The Contribution of CSR to a Firm’s Sustainable Growth
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The Contribution of CSR to a Firm’s Sustainable Growth
Over the decades, sustainable growth is an ideology that emerged as a necessity for all firms. One of the essentials of sustainability entails longevity involving the incorporated activities. Although most firms focus on optimizing the profits, it is vital to balance the trade-off in the benefits analysis (Oh et al., 2017). One of the competitive advantages obtained in the global market is the exploitation of Corporate Social Responsibility as the pillar of social value. Primarily, Corporate Social Responsibility is a sustainable phenomenon that asserts the growth of a company both under financial and social value.
Firms focus on implementing Corporate Social Responsibility mainly because it delivers both financial and social value. According to Oh et al. (2017), the firms’ sustainability engulfs significant competitive advantage development. In this case, the researcher focuses on corporate social responsibility as the pillar of the competitive advantage. The researcher indicates that integrating the dynamic elements such as commercialization of the technology is a strategic approach for the efficiency of Corporate Social Responsibility. Although companies must invest in Corporate Social Responsibility, all stakeholders must rip the benefits on a long-term basis. Therefore, the integration of the various elements enhances the effective trickle-down effect.
Corporate Social Responsibility as a multidimensional phenomenon observes the core values of the social and financial spectrum. Therefore, further studies must explore the interdependence of Corporate Social Responsibility elements with human resource management to promote sustainable growth in firms. Human resource management engulfs the establishment of policies that govern the different approaches that employees should be handled in an organization. It is a platform whose clarity and effective implementation determine a company’s competitive advantage and sustainable organizational culture. Human resource management significantly contributes to the performance of employees in attaining the company’s goals and objectives. According to Michael (2019), there are different functions of human resource management that affect an organization’s employees. These functions include performance management, planning, recruitment, selection, human resource development, compensation and benefits, employment, labor laws, and regulations. This paper seeks to assess the different functions of human resource management and the contribution to the employees’ performance in an organization. Effective human resource management profoundly determines an organization’s sustainable growth and especially on the employees’ performance rate.
Corporate Social Responsibility (CSR) plays a significant role in fostering an enhanced level of a trusting relationship, especially among the stakeholders. In a foreign country, conducting business proves difficult due to the trustworthiness of the consumers. Engaging in the country’s ideological issues such as social welfare activities and facilitating such events to promote the social integration aspect establishes a relationship. The relationship develops a stronger trust bond and hence the capacity of individuals to participate in the profitability essence of the internationally-based organization (Michael, 2019). Such activity of CSR includes facilitating sporting events in local events and promoting competition amongst the teams. CSR is a strategic approach to integrating the organization’s operations with the social well-being of the foreign country.
Corporate Social Responsibility as a Strategic Management Initiative
Brand positioning is an ideology in the business market that demands a structural implementation approach mainly because of the resultant strategic management. The use of a structured approach over an unstructured approach contributes to creating a sustainable competitive advantage under the mainframe of corporate social responsibility. Taecharungroj et al. (2019) argue that a structured approach in brand positioning is a tool in any organization since it contributes to developing crucial concepts in competence. One of the competencies fostered by the structured approach in brand positioning involves both internal and external administration of the operations. The internally based administrative operations encompass stimulators and inspirational acts, verification tools for the planned activities, and promoting efficient employee relations. The externally based administrative operations enshrine the strategic repositioning of the brand architecture, an indicator of the business’s growth objectives, and its communication strategy through community engagement activities. Brand positioning is a pillar to the development of strategic management of an organization due to the integration of internal and external administrative tools.
The competence of an organization depends on the effective monitoring and control of dynamic business operations. The dynamic business operations that enhance competitive advantage engulf planning, analysis, implementation, and control. Ideally, the structural approach in brand positioning gears the development of competitive advantages in a company. On the other hand, using an unstructured approach involves the lack of definitive business goals and objectives. Over the decades, globalization fostered the intensification of business competition. Therefore, a lack of concise business objectives limits an organization’s efficiency in competent service delivery (Taecharungroj et al., 2019). In this case, the unstructured approach poses a challenge in boosting business competence than a structured approach in brand positioning. Apart from establishing a business identity, brand marketing initiatives render a definitive solution to the utilization of strategic management of an organization.
Corporate social responsibility is a multidimensional phenomenon whose effectiveness lies in the participation of all stakeholders. A shortcoming to the ideal solution of stakeholders’ participation renders a complex dysfunctional corporate social responsibility. The evolution of the global economy fostered the emergence of different interdependent concepts. Recently, the emergence of the Covid 19 pandemic forced the closure of the global economy. The lockdown initiative significantly affected the growth and resilience of both small-scale and international businesses. In this case, businesses focused on the optimization of strategic management, namely, evolutionary corporate social responsibility initiatives. An excellent example of an initiative encompasses the distribution of medical kits, sanitizers, and masks across the local communities (Mahmud et al., 2021). On the one hand, the organizations boosted the distribution and quality of healthcare services. On the other hand, the strategy fostered profound branding and marketing among the local communities. Therefore, corporate social responsibilities played a crucial role in enhancing the relationship building between an organization and the target market. Sustainable development encapsulates the essence of integrating the market dynamics and business objectives to cultivate a higher trickle-down effect of the accrued benefits.
Corporate social responsibility is an empowerment tool to an organization due to its dynamic effects on the business environment. Garcia-Sanchez and Garcia-Sanchez (2020) establish that the Covid 19 pandemic triggered a paradigm shift towards the strategic implementation of corporate social responsibilities. An excellent example is the Spanish companies that significantly invested in the population and the stakeholders’ interests to boost the public image and relation. One of the tools that corporate social responsibility features is the essence of commercialization. Although it is an initiative that boosts the trickle-down effect of benefits across the region, it is a phenomenon that enhances business profitability through advertising and marketing. The Spanish-based companies collaborated with the government and healthcare departments to boost welfare while fostering a positive image across the region. As a result, the companies attained popularity and expanded the market share due to the positive public image. The main goal of a business competence involves increasing the market share and customer retention because of the integral and perceptive value. Ideally, corporate social responsibility gears relationship-building among all stakeholders while rendering a commercialization effect.
Consequently, strategic corporate social responsibility initiative is a pillar to business competence. Although companies must invest in Corporate Social Responsibility, all stakeholders must rip the benefits on a long-term basis. Therefore, the integration of the various elements enhances the effective trickle-down effect. It is a bridging tool between dynamic entities such as countries and companies due to the imperative nature of enhancing all stakeholders’ participation. Corporate Social Responsibility as a multidimensional phenomenon observes the core values of the social and financial spectrum. The dynamic business operations that enhance competitive advantage engulf planning, analysis, implementation, and control. Engaging in the regional’s ideological issues such as social welfare activities and facilitating such events to promote the social integration aspect establishes a relationship. The relationship develops a stronger trust bond and hence the capacity of individuals to participate in the profitability essence of the organization.
Reference
García‐Sánchez, I. M., & García-Sánchez, A. (2020). Corporate social responsibility during COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 126.
Oh, S., Hong, A., & Hwang, J. (2017). An analysis of CSR on firm financial performance in stakeholder perspectives. Sustainability, 9(6), 1023.
Mahmud, A., Ding, D., & Hasan, M. M. (2021). Corporate social responsibility: Business responses to coronavirus (COVID-19) pandemic. SAGE Open, 11(1), 2158244020988710.
Michael, A. (2019). A handbook of human resource management practice.
Taecharungroj, V., Muthuta, M., & Boonchaiyapruek, P. (2019). Sustainability as a place brand position: a resident-centric analysis of the ten towns in Bangkok’s vicinity. Place Branding and Public Diplomacy, 15(4), 210-228. Retrieved February 16, 2021, from https://doi.org/article/10.1057/s41254-019-00127-5
