Strategic Corporate Social Responsibility

Strategic Corporate Social Responsibility 

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As per the Chandler (2001) corporate social responsibility refers to transparent business practices that are based on the ethical values, compliance with legal requirements and respect for people, communities and the environment. In other words beyond making profits, companies are responsible for the whole impact they create on people and environment. currently stakeholders expect that organizations should be more environment friendly and socially responsible in conducting their business.

Also Business Accounting and common usage "bottom line" refers to profit or loss. These days most of the companies adopted the TBL framework to evaluate the performance levels in a broader aspect to create a great business value. According to Elkinton (1998) triple bottom line consists of 3 stages and commonly known as 3P's

1.  Profit - Refers to the economic value created by the organization after deducting the cost of all inputs.
2. People - Refers to fair business practices toward labors, community and region which conducts the business.
3. Planet -  Refers to sustainable environmental practices as environmental sustainability is the more profitable course for a business in the long run.

Benefits of CSR

CIPD (2013) stated that, through CSR activities organizations can build its credibility, positioned higher in the market, protect the reputation and ultimately securing the company's license to operate the business. Therefor most of the companies are adopted to TBL framework while they are more concerned about CSR activities.

References 

• Chandler, G. (2001). Defining Corporate Social Responsibility, Ethical Performance Best Practice.
• CIPD (2003). Corporate Social Responsibility and HR’s Role, Londona
• Elkinton, J. (1998). Cannibals with forks : The Triple Bottom Line of 21st Century Business