this will be more beneficial for the company. This will be helping in the case of changing customers’ perspective about the company. On the other hand, it has been identified in this study that as the large organizations have involved in different CSR activities for increasing the brand value.
However, due to this reason the small business organizations are not being able to increase their popularity in the market. It has been suggested in the study that if the government develops equal regulations for the organizations, this will help those small business organizations to increase their popularity in the market. By highlighting different CSR implementation of the famous organizations, the study has also focused on how developing the CSR activities the organisations have increased their brand value in the market. If the above suggestion is followed the organization, it will help those company to establish their strong brand image in the market. It will also increase availability of loyal customers in the company.
References
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Cortina, A., 2017. Corporate social responsibility and business ethics. In Corporate Citizenship, Contractarianism and Ethical Theory (pp. 79-88). Routledge.
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