Why social responsibility is important for business.
Corporate social responsibility is important especially when working with strategic alliances because its purpose is to enhance competitiveness. “Embracing socially responsible policies goes a long way towards attracting and retaining customers, which is essential to a company’s long-term success.”(Murphy, 2019) Corporate social responsibility include the ethical aspects of the following issues: human rights, safety and health, business practice, governance, environmental engagement, consumer relations, marketplace activities, community involvement and social development. Many leaders have started to look at CSR as an opportunity to strengthen their business while contributing to the society at the same time.
When CSR is developed it can create relationships with suppliers, customers, and potential competitors. “Some innovative companies have managed to overcome this hurdle, with smart partnering emerging as one way to create value for both the business and society simultaneously. Smart partnering focuses on key areas of impact between business and society and develops creative solutions that draw on the complementary capabilities of both to address major challenges that affect each partner.”(McKinsey, 2020) When you have a strategic alliance you are trusting that the other company will also be ethical in the way they do business, when that trust is broken many other opportunities will disappear because of that problem that has occurred. That is why company’s need to be ethical and obeying its practices because without it there will be no opportunities, no customers, and a loss of business.
References:
Murphy, C 2019. Why social responsibility is important for business. Retrieved from https://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp
McKinsey, 2020. Making the most of CSR. Retrieved from: https://www.mckinsey.com/featured-insights/leadership/making-the-most-of-corporate-social-responsibility
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