Sustainable Future Business: CSR is moving from Optional to Mandatory
In the modern scenario of Business we can see that the advance technology has completely transformed the business practices. In this regards the consumer buying behavior has also changed at great extent. There are more options available for the consumers as compare to the past, therefore the factors involved in the decision making process has also been changed.
In the past, usually the buying decisions were made on the base of the quality and price of the product, however, with the advent of globalization and other technologies, the process of manufacturing become fast, to manage a business has become comparatively easy and companies could make better analysis about the risk associated with the business. In this regards, the competition has become intense and the consumer has more option to consider before making their buying decision (Seo, 2013).
Rob Stated that in the modern world, “The CSR has been moving from Optional to Mandatory” (Rob Asghar, 2015).
In this situation, it is ultimately important for the all the businesses to seriously consider the consumer demands as a major factor to increase business progress. In this aspect, the most popular and most concerning strategy that has been using in modern business practice to differentiate a company from others, is that the companies has been tending towards their Corporate Social Responsibilities and companies are considering this factor as a major part of business (Abbas Ali & Al-Aali, 2015).
Purpose of Writing
Considering this fact, the following writing attempt is to create an understanding about the Corporate Social Responsibility as a competitive advantage in the modern business world. It is propose to emphasize the companies to use the CSR in the business practice for the sustainable business growth.
What is CSR?
Before moving towards the core purpose, it is important to understand the concept of CSR. Corporate social Responsibility or CSR is based on the activities of an organization towards its stakeholders by addressing the ethical and moral responsibilities of the organization towards the employees, towards the customers, towards the society and towards the environment (Lewis, 2014).
Accordingly, Michael Hopkins describes the CSR as it is concern to the treatment of stakeholders by a business organization in an ethically responsible manner. Further he explained that ethically responsibility means to treat the stakeholder by following the international norms. In this concern he also justifies the importance of the CSR practice by a company and said that it is process to achieve sustainable business growth alongside the sustainable development of the societies (MHC, 2011).
Considering the Social Corporate Responsibilities, Carroll defined that the Social Corporate Responsibilities are divided into four categories (MHC, 2011).
Philanthropic responsibilities: It means to be a good corporate citizen.
Ethical Responsibilities: It means to be ethical and consider the obligations and in all the business strategies consider that what is right and what is wrong.
Legal Responsibilities: It does means to obey the laws as it is society’s codification of right and wrong.
Economic Responsibility: It does means to be profitable for the company, for the society and for the country as well (GAC, 2015).
MNC’s penalized by sick CSR practices In this regards, if we look at some of the multinational organizations have to face serious crises as they violated the ethical responsibilities while working in other countries. Such as Wal-Mart had been targeted by the h