Does Being Socially Responsible Impact Corporate Sales Revenue Research Paper

Does Being Socially Responsible Impact Corporate Sales Revenue - Research Paper Example As it has been said that the business has to return something back to the society where it is operating and it is the responsibility of the corporations operating in the society to return back and this has been termed as ‘Corporate Social Responsibility’. The fundamental goal of the business is to provide the shareholders with profits as Milton Friedman wrote in his article â€Å"the only social responsibility of the business is to increase the business profits of the shareholders†, yet CSR has played an important role in influencing the customer to purchase the company’s product (Beurden, and Gossling, 407-408) In recent decades the concept of corporate social responsibility has gained a lot of support from businesses as well as the society as this strategy provides the company to survive and differentiate itself in the market environment. This strategy is aimed to provide the customers with the products according to their need by assuring the eco-friendly environment and the advancement of the society. 1.2. BACKGROUND OF THE RESEARCH By applying the concept of corporate social responsibility the businesses are said to have higher impact on the sales of the company’s product. It had been noted that the company that implements the social responsibility have higher sales volume than other companies. It has also been found that this emerging trend has gained exceptional popularity with the passage of time as this social responsibility focuses on the economic, ethical and legal components rather than focusing on single idea of profit for the stakeholders. Corporate social responsibility is one of the business strategies that business people have shown their support for as this strategy focuses on responding to the society priorities and expectations with positivity and willingness. The economic component focuses on the profitability of the company. This is the foundation of the business that keeps the business keep going on. The second component of the corporate social responsibility is the ethical which focuses on the commitment to do what is right and to avoid any process that might harm the environment or the society. The last but not the least component of CSR is the legal component which is to obey the laws and regulations of the country and to do what is acceptable by the country and to avoid those procedures that are ignored by the society. 1.3. IMPACT OF CSR ON BUSINESS Corporate social responsibility plays an essential role in the success of the business. It not only retains the employees and the customers of the company due to their higher satisfaction le vel but also helps the company to attain new customers on behalf of their contribution towards the sustainable development of society (Jose and Patrice, 4). Corporate social responsibility helps the company to enjoy many benefits. Some of the benefits that a company enjoys due to such a strategy are strengthened brand positioning,