Corporate Social Responsibility: Poverty Essay

Question:

Discuss about the Corporate Social Responsibility for Poverty.

Answer:

Introduction

In today’s business environment, Corporate Social Responsibility (CSR) is considered as one of the major factors. In the recent years, organizational managers consider CSR as a crucial factor for the development of organizational strategies for the development of the corporation and for the achievement of organization goals and objectives. Thus, CSR can be considered as an effective framework for the development of strategic framework and business relationship with various stakeholders of the companies (Tai & Chuang, 2014). Most of the companies all over the world are promoting CSR in the companies as it is a crucial mean for reduction of poverty, hunger and disease while bring improvements in the aspects like education, values, equality and economic success. For this reason, countries are implementing laws that require the business organizations to publish reports based on their exposures to environmental, social and governmental risks and their strategies to address them (Saeidi et al., 2015). Thus, it can be said that business organizations can improve their performance with the help of effective CSR strategies. With the assistance of effective CSR strategies, business organizations can increase goodwill in the market and this process creates positive impacts on the revenue and profitability of the companies (Suliman, Al-Khatib & Thomas, 2016). Thus, based on the above discussion, it can be said that sound financial as well as sustainable performance of the organizations can be achieved with the assistance of appropriate CSR activities that contributes towards the economic development as well.

In case of Malaysia, various activities of CSR have been attracting the attention of many of the industries after the announcement of Malaysian government regarding CSR in the year 2006. In this announcement, the Malaysian government directed all the Malaysian Public Listed Companies (PLC) to publish the details of their organizational CSR activities. Since that announcement, it has become mandatory for the Malaysian companies to take the CSR more seriously. After that, it has been seen that almost all of the companies under every industry have been publishing their CSR report on yearly basis. One of such industry is the Malaysian Construction industry. The developed CSR framework of Malaysia has been helping the construction companies in Malaysia in the identification of major CSR activities in order to cover all the areas of CSR (Flammer, 2015). It has been observed that CSR has become a popular topic for the Malaysian construction companies. It has been seen that the adoption of effective CSR strategies have been majorly helpful for the construction companies of Malaysia. In this context, it needs to be mentioned that there is many studies conducted that attempt to establish the relationship between various CSR activities and performance of the companies. Thus, this research takes an honest attempt to analyze and evaluate the relationship between different CSR activities and the performance of the companies of the Malaysian construction industry. Apart from this, another major aim of this research is to analyze various components and factors of CSR that can increase the financial performance of the companies.

References

Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance? A regression discontinuity approach. Management Science, 61(11), 2549-2568.

Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341-350.

Suliman, A. M., Al-Khatib, H. T., & Thomas, S. E. (2016). Corporate Social Responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the Future, 15.

Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.

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