The Social Responsibility Of Business - 2053 Words

There currently is an evolution-taking place; now the level of a business social responsibility has become increasingly integrated into modern business practices. This focus has seen both advantages and disadvantages to the business. However, to what extent has the use of the greater focus of a business social responsibility affected its competitive advantage in its marketplace. CSR is described as; â€Å"the principle that companies can and should make a positive contribution to society, of managing the social, environmental and economic impacts of the company† (corporate watch). Therefore, CSR indicates the activities the business should partake in that is not indicated or stated in the law. Adopting a degree of social responsibility has†¦show more content†¦They’re no longer hidden from how their food is produced or how their iPods are made. And, because of things like social media, like-minded people more easily find each other, have their say and effect change. There’s a level of transparency that wasn’t there before.† (Wharton) Therefore, businesses have to adapt to what the consumer wants and a study by Landor found â€Å"77% of consumers say it is important for companies to be socially responsible†(Penn Schoen Berland, march 29 2010) This is because of the easy access of information business can be easily damaged by their activities. This information can, therefore, conclude that adopting a level of Social responsibility can help a business to attract consumers by differentiation from its competitors, a consequence of this can help to improve the business brand name and image. These theories can be confirmed by authors such as Bansal and Roth (2000); that have suggested that competitiveness is ones of the key factors for adopting a CSR approach; this therefore indicating, the reason for adopting a socially responsible approach would be because of the returns to the business it gives. However Matthew Bishop, business editor of The Economist, said; â€Å"company social responsibility initiatives could diminish shareholder returns, district business leaders from their focus, and often allow companies to continue bad behaviour in the