AMOURETTE SPOTLIGHT Hipster Assignment Example | Topics and Well Written Essays - 3000 words

AMOURETTE SPOTLIGHT Hipster - Assignment ExampleA lot of g everyplacening bodies have made companies answerable towards expelling norms and set standards for declaration of their environmental compliances. Importance of corporate social responsibility is also reflected in the substantiateing momentum of mergers and acquisition dealings considering investments in socially responsible activities. Despite such rise in the value of CSR, the question remains as to why the companies find it important to engage and socially responsible deportment when it actually does not add any financially visible value to the firm. Also, it is questionable whether these firms actually believe in acting socially or is it entirely a means to gaining s germinateholder support and sh areholder (Font et al., 2012). The business solid ground is plagued with multitude of problems ranging from accounting frauds, environmental issues and social concerns to corporate irregularities. In this scenario, importan ce of CSR reporting cannot be eliminated. This paper aims to examine whether the issuing such CSR reports actually engage in socially responsible behaviour or merely try to convince stakeholders and gain investor support. It therefore highlights the berth of business ethics and highlights the importance of CSR reporting. CSR for Increased profitability It is undoubted that companies operate in an environment where existence is subject to free play of opposition between major players within any industry. In such unregulated attempt towards achieving greater market share, it is essential that government and media become aware of their role to act as controllers of social consequence of these activities. Their role has become significant and influential in todays times. These groups of people have high indicant to put extreme pressure of major companies to adhere to environmental and social standards. This has resulted in the fact that CSR has emerged to be one of the inescapable pr iorities of businesses. Research has also shown that when managers and directors take concern for employees and consumer welfare, they gain better support of their work staff in terms of productivity and loyalty than firms who have no consideration apart from earning profits. CSR in contemporary organizations There has been a sharp rise in CSR reporting in the recent decade. KPMG international has reported that about 95% of the largest 250 companies in the world issue standalone CSR reports as of 2011 data (Mahoney, 2012). This calls for a need to assess as to why companies have started reporting for CSR activities in such large numbers over their issues and sustainability efforts. The prime reason observed behind such rise in voluntary CSR reporting is the increasing pressure from various internal as head as external stakeholders on companies to emerge as devout corporate citizens. It is known that engagement in CSR initiative has costs associated with it which might tax its com petitory market position. Alternatively, the firm can benefit from the profits that accrue to companies for being responsible corporate citizens like retention of employees, positive consumer behaviour and investments and higher profits. CSR reports are issued with a view that such information apart from other information that is available to stakeholders, shall act towards the benefit of the company. The major benefit arising out of this is believed to be good company reputation. KPMG reported that the major reason behind CSR reporting is brand building and reputation enhancement. It is also likely that