The best firms at CSR don\'t see this as taking away from their profits or their

Question

The best firms at CSR don't see this as taking away from their profits or their corporate mission (presumably to make shareholders richer). In fact they see CSR as part of the corporate mission itself, which is a major difference in the way of thinking about your business. Also makes a difference at the shareholder level. People investing in these companies know that a certain percentage of the profits goes to the CSR initiative(s) supported by the company. So they know they are giving back to society. Would you or anyone else in class want to give examples of companies that get CSR right?

Explanation / Answer

These lines are truely said by someone , "Business cannot be successful when the society around them fails."

This is very true fact that CSR must be seen as a mission of any business to serve the society. A business is grown in the society, it works with the resources from the society and it reaches the heights just because of the society. Thus it has to be corporate vision and mission of the company to serve the society better through Corporate Social responsibility.

Best firms in the world, do not take CSR as the appropriation of profits/ shareholder's wealth, rather they consider as a mission that a business must follow as a responsibility towards the society. Best firms, by properly taking CSR activities as a part of their vision, ensures shareholder's confidence in the company and they are often, delighted by the fact that their investments or profits are being distributed back to the society in any form.

There are many companies in the world which has taken CSR as a part of their corporate mission and has set examples how comapies can take CSR right. Following are the 2 examples:

1. Starbucks : This company has been in market for more than four decades. From the inception, Starbucks has tried well to operate in an ethical manner and it proved to be ethical most of the times. Fortune magzine named Starbucks as 5th most socially responsible company in the year 2012. This company always tries to keep innovating various ways to develop sustainable production of the coffee. It has set C.A.F.E. practices which ensures the environmental leadership and quality of production. It supports Etho Water, which is provding clean water for more than 1 billion people globally.

2. Microsoft : Microsoft is a well established brand in IT as well as CSR activities. This company was awarded 'the best' for corporate social responsibility by the Reputation institute. One way it is helping people is organising annual Employee giving campaign, where employees of the company attend fundraising events for the many non profit organisations. This campaign is held almost every year from year 1983, and was successful in raising more than $1 billion contribution to more than 30,000 organisation worldwide.

Thus these two companies, as you can see from the examples, were successful in getting CSR right.

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