3. Why CSR becomes more popular?

Companies from all different part of the world and industries are become more interested in
getting involved in corporate social responsibility. Everybody agrees that it is not only a
promising thing but also particularly desirable. CSR makes a really good commercial sense. It
is getting more popular year after year and enormous companies are participating in CSR .
There are a few good reasons why companies do it.
Many companies think that engaging in corporate social responsible can improve its financial
position. However, it is not always the case. Participating in CSR is not only a process of
making money or a vote to fulfill economic obligations. It is a special ethical request
connected with trust, responsibility, respecting others and caring. Companies have an
additional ethical obligation to take care of the community and try to help to improve it by
attempting to find a solution for many social problems such us poor wages, pollutions,
collapsing small towns1. Companies causing most of these problems have an opportunity to
take responsibility and fix them. It gives them a chance to contribute in helping their society
or even the world as a whole.
In addition, lots of companies consider participating in CSR as an opportunity to achieve
sustainability development. They treat CSR as the next part of innovation advantage for
their progress, as a tool to compete with other2. CSR gives them a chance to have more
pleased and productive employees, open a new market and what is the most important and
tempting- it can help to make a company stands out from the rest. A well-prepared and strong
CSR image can differentiate a merchandise from its competitors and can help to amplify the
brand image. It definitely helps to reinforce costumers loyalty. According to the latest
research, almost 40% of customers in USA doesnt want to buy product from the company
which has a poor CSR image.
Besides, many companies use CSR as a tool to reduce the costs of the business. By reducing
waste and recycling recourses, companies are identified with the green agenda. These help
company to save money and also are connected with ethical issues.3

4. Responsibilities to different stakeholders?

1

Boyle M.E, Boguslaw J., Business, Poverty and Corporate Citizenship; Naming the issues and framing
solutions, Greenleaf Publishing, 2007, p. 102
2
Prahaland C.K, Hammond A., Sevings the Worlds poor profitably, Harvard Business Reviev, 2002, p. 5
3
Burns P., Corporate Entrepreneurship; Building an Entrepreneurial Organization, Palgrave Macmillan, 2008,
p. 343

EEs, shareholders, suppliers/creditors, government, Customers, General Public...etc

The main concept of CSR is that companies cannot exist as isolate entities operating away
from broader society.4 CSR creates a new role not only for business concerns but also for
the other key players. It means that ethic, social and really often ecological criteria created
by CSR- must be taken into consideration in the treatment of employees, production of
products and services and operation. Responsibility connected to a various stakeholders is
called stakeholder theory. It is an idea that each of these groups is important to the success
of a business. CSR is about individual business and institutional structure as well. CSR is
giving attention to every stakeholder of the company- employees, customers, suppliers,
managements and even the community. According to the theory they can create something
only together even if every of them has an idiosyncratic aim.
First of all, customers have the most influential ability to change the direction of a
corporation. They are the most significant group of constituents. They expect good quality
products and prefect customer service. Every customer has a right to be informed and should
not be deceived because of exaggerated advertisements. What is more

Companies are expected to pay their taxes and help to protect the environment.
On the other hand stakeholders, especially some of the most senior are once who are
focused on CSR and try to amend it and treat as a real important issue. The employees want
to have a security job and high wages. Nowadays, many young people are interested in
working for companies which have some awareness of social responsibility. Managers would
like to have efficient, happy workers and big profits. Suppliers want to have an abundant
business. They make business more innovative and more creative and owners expect the big
financial profits.

Corporate Social Responisibility, http://www.iisd.org/business/issues/sr.aspx