Corporate Social Responsibility

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CSR activities results in another important benefit which is building a strong reputation and developing legitimacy which means that a firms is seen as a legitimate one when it sets its goals in a way they fit in with society’s ones; by doing so, they build and maintain beneficial relationships with their stakeholders, and all of this can be achieved by using two major tools. The first one is the corporate philanthropy that plays a role in gaining a competitive advantage, it can do it as well in building reputation and legitimacy. Companies who have a positive impact on their society and help with charitable contributions build a powerful brand image that reflects the company’s values; eventually, the company’s brand name will be stuck in people’s minds or what we call the positioning strategy (M.Porter, E. Kramer, and R.Mark.2006.pp.178_192). The second tool that allows firms to have a certain legitimacy in the eyes of different stakeholders is the disclosure of information and the transparency policies. Companies usually do reporting which means they make reports on a monthly or an annual basis containing information concerning the company’s social, economic, and environmental performance, this will give investors a clear idea about either to invest or not as well as they will be sure that their money is in safe hands since firms’ policies are transparent. So, they are perceived as trustworthy (T.schopp, Daniel; Nastanski, Michael.2014.pp.147-162).

The last corporate benefits of CSR is looking for winer-winer results based on a co-operative creation of value which means that firms should work in cooperation with their stakeholders by taking their interests into consideration to create a one big unit that shares the same interest and which can create and transfer the firm’s value; and this goal can be achieved by adopting two main policies. First, the charitable contributions to some social actions especially education. This would be helpful in a way it contributes to raise a well-educated generation and improve the quality of human resources of the society in which the firm is operating, who represents the future stakeholders of that firm, this concept is known as turning a social problem into a corporate opportunity. Second, the stakeholder satisfaction by involving them in the company’s decision making and policies, putting them in the center of interest, and responding to their needs and demands; with no doubt, this will allow companies to prosper and increase their profits (Korschun, Daniel; Bhattacharya, C. B.; Swain, 2014, pp. 20-37).

After having seen all the different corporate benefits and potential of CSR and regardless its social benefits, it is an evidence that companies should involve themselves in the CSR policies and practices for their own interest, and it has been shown that firms can us CSR and adapt it the area they are welling to improve ; after all, CSR seems to be the one and only strategy that can be used by firms to survive in a market characterized by a sustain increase of competitiveness and take a step further towards success .

RFERENCES

- T. Smith, “Institutional and social investors find common ground. Journal of Investing, 14, 2005, 57–65.

- M.Porter, E. Kramer, R.Mark. Harvard Business Review. Dec2006, Vol. 84 Issue 12, p78-92.

- B.Seifert,A. Morris,B. Sara,R.Barbara (2003). “Comparing Big Givers and Small Givers: Financial Correlates of Corporate Philanthropy.” Journal of Business Ethics, 45(3): 195-211.

- Tschopp, Daniel; Nastanski, Michael. Journal of Business Ethics. Nov2014, Vol. 125 Issue 1, p147-162. 16p

- NEWMAN, GEORGE E.; GORLIN, MARGARITA; DHAR, RAVI. Journal of Consumer Research. Oct2014, Vol.41 Issue 3, p823-839.

- Korschun, Daniel; Bhattacharya, C. B.; Swain, Scott D. Journal of Marketing. May2014, Vol. 78 Issue 3, p20-37.

- A.Calabrese, R.Costa, T. Menichini. Knowledge & Process Management.Jan-Mar2013, Vol. 20 Issue 1, p50-58