Ethics and Social Responsibility
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Ethics and Social ResponsibilityAre companies participating in CSR just for profits?Introduction“Banking with a sense of purpose” is what Development Bank of Singapore (DBS) has been achieving for the past fifty years (Piyush Gupta, 2015). From a neighbourhood bank to the largest bank in South-east Asia, it has also transformed into a company which participates actively in its Corporate Social Responsibility (CSR) initiatives. DBS, being an owner of Post Office Savings Bank (POSB), believes in contributing back to the society. One of the example was reintroducing the POSB National Savings Campaign in January 2015 which practiced utilitarianism where it helped and taught all the primary school students in Singapore to save by providing incentives to them (Piyush Gupta, 2015).  It makes us wonder why would companies participate in CSR and what are their motives for doing so. Is it true that companies fulfil their CSR responsibility for the greater good of the society or are they trying to gain something out of it? In the response paper, I will elaborate on the benefits of CSR which drives companies to participate actively and what would be the other implications of CSR.Benefits of CSRAccording to Bateman and Snell (2013), CSR is a responsibility of a business towards the society. It is believed that companies participate in CSR to give back to the society. However, many argued that companies do gain either tangible or intangible rewards from their CSR initiatives as the main purpose of doing business is to gain profits. Companies can make use of CSR to improve their brand image and customer loyalty, increase revenue and better quality and productivity. It is also easier for companies to expand into other markets and attract new customers, giving them a competitive advantage (Palgrave Macmillan, 2011). One example would be a survey conducted in 2002 (Ogrizek, 2002) in which 89% and 66% of the respondents agreed that the presence of CSR would influence their buying decisions and their perception of the company which in turn showed that CSR is important to a company in many ways.
Furthermore, CSR helps to create good employee engagement and it retains, attracts and develops better talents in the company. The 2020 Workplace found that 80% out of the 1800 13-25 year olds wanted to work for a responsible company that is committed to its social responsibility (Jeanne Meister, 2012). Despite that, it may not be necessary that all employees are willing to participate in their company’s CSR initiatives as it consumes their free time. Some companies may set a quota on the number of hours that every employee have to contribute towards the projects which makes employees unhappy.Reconciliation- Creating a Win-Win SituationNonetheless, companies need to strike a balance between profit maximisation and CSR which creates a win-win situation for them and the various stakeholders. Managers in the organisation are responsible to their shareholders and it is not right to spend their money on projects which are unrelated to their key business interests (Bateman & Snell, 2013). I agree that companies do not have the obligation to contribute to the society as their main purpose is to satisfy their stakeholders in order to keep the company operating. However, it should not affect the society and the environment while conducting their daily business operations. Nevertheless, if there are no companies partaking in CSR, the government will have to assume full responsibility to care for the community. Hence, it is important for the companies and stakeholders to work hand in hand to benefit everyone. In addition, society’s problems can provide opportunities for businesses to tap on. Companies can create demand by resolving the issue. One good example would be Microsoft’s partnership with American Association of Community College to help train their students and provide facilities for them as well. This benefits the country by increasing the supply of IT workers, strengthening its brand image and expanding their product market (Bateman & Snell, 2013).