Sociology

According to Brown (2007), corporate social responsibility refers to the business management practices which ensure positive contribution to the society in which the organization is based. It is a strategy adopted by an organization to create a good relationship with all the stakeholders in the industry. To maintain the standards of corporate social responsibility, businesses must adhere to the legal, ethical and social structures that exist within the environment (Maignan  Ralston, 2002). Corporate social responsibility is about the business giving back to the society. Modern businesses have increased investment in the CSR activities since managers have realized the importance of improving the status of the firms within the society they are established. Organizations are using CSR as a strategy to improve the image of the business. A good public image to the business is required to improve the status of the organization within the society. Businesses with good public image attract more customers and maintain customer loyalty (Ronald, 2003).

Total quality management of all the activities of the organization is done to ensure that all aspects of the company are fulfilled. The activities of the business involve adding value to the social systems. These goals are achieved through satisfying the interests of all the stakeholders and delivering the required standards. The stakeholders to any organization according to Zigas (2009) include (but are not limited to) the government, non-governmental organizations, local communities, marketplace, customers, shareholders, employees, employees unions, workplace, the natural environment and others. For the business to succeed in the environment it exists within it must adhere to the government requirements, global standards, global supply chain, consumer attitudes, revolution in the information technology and the overall business ethics (Brown, 2007).

Corporate social responsibility is concerned about the changing business climate. Some of the changes in the business environment include the use of low cost standards in the manufacturing process, reduced manufacturing capacity to improve the quality of products (Zigas, 2009). Much emphasis has been placed on the energy sources and the effects on the natural resources. The emission of greenhouse gases has been criticized by the global communities. Responsible business activities have been encouraged to promote the welfare of the consumers. The activities of the business should have a positive impact on the economic trends (Belkaoui, 1999).

CSR is a means of improving the bottom line of the business. The bottom line of each business refers to the profits made from the activities they conduct. All businesses are profit oriented and the main goal is to maximize profits and minimize costs. Corporate social responsibility is a strategy used by the organizations to improve the corporate image. This increases the customer base to the organization and as a result, the sales of the company are improved. Increase in the sales of a business creates more profits to the business (Besser, 2002).

To improve the performance of the business, all stakeholders should be satisfied by all the activities of the business. The profitability of the business will depend on the integration of all the necessary factors. Success in business cannot be measured only by the profit levels made by the business. All the stakeholders to the business should be satisfied for the successful operations. Conflicts with stakeholders create poor business performance since the business is constrained by these factors (Wright, 2007).

Business people should be concerned about the ethics of corporate social responsibility. The business is located within an environment where there are many factors surrounding it. The aim of the business should not be to make profits only but also to promote the welfare of the people who contribute to its success. The success of the business is attributed to the employees, the community, government and the global economic institutions (Ronald, 2003).

The long term existence of the business will be determined by its positive impact on the social systems. The consumers of the products made by the company should be protected from harmful commodities. The employees should be made comfortable in their work environment. Legal institutions should be respected and all the domestic and international laws should be adhered to. Government rules and regulations ought to be respected. Environmental standards should be followed when conducting business activities (Maignan  Ralston, 2002).

There are several advantages of conducting CSR activities by the business. Husted and Allen (2006) suggest that the businesses which promote the welfare of the community improve their image. A good image of the company attracts more customers to the business. Adherence to the legal and governmental requirements improves the performance of activities and increases the support from these institutions. Investment in CSR creates value to the business since all the institutions within the environment are ready to support the firms in their corporate endeavors. Business activities which create conflicts do not bring success to the investors. Conflicts within the business arena reduce the success of the business (Besser, 2002).

The business owes to the stakeholders the responsibility of conducting conducive activities and creating a favorable environment. All institutions affected by the activities of the business expect good practices to be conducted. Such institutions include the legal systems, the governmental bodies, consumers, business partners, international organizations, environmental institutions and many others (Belkaoui, 1999).

Organizations spend many resources to promote their goals of corporate social responsibility. When organizations exceed their expenditure on promoting the social goals, they tend to increase the cost to the business. To conduct the activities of CSR, the business requires adequate finances. The business may reduce its profitability when it becomes more responsible. Since the main intention of the business is to make profits, the expenses to the business should be maintained as low as possible (Besser, 2002).
Involvement in the public affairs exposes the business to competitors. The competitors are able to learn the strategies used by the organizations. This creates a loophole to learning the strategies for attack by the competitors.  Businesses are established on competitive basis and all the activities of a competing business are monitored. When an organization exposes itself to the public, the competitors are able to learn some secrets which are used by the firm (Belkaoui, 1999).

An average participation in the activities of CSR is required for the business to succeed in the environment. Excess investment in CSR will lead to losses by the company. On the other hand, low investment in CSR will create a crisis which will affect the success of the business. The management of the business should operate at a moderate level of CSR (Ronald, 2003).

Multinational companies should exercise adequate CSR activities since they exist in a multicultural environment (Berkhout, 2005). There are many factors which influence the success of multinational companies since they operate in many countries where different people with different cultures exist. These organizations operate with several government and legal institutions. They are constrained by many forces to comply with the international standards. With the increase in the effects of globalization, the multinational organizations are required to adhere to many regulations which have been established to create a favorable business environment (Anderson, 1989).

Conclusion
Corporate social responsibility is the activity of promoting the social wellbeing of the business. It is a strategy taken by the business to create good relationship with all the stakeholders in the business environment. Many organizations have realized the importance of CSR and heavy investments are being done. Corporate social responsibility has created the need for businesses to act appropriately according to the requirements of all the partners. The success of any business depends on its relationship with the different stakeholders in the industry. Different institutions have different regulations which they expect the business to adhere to. These institutions have created systems to be followed by all the businesses within the environment. For successful business operation, an organization must balance the extent to which it conducts its CSR activities. Over-participation in the CSR will create losses to the business. CSR also exposes the business to competitors. Low investment in CSR will lead to conflicts between the business and all the stakeholders in the environment. The advantages of CSR exceed the disadvantages and businesses should establish strategies to improve their activities for the success of the business. All the socio-economic and legal factors should be incorporated in the activities of the business.