An Entrepreneur’s main reason for going into business is to maximize profit. Companies, with its combination of financial and human resources will provide a good or service which is needed or desired by a group of persons. Each business must operate from somewhere, and so each organization apart from abiding by the laws of the country, also has a responsibility and obligation to comply with the spirit, laws, ethical standards and norms of the community from which the company operates.
Not only do these companies have a social responsibility, but they should also extend this responsibility in a manner which is credible, and shows the integrity of the owners, and stakeholders. Corporate social responsibility extends benefits to the COMPANY, its CLIENTS, and the COMMUNITY.
Companies operating in a community will cease to exist if it does not reach its financial goal. Irrespective of how high the probability of a company’s success may be, persons will not patronize a company that they cannot identify with. A company whose presence is not felt in the community will inadvertently open the way for competitors, who will find a wide opening to fit itself into.
Human Resource is a company’s greatest asset; and apart from the time spent at the office during workers hours, improved staff relationship will create a better working environment. A good way of doing this is by staff social activities, apart from the usual parties and dinners. If staff is asked to volunteer in the community as part of a company’s exercise to repaint the children’s walls at a hospital, then a feeling of togetherness is created and staff is motivated to work harder, since they will feel that they are contributing to their communities as well.
A company which sponsors a sports team is more likely to receive repeated visits from persons associated to team members. This translates to immediate increase in sales. The company has also raised awareness of itself and its product and service since the team will wear its paraphernalia. Testimonials and word of mouth promotion can translate to additional clients, and is totally free of charge. The cost of the sponsorship may be a few hundred dollars, as opposed to hundreds of thousands of dollars that companies spend on elaborate promotion and marketing campaigns each year.
When a company does not fit into a community, and has not even tried to do so, it might as well move out. Companies need the community to buy into the goods and services that they provide and they in turn, need to give back to that community. Ensuring that the environment is not negatively affected by its operations is one of its major obligations. All companies, like people, need to operate in safe environments. How safe your company is really depends on what it has done for the community. The bottom line is if the company does not care, the community will not care either, and so this company is on its own.
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