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Corporate Social Responsibility: Environmental Accountability

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Discuss about the Corporate Social Responsibility for Environmental Accountability.



Most of the organizations have long been practicing certain forms of corporate social and environmental accountability with bigger goals in mind, of causal towards the community well-being and the way they influence the society on which they depend. However, there has been an increasing pressure on the companies to dress up corporate social responsibility (CSR) as one of the disciplines of business with the demand of every proposal delivering positive business results. The question of whether the corporate social responsibility (CSR) is beneficial and adds enough value to a particular organization is significant in developing the improvement of the community as private sectors have bigger resources than the programs aided by governments (Cristache et al. 2015). It has become an agreeable fact that CSR policies are one of the most significant parts of organizations’ profitability and the success it generates through it.

Corporate social responsibility has over the years been developing an effortless outline of check-writing performed by the organizations in setting certain composite principles for encompassing nearly each interface a company has with the society. Corporate social responsibility takes into account not only the things that an organization do with their profits, but also the ways they make them. It is beyond the limits of any sort of conformity and compassion, addressing the ways companies manages their social and environmental impacts along with maintaining of proper relationships in all the imperative field of authority: supply chain, community, marketplace and the workplace (Oliver and Heblic 2007).

The theory of ‘shared values’ by Porter takes in the notion of corporate social responsibility to another stage. He argued that organizations require making use of interactions with the society- and more significantly addressing to the problems of the society for driving new opportunities in business and generating a supply of considerable unexploited profits (Rangan, Chase and Karim 2015). Alice Korngold, a CSR consultant in New York echoed many of the concepts stated by Porter with the main being the organizations that influences in incorporating sustainability within their values and strategies would be the most booming in augmenting the wealth of shareholders. She further added that the business firms that have been creative in finding proper solutions to the challenges that exists in the global world like development of economy, healthcare, education and the protection of ecosystems would be the most profitable. However, University of Michigan’s Ross School of Business’ strategy professor, Aneel Karnani is of different opinion. He states that through seeking of profits and expansion, organizations are better served in generating employment and other related benefits to the society. They should do well to focus on that particular task.


Many of the top executives have started believing that organizations fair well if they do good. Organizations need to perform CSR in calculated way and not channel cash to the social business of the founder or into some sort of charity. It is acceptable to take from the bottom line if it is being performed in sustainable way. In the United States, the relationship between the social responsibility and profit is stated to be a pressing concern, where organizations have been placing a premium on the matter of corporate social responsibility. In the other parts of the world, companies mainly focus on administering their operations with more precision before they set out in improving the world around them. As per Gazzola and Mella (2017), it is imperative of them in getting their corporate governance right and getting their house in command first, before they start addressing the issues related to social and sustainability.

In maximizing the positive impact on the systems of social and environmental in which the organizations operate, companies should look to develop rational strategies of CSR. In the present scenario, organizations are not looking at CSR as one of the moves of marketing, but an investment of long-term. For instance, Coca Cola’s 5*20 program directs its aim towards bring in five million women in the developing world into its business process as the domestic distributors of the company by 2020. This investment from the house of Coca Cola in empowering women entrepreneurs would be generating more revenue for the company as they would be having more distributors and bottlers in selling their products. However, at the same time, this sort of investment would generally escorts to people being better educated that eventually leads to more affluent communities within that particular area that requires assistance.

Other organizations look CSR as the means of saving money. Bringing efficiency in energy is a good example. Retail giant Walmart possess three goals of its policy towards social responsibility: to be totally completed by renewable energy, to generate zero waste, and to sell goods or products that have the capability in sustaining the environment along with the people. These sorts of goals are considered to be lofty ones, but have the ability of saving a great deal of money for the company. Organizations that are socially responsible, construct their brands in attractive ways for their consumers and are more tempting towards the high eminence budding employees (Shabana, Buchholtz and Carroll 2016). Organizations who are now being considered as corporate citizens states that CSR has become a requirement and it is no longer seen as a option that can be sidelined. Corporate Social Responsibility can be defined as an intangible asset that can be integrally associated to the profits of the company, like it has been done in Starbucks. The coffee it markets is favourable to the growers who have been producing it over the eyras. The social responsibility in the part of Starbucks justifies to the fact that the prices set by the company is relatively higher than a standard cup of coffee at the convenience store.

It can be concluded that organizations existing around the world, and those who have been trading their shares and evaluating their values, have identified that corporate social responsibility has intrinsic value to the company. The accurate dollar number on the value of CSR might never be evidently enumerated, but the general tendency towards the bigger corporate engagements in social matters is the one that would be having longer impacts on the improvement of the community. CSR is believed to give rise to the next key alteration of the thinking that exists in business.



Cristache, N., Micu, A., Lukacs, E. and Susanu, I.O., 2015. Approaches Impact Of Csr In Companies. In Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE (Vol. 9, No. 1, pp. 822-829). Faculty of Management, Academy of Economic Studies, Bucharest, Romania.

Gazzola, P. and Mella, P., 2017. Can CSR influence employees satisfaction?. Economia Aziendale Online, 7(4), pp.331-337.

Oliver, F and Heblic, S., 2007. Corporate social responsibility: Doing well by doing good. Business Horizons 50, 247–254

Rangan, K., Chase, L. and Karim, S., 2015. The truth about CSR. Harvard Business Review, 93(1/2), pp.40-49.

Shabana, K.M., Buchholtz, A.K. and Carroll, A.B., 2016. The institutionalization of corporate social responsibility reporting. Business & Society, p.0007650316628177.


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