Is CSR relevant today?

I would have thought that the title is nearly similar to the question whether CSR and profit go hand in hand. Indeed. As I have mentioned previously that consumers want to buy products they trust, the trust will generate customer loyalty and therefore, the company can build a sustainable relationship within their customers. In other words, CSR represents an argument for a firm’s economic interests, where satisfying stakeholder needs becomes a main aspect to retain societal legitimacy, and therefore financial viability, over the long term.

There are 3 main arguments why CSR happens to be important. First is the moral argument. It is known that CSR is shaped by individual and societal standards of morality, ethics, and values that define contemporary views of human rights and social justice. Consequently, the moral argument reflects a give-and-take approach. Society makes business possible and contributes directly and indirectly with what businesses need to success (for instance, workers, physical and legal infrastructure and consumer market). In return, businesses have an obligation to society to operate in ways that are considered to be socially responsible and beneficial. Secondly, CSR is a rational argument for businesses in seeking to maximise their performance by minimising restrictions on operations. In this globalisation era, where individuals and activist organisations feel empowered to enact change, CSR represents a means of anticipating and reflecting societal concerns to minimise operational and financial limitations on business. Lastly, in terms of economic argument, CSR adds value because it allows companies to reflect the needs and concerns of their various stakeholders groups. Simply put, CSR is a way of matching corporate operations with societal values at a time when these parameters can change rapidly.





From those arguments, we can say that CSR is still (and will always be) relevant today. It is a way to increase affluence of the company. Consumers are willing to buy products, even they are more likely to pay a premium for a brand, they trust. Thus, in this case, CSR will grow brand loyalty. Additionally, if CSR is applied in a poorer society, in need of work and inward investment, it is less likely to enforce strict regulations and penalise organisations that might otherwise take the business and money elsewhere. Moreover, as today media and NGO activists are more likely to criticise the poor policy executed by the companies, CSR can be a strategic instrument to avoid negative publicity that can low the company reputation, court-imposed fines, and confrontations by activist groups (e.g. Greenpeace). Below is an example of a good CSR execution at McDonalds.




Reference :
Werther, W. B. & Chandler, D. (2006). Strategic corporate social responsibility: stakeholders in a global environment (pp.17-20). California: Thousand Oaks.