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Does it pay to be socially responsible? Explain why or why not. What are the implications for companies? 

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Discussion: Does it pay to be socially responsible? - Implications to organizations

Social responsibility is the recent trend which all major global companies embraced in recent years. CSR is the corporate social responsibility initiative which is recognized by policies and the organizations started investing certain amount of their total budget for the sake of socially responsible initiatives of the organization. Corporate social responsibility has proven track record of providing customer loyalty. Now a days, customers are not just looking for product features and competitive advantages, rather CSR is also being considered for selecting a particular organizational product(Vilanova, 2009).

Social responsibility initiatives of the organizations will provide good brand image for the organization. Adherence to the corporate social responsibility practices will provide organizations a unique recognition which can work on to promote brand image among the customers. For example, unilever is prompted as global leader in environmental sustainability and the company has been ranked as food industry leader in the Dow Jones sustainability world indexes for about 11 consecutive years and is also ranked 7th in the Global 100 most sustainable corporations in the world. Such identity will work on to uplift the prestige of the corporation in the global market. Further CSR initiatives like environmental sustainable measures of the company will provide distinct carbon credits and tax credits in some countries. They definitely will contribute to the business promotion and business objectives of cost cutting and revenue increase (Collado-Munoz, 2011).

Employees also like to join for socially responsible companies for fewer salaries than other companies; as such engagement will provide them the satisfaction of working for a unique noble cause. As these initiatives will work for the employees to associate with the company, build an image for the company as well help to develop customer recognition and competitive advantages, it is worth to involve in Social responsibilities and it definitely will pay back. There are numerous organizations worldwide involved in corporate social responsibility initiatives and have gained returns in terms of customer satisfaction and employee recognition as well. Example Coca-Cola spends a great amount of their revenues for social responsibility activities every financial year, the brand name is associated with the prestige and recognition for CSR. Similar observations can be seen with Google Inc.

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