All entries for Saturday 20 February 2016
February 20, 2016
Strategic CSR plays a much wider role than I previously anticipated. It can be used not only to benefit the society but also as a marketing tool to create a positive image for the firm and increase a firm's profits. CSR indeed brings about various advantages such as brand differentiation, customer engagement, employee engagement and more. CSR is indeed a great addition to a business.
However, one need to also look at the constraints and evaluate each firm's capabilities before implementing CSR. For instance, a firm who do not have enough manpower may overburden its employees with further responsibilities in handling CSR issues. This may cause the employees to feel de-motivated and thus a higher turnover in the firm which will affect the firm's profits.
Furthermore, CSR is not a solution for a failing brand or product in the long run. A firm needs to critically analyse its products such as whether the product satisfies the customers' wants and needs and learn from the feedback given before implementing CSR strategies. Money poured into CSR for a failing business will just be futile. Problems needed to be detected and solved before CSR can be implemented.
Thus, while CSR may be a good addition to a business and beneficial to the society, there are many factors and constraints that have to be evaluated and looked into before the implementation of CSR. Failure to critically analyse various factors may cause the implementation of CSR to be futile.