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Corporate social responsibilities and its effects on an organization

Social responsibility is the key thing that an organization has to consider more than profit maximization. The new marketing concept primary focuses on customer satisfaction then on profit maximization. Social responsibility is also a part of customer satisfaction and an organization should make strategies, which will further lead to social welfare. This will ensure the stability of the organization in the society and marketplace as well.

 Corporate's responsibilities regarding society

As we all have personal responsibilities to the people and the world around us, same way organization also has certain responsibilities regarding society. All the things they do has an effect on the public and society, which can be positive and negative as well. It is the duty of an organization to have the knowledge about hoe their [products and services are effecting the social values and customers.

There are four main types of social responsibilities and they are Legal responsibilities, Economic responsibilities, and Ethical responsibilities.

Legal responsibilities of a company

Before setting up a company, owners must ensure that the company is able to complete all its legal responsibilities. No illegal work will be done in the company and it will meet all the legal requirements. It is important to ensure that the company will obey all laws, which can involve the security policies, environmental law and labor laws.

 helping specific group of people_CSR

Economic responsibilities of a company

It is very important for the company to focus on consumer satisfaction instead of profit maximization. If the company is offering services and products to a specific group then they must ensure that the product is useful for that group. It is also considerable that the group can easily afford the product or service.

Ethical responsibilities of an organization

After meeting above basic requirements of the society, company needs to meet the ethical requirements of the company. This involves the policies of the company, as the customers believe that the company will provide best thing to them so they trust the promise of the company. It is the duty of the company that rather than cheating their customers the company must complete their promises.

 Better image of organization

Effects on an organization

Better image

It will help to build a strong trust in the customers and this will help to improve the image of an organization. If a company is able to meet all its responsibilities then it will also lead to make the goodwill of the company. These days, better image of a company plays an important role to attract more and more people and increase the demand of the company.

More profit

If a company will have its unique identity, it can earn more in the market place. People spend their precious money and time only on a thing or service that is well – renowned and can meet their all needs and wants. If a company will have its unique identity in the market, this will lead to profit maximization.

 Expansion of the businessExpansion of the business

Expansion of the business

As the company will have sufficient amount to spend on the capital then the company can enhance the productivity and take further steps to expand the business. This can be highly beneficial to improve the infrastructure and pay more wages to workers.

Stability and govern support

As the company is working for the social welfare and protecting the environment this can help the company to get the support of the local government. As the government may reduce the tax on the several products and services of the company and may rebate in sources like electricity and water to the company.


An organization has responsibilities for society and if it fails to meet its social responsibility, then it can harm the image and life of that organization.

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