Introduction
Corporate Social Responsibility (CSR) is one of the organizational practices that have been touted to provide a pathway to sustainable development. However, others perceive CSR as an unnecessary cost to organizations because it may not align to the objectives of an organization. CSR can be described as an organizational practice in which a firm seeks to contribute positively to societal goals through charity, engaging in volunteer activities, and supporting ethical practices (Galbreath, 413). In this case, firms seek to pursue accountability to themselves, the stakeholders, and the general public. The objective of the pursuit is to have a positive social, economic, and environmental impact on society. On the other hand, sustainable development can be described as development that seeks to meet the current societal needs without undermining the ability of the environment to meet the needs of future generations. This paper proposes that CSR is a fundamental principle for meeting sustainable development goals.
Benefits of CSR on Society
Depending on how firms choose to engage in supporting the stakeholders and communities, society stands to benefit in several ways. For instance, a business organization may dedicate itself to minimizing its environmental footprint and encouraging other businesses and individuals to follow suit. Since many firms rely on primary raw materials for their business, one of the ways a company can achieve the goal of minimizing its environmental footprint is by promoting sustainable harvesting or procurement of raw materials. The efforts in this line include partnering with producers in promoting sustainable raw material production and sourcing the materials ethically. A firm can also offer online training to its suppliers on sustainability and environmental stewardship. The outcome will be reduced carbon emissions which is a way of promoting sustainability in society (Kumar and Chandrakar, 5).
Additionally, a company can help society by providing opportunities to different groups of people. It can achieve its goals through education, employment, and training. Companies with multiple outlets or branches can ensure that they create opportunities in the neighborhoods where their branches are located and where they get raw materials. Accordingly, diversity and inclusion should be part of their business practices. Starbucks, for example, uses community involvement, human connections, and the celebration of cultures to promote diversity. Similarly, it has focused on hiring veteran and military spouses to give them career opportunities and also make good use of their operational experience and discipline. The company also considers more young people in hiring with the objective of helping them jump-start their careers by offering first employment (Starbucks Coffee Company, 1). These forms of social responsibility ensured sustainable growth and development for members of the society, as well as the company.
Benefits of CSR on Company
Opponents of Corporate Social Responsibility often identify two areas of concern. The first concern is the role of government in ensuring a sustainable society. However, studies have shown that business operations often have adverse impacts on society (Kumar and Chandrakar, 1). With that in mind, it is ethical that businesses play a leading role in reversing their adverse effects on society by engaging passionately in CSR. This can help undo the damage and reduce further negative effects on society. When companies work closely with the government and the entire society, it becomes easier to achieve sustainability.
The second concern to opponents of CSR has been the lack of benefit to the company. While many people acknowledge the economic, social, and environmental benefits of CSR on society, they oppose the relevance of the principle to companies. However, firms can gain significantly by practicing CSR. Some of the benefits that the company can get include increased brand recognition, positive business reputation, improved sales, and customer loyalty, and operational cost savings (Chong and Tan, 360).
Any business executive will want their company to have a positive reputation. Investment in social responsibility helps the business to build a reputation as a responsible business, which is an essential way of creating competitive advantage in the current market. Some customers go beyond preferring buying from responsible companies by insisting on social responsibility (Chong and Tan, 360). Similarly, many companies are more ready to deal with suppliers with responsible policies, such as Starbucks because the same will reflect on how the consumers perceive them.
Conclusion
It is important to note that despite using additional resources to create a positive social impact on society, a company can minimize its waste, emissions, and resource use. For instance, the use of renewable sources of energy can result in reduced utility bills. Through corporate social responsibility, a company can identify new business opportunities, such as developing new products or offering new services. For Starbucks, a focus on minimizing its environmental footprint has led to the introduction of a plant-based menu as part of its product offerings. Therefore, business organizations should lead in promoting societal sustainability by engaging in CSR.
Works Cited
Chong, Wei Nurn, and Gilbert Tan. “Obtaining intangible and tangible benefits from corporate social responsibility.” International Review of Business Research Papers 6.4 (2010): 360.
Galbreath, Jeremy. “How does corporate social responsibility benefit firms? Evidence from Australia.” European Business Review (2010).
Kumar, Rajesh, and Rituraj Chandrakar. “Overview of green supply chain management: operation and environmental impact at different stages of the supply chain.” International Journal of Engineering and Advanced Technology 1.3 (2012): 1-6.
Starbucks Coffee Company. Starbucks Social Impact, 2020. <https://www.starbucks.com/responsibility>
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