Table of Contents

Executive Summary........................................................................................................................2
Corporate Social Responsibility (CSR).............................................................................................3
Article Review: “Stop Talking About How CSR Helps Your Bottom Line” by Stephan Meier & Lea
Cassar.............................................................................................................................................3
CSR Factors Considered in Article...................................................................................................4
Reasons for Success of CSR.............................................................................................................5
Recommendation whether Implement CSR or Not........................................................................6
Conclusion......................................................................................................................................7
References......................................................................................................................................8

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 Executive Summary
An effective use of corporate social responsibility that is practiced by organizations brings
positive impact on various social factors like economic, social and environmental. Critics say
some companies use CSR as marketing tool to stronger their customer base based on emotions
and moral factors. Article on CSR by Meier & Cassar suggests that CSR is not useful tool if
organizations use corporate social responsibility framework as a tool of strategy to increase
their profit margin. However, overall reception and purpose of corporate social responsibility
framework is highly welcoming and accepted by the stakeholders of organizations and society.
CSR becomes essential piece of yearly reports of organizations and now it can't be toppled even
there is analysis from certain gatherings. So it is highly recommended that CSR should be
implemented by organizations.

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Corporate Social Responsibility (CSR)
Corporate social responsibility (CSR) is recent practice by the business organizations where focus
is given on sustainable development model of organization. In CSR, organizations address social
and environmental issues in business affairs related to them. An effective use of corporate social
responsibility that is practiced by organizations brings positive impact on various social factors
like economic, social and environmental (Kim, 2019). Most organizations plan CSR and issue
statement related to CSR affairs development in their annual reports. In practice, organizations
develop CSR framework for image building purpose so that a positive image of the organization
be build in the eyes of stakeholder as well efforts are made to reduce any negative impression.
There are practical evidences that organizations that are socially active and spend their
resources on social cause have relatively better image in the eyes of stakeholders and attract
more customers (Aljarah, 2018).

Critics argue that many organizations practice aggressive strategy in terms of corporate social
responsibility for the sake of increasing profits. They have better financial position as more
revenue is generated which ultimately leads to higher profits. Such companies use CSR as
marketing tool to stronger their customer base based on emotions and moral factors (Meier,
2018). However, supporters of corporate social responsibility framework think otherwise as they
believe that CSR is relatively new trend and instructed by government authorities for a
sustainable development purpose in mind where environment and social aspects could be saved
for future generations. In the era of social media and internet where information spread
through millions of people within minutes, stakeholders of an organization are more aware than
before and they would like to engage with an organization where social responsibilities are met
effectively and any negative news related to social factors would affect the image of
organization (Barnea, 2010).

Article Review: “Stop Talking About How CSR Helps Your Bottom
Line” by Stephan Meier & Lea Cassar
Article presented a critical view of corporate social responsibility as authors’ emphasis that a lot
of money is spending by large organization on CSR. Organizations who implement CSR has
increase productivity and increase retention of employees while rewards are in form of social
benefit. Authors argue that organizations should not opt for CSR because by doing so
productivity of employees would go down as they feel that they do not get any benefit from
social activities (Meier, 2018). Meier & Cassar conducted survey to find the trend and
perception of employees towards CSR framework where one group was told to make extra
slogans in return of financial benefits while other group was told to make extra slogans and
extra money will be spent on charitable purpose. Results of the survey show that group who
was told to make extra slogans in return of financial benefit produce more and only 49% of the
group make extra slogans who was told to make extra slogans and extra money will be spent on
charitable purpose (Meier, 2018).

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Article suggests that CSR is not useful tool if organizations use corporate social responsibility
framework as a tool of strategy to increase their profit margin then whole purpose of the
framework goes in vain. Employees in the organizations have close look of the intentions of
using social responsibility framework and their interest varies accordingly to the go along
organizations’ perspective (El Goul, 2011). However, it is not necessary to agree with the
findings in the article because there is limitation in the research as well and it does not portray
the scenario of all organizations using corporate social responsibility and their employees’
behavior to CSR intention of organizations. CSR is relatively new trend and instructed by
government authorities for a sustainable development purpose in mind where environment and
social aspects could be saved for future generations (Coombs, 2011).

CSR Factors Considered in Article

Article mainly focuses on corporate social responsibility factor of charity and volunteering.
Research was conducted in the article about willingness of workers for charity purpose. Charity
or donations are made by many organizations as part of their CSR policy where they donate
funds to various under-privileged groups. These funds could be financial or providing necessary
items of daily use to them (Meier, 2018). Organizations also fund social causes in the countries
like Bill Gates Foundation (project of Microsoft) help to eradicate Polio disease by providing
funds and humanitarian supports to countries where it still exist. Etihad Airways has corporate
social responsibilities in various sectors where they help build schools in African countries, or
given shelters to homeless people in war zones. There are many examples of such charitable
works that are integral part of CSR policies of various organizations.

Another CSR factor which is discussed in the article is volunteering. Volunteering is a broad
factor in corporate social responsibility framework where different stakeholders of an
organization become part of volunteer programs. These stakeholders include customers,
employees or members of NGO’s, however, not everyone involves in it rather few passionate
individuals who have passion to be a social workers go into volunteering. In volunteering,
organizations make welfare centers or conduct campaign to help the society where they invite
stakeholders to be part of the mission (Aljarah, 2018). In the article, workers’ volunteering is the
only focused point of research where sample of around 3,000 employees was taken. Result in
the article shows less interest of employees to be part of charitable purpose which persuade
authors to conclude that CSR is not helpful tool as human resource is concerned.

Meier & Cassar concluding their study in the article emphasis on failure factors of CSR “Overall, our
study indicates that firms probably should not use CSR initiatives as merely another tool to benefit
their HR strategy. Workers care about the genuine use of pro-social incentives and may react
negatively to firms using social initiatives to increase productivity or profits. Just as we care about
other people’s intentions as well as their actual behavior, workers care about why firms offer CSR
incentives, not just how much good they do. (Meier, 2018)”

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In the given research sample in the article, CSR factors were not successful because the
participants involved was not keen to be part of social responsibility in term of charitable work.
CSR is not useful tool if organizations use corporate social responsibility framework as a tool of
strategy to increase their profit margin then whole purpose of the framework goes in vain.
Employees in the organizations have close look of the intentions of using social responsibility
framework and their interest varies accordingly to the go along organizations’ perspective. Study
in the sample did not give proper indication of organization and workers behavior was also not
properly involved. Another reason for its failure is lack of motivation and communication
because the research sample where it was indicated that company have no specific purpose of
charity rather it is going in charity because everyone is doing, got less than half of the workforce
response to be part of it (Kim, 2019).

Reasons for Success of CSR

Apart from the findings in discussed article, overall reception and purpose of corporate social
responsibility framework is highly welcoming and accepted by the stakeholders of organizations
and society. It is because of fact those organizations who are practically active in implementing
CSR framework has contributed handsomely in solving social issues. In practice, organizations
develop CSR framework for image building purpose so that a positive image of the organization
be build in the eyes of stakeholder as well efforts are made to reduce any negative impression.
There are practical evidences that organizations that are socially active and spend their
resources on social cause have relatively better image in the eyes of stakeholders and attract
more customers (Coombs, 2011). So it can be said that image building and customer satisfaction
are primary reason for success of corporate social responsibility in organizations. CSR becomes
integral part of annual reports of companies and now it cannot be overturned even there is
criticism from some groups.

CSR framework leads to competition among firms based on social activities of companies and
now there is race of higher social image of organization where they do various social works as
part of strategy. Talking about sustainable development, environmental factors of CSR
framework is very crucial for organizations. Due to rise of industrialization and incorporation of
industries in living areas, pollution is increasing and damaging the environment gradually
(Barnea, 2010). Similarly extreme weather condition is also because of building of infrastructure,
industry and deforestation. In such scenarios, it becomes responsibility of the organizations to
make sure that they do not become part of this pollution. To control environment and save it for
future generations organizations should reduce industrial waste, make proper disposal of
garbage make greener areas as their contribution of corporate social responsibility. By this way
CSR can be successful if it is contributing to the society as well (Aljarah, 2018).

Philanthropy could be other success reason of corporate social responsibility that can be done
by donations, charity, funding NGO’s and providing free products to under privileged.
Multinational and large companies tend to be more philanthropists because they have large
resources to contribute in charity work. If they support local communities and charitable

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programs then society can be benefit from them which is major success factor of CSR
framework. Apart from philanthropy, volunteering could be also success factor of corporate
social responsibility that shows the level of sincerity of a company (Coombs, 2011). Volunteering
is a broad factor in corporate social responsibility framework where different stakeholders of an
organization become part of volunteer programs. These stakeholders include customers,
employees or members of NGO’s, however, not everyone involves in it rather few passionate
individuals who have passion to be a social workers go into volunteering. In volunteering,
organizations make welfare centers or conduct campaign to help the society where they invite
stakeholders to be part of the mission (Kim, 2019).

Human resource factor or ethical labor practices are also considered as successful factors of CSR
because it is responsibility of an organization that they should adopt standard human resources
practice to treat their workers fairly, provide them timely and reasonable pay and do not violate
human rights of workers. Different countries have different laws relating to labors and it is
responsibility of organizations to follow the law of country where they are operating (El ghoul,
2011).

Recommendation whether Implement CSR or Not

It is important to consider that corporate social responsibility has more supporter than critics
because it is contributing somehow to the society. In the time of social media and web where
data spread through a huge number of individuals inside minutes, partners of an association are
more mindful than previously and they might want to draw in with an association where social
obligations are met adequately and any negative news identified with social variables would
influence the picture of association. CSR isn't helpful instrument if associations utilize corporate
social responsibility structure as an apparatus of methodology to expand their net revenue then
entire reason for the system goes futile (Aljatah, 2018).

While organizations ought to be centered on developing income and benefits, there's a case to
be made that it's additionally significant for them to be acceptable corporate residents. There is
adequate proof that a guarantee to corporate social responsibility can positively affect an
organization's accounts. Speculators can settle on choices dependent on whether an
organization has comparable qualities, and would now be able to assess an organization's
general prosperity by its pledge to CSR. So it tends to be said that picture building and consumer
loyalty are essential explanation behind achievement of corporate social responsibility in
associations (Kim, 2019). CSR becomes essential piece of yearly reports of organizations and
now it can't be toppled even there is analysis from certain gatherings. So it is highly
recommended that CSR should be implemented by organizations.

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Conclusion
CSR article by Meier & Cassar concluded in their article that corporate social responsibility is not
a useful tool as organizations use it to maximize their profits and there is less concern for the
society. However it is missing various points because its study is very limited and findings are not
showing true picture of the CSR concept. CSR isn't helpful instrument if associations utilize
corporate social responsibility structure as an apparatus of methodology to expand their net
revenue then entire reason for the system goes futile CSR is relatively new trend and instructed
by government authorities for a sustainable development purpose in mind where environment
and social aspects could be saved for future generations

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References

Meier, S., & Cassar, L. (2018). Stop talking about how CSR helps your bottom
line. Harvard Business Review, 31.

Kim, J., Cho, K., & Park, C. K. (2019). Does CSR Assurance Affect the
Relationship between CSR Performance and Financial
Performance?. Sustainability, 11(20), 5682.

Barnea, A., & Rubin, A. (2010). Corporate social responsibility as a conflict

between shareholders. Journal of business ethics, 97(1), 71-86.

El Ghoul, S., Guedhami, O., Kwok, C. C., & Mishra, D. R. (2011). Does corporate
social responsibility affect the cost of capital?. Journal of Banking &
Finance, 35(9), 2388-2406.

Coombs, W. T., & Holladay, S. J. (2011). Managing corporate social

responsibility: A communication approach. John Wiley & Sons.

Aljarah, A., Emeagwali, L., Ibrahim, B., & Ababneh, B. (2018). Does corporate
social responsibility really increase customer relationship quality? A meta-
analytic review. Social Responsibility Journal.