Tuesday, July 23, 2019
Strategic implications of Corporate Social Responsibilities Essay
Strategic implications of Corporate Social Responsibilities - Essay Example According to Forbes (2012), involvement in CSR results in creative development and cost reduction within the organisation. An organisation, that is focusing upon sustainability will innovate and undertake methods to achieve the purpose. Such steps often result in creation of a new product that is eco-friendly and cost efficient. Forbes (2012) highlighted at least six reasons for organisations to incorporate CSR in their business activities: innovation, cost advantage, brand differentiation, long term strategic importance, customer engagement and employee engagement. Innovation, in context of CSR, can result in identification of multiple of sustainable business opportunities emerging ahead of an organisation. For instance, Unilever, as a part of its CSR towards environment, was able to develop a new hair conditioner that unlike other substitutes required less water. Once sustainability is incorporated in activities, it is obvious to witness effective utilisation of resources, efficien t consumption of energy and other non-renewable resources and increased usage of eco-friendly materials. It has been observed so far that brand differentiation has become one of the primary reasons for organisations to embrace CSR. Prominent companies such as Coca-Cola and Pepsi have incorporated brand differentiation in their products such as water bottles that are recyclable in nature, to enhance their brand image as sustainable organisations. In addition to brand differentiation in this interactive environment which can be achieved.