Kotler and Levy, in their book, Corporate Social Responsibility define corporate social responsibility as "a commitment to improve community well-being through discretionary business practices and contributions of corporate resources".  Some of the benefits of being socially responsible include (a) enhanced company and brand image (b) easier to attract and retain employees (c) increased market share (d) lower operating costs and (e) easier to attract investors.

A socially responsible firm will care about customers, employees, suppliers, the local community, society, and the environment. CSR can be described as an approach by which a company (a) recognizes that its activities have a wide impact on the society and that development in society in turn supports the company to pursue its business successfully and (b) actively manages the economic, social, environmental and human rights.

This approach is derived from the principles of sustainable development and good corporate governance. Marketing managers within different firms will see some social issues as more relevant than others. The relevance of a given social issue is determined by the company's products, promotional efforts, and pricing and distribution policies but also by its philosophy of social responsibility.

Read Full Article

The author is Lecturer in Commerce, Sri Sarada College for Women (Autonomous), Salem.


Image Courtesy: