It is also through this article that it can be established that CSR increases a business firms’ profitability due to increased loyalty of the clients, lower risks in reputation during crisis and willingness of paying the premium prices (Chandler, 2010, p.48-50).
The adoption of Corporate Social Responsibility by business organizations is beneficial because it leads to improved financial performance by the company, increased customer loyalty and sales, reduced regulatory oversight, workforce diversity, decreased liability, access to capital and product safety, more ability in attraction and retention of employees by the company, lower operational costs, greater quality and productivity and enhanced brand reputation and brand image among others (Joyner and Pyane,2002, p. (2.4) Strategic decisions that are faced by business enterprises when trying to enhance or improve their performance of CSR: Various business enterprises have been faced with an uphill task in making decisions of whether they should adopt and implement the use of Corporate Social Responsibility in their enterprise.
(2.3) How CSR enhances the reputation of various business enterprises: According to the article by the Harvard Law School on Financial Regulation and Corporate governance, it was ascertained that activities, which were related, to Corporate Social Responsibility had a greater potential in the creation of various forms of value which were distinct to the customers.
It was through the perception of customers towards this value that can mediate the relationship between a company’s CSR activities and its subsequent performance in finance.
It was from this study that it was confirmed that the multidimensional nature of CSR had an immense influence on the perception of users or customers.
There was, therefore, a direct existence of relation between the perception of customers and in service valuation and social responsibility.
In order to find the empirical relationship that exists between the various parameters in a research, the use of observation as a research method is deemed to be appropriate though it is also expensive and time consuming.
The use of existing data can also be used as a method of data collection though its accuracy will depend on the experience of the researcher using it.
This guide includes information about how to find scholarly journal articles, books and e-books, reports, and other material about CSR, business ethics, sustainability, and ethical investing, and will help you get started on your research.
According to the Business Development Bank of Canada, corporate social responsibility (CSR) "is a company's commitment to manage the social, environmental and economic effects of its operations responsibly and in line with the public expectations.