Corporate Social Responsibility and Organizational Performance: A Theoretical Review

Abstract

This paper utilized a theoretical approach to examine the impact of corporate social responsibility on organizational performance. The paper notes that corporate social responsibility is an essential strategic component of several business organizations as they try to navigate the highly changing business environment. Some benefits of corporate social responsibility involvement identified includes assisting business firms to gain competitive edge over by increasing their reputation and acceptability, market share, improve profitability as against their rivals with less or unrecognised social involvement in their operating environment. The paper concluded that corporate social responsibility drives organizations profitability, and helps organizations gain competitive advantages over rivals in the market arena. It is recommended that managements should make social responsibility involvement a key strategic part of its business operations. Management should scan their environment to identify the appropriate need of their operating environment so as to understand what the people actually need, than just initiating and carrying out projects that may not be beneficial to the society, as this will put the organization in bad light, and their efforts may not be recognized and appreciated. Additionally, organizations should ensure that they disclose all their social responsibility actions to the appropriate stakeholders. This is because, the more people notice the positive social actions of an organization, their perception about such organization change, and this boost their images and reputation of the organization before the general public.