2. Why I should implement CSR in my organization?

2. Why I should implement CSR in my organization?

According to Unerman (2008) and Bebbington et al. (2008) introduce a corporate social responsibility in firms means:

• Manage the business in long term period.
• Manage relationship with all the stakeholders class.
• Manage the impact on environment of the business.

The figure 1 summarize what written above:

Figure 1 – What means CRS for firms (source: our elaboration)

However, CSR activities should not be viewed as a resources drain activity because, if well implemented, CSR policies can provide several benefits to firms:

1. Increase customer retention and enhance relationships with customers, suppliers and networks.
2. Attract, retain and maintain a happy workforce and be an Employer of Choice. CSR activities help employees to better understand why theirs company is doing something good for external  environment.
3. Save money on energy and operating costs and manage risk. One of the easiest places for a company to start engaging in sustainability is to use it as a way to cut costs. Whether it’s using less packaging or less energy, these savings add up quickly.
4. Differentiate yourself from your competitors. In the past, brand differentiation was one of the primary reasons companies embraced CSR. Companies such as Timberland were able to find their voice and incorporate the company’s values into their business model.
5. Generate innovation.
6. Improve your business reputation and standing.
7. Provide access to investment and funding opportunities.
8. Generate positive publicity and media opportunities due to media interest in ethical business activities. Firms that introduce CSR have a good image return.

The figure 2 summarize all the benefits provided by CSR to firms.

Figure 2 – CSR benefits for firms