CSR, a corporate social responsibility, is a
necessary activity that every organization emphasizes, but it provides costs
and imperative rather than the actual opportunity to society. The CSR is performed
just for the purposes to show social awareness, and to avoid business risks.
There are four arguments as followings that cause conflicts between business
and social, including failures in generating benefits in social and economic. First,
morality: firm should operate in good ways, but they realize more about their
own benefits and costs. Second, sustainability: firm has to be aware of
practices that may harm to society and environment, but its concepts are vague
in human resources. Third, license to operate: firm use the license to identify
stakeholders’ matter, but they allow outsiders without understanding of the firm’s
details to determine CSR. Fourth, reputation: firm give an importance to
outsiders who hardly come up with strategic that useful to organization.
With regard to
interdependence, corporate need to integrate social perspective into firm’s
strategy by the following steps. Identifying intersection in which corporate
affect and is affected by society. They need to realize the inputs, rules and incentives,
demand, and supportive industries. Next, choose social issues which are
affected by our business, and create shared value. Then, create agenda by
grouping and ranking social issues. Both responsive and strategic CSR should be
included in agenda to achieved benefits in social and economic at the same
time. With responsive CSR, corporates should act as good citizen by determining
the clear and measurable goals, identifying activities which affect to society,
including the best resolutions in order to reduce the impact of social
generated by the firms.
Corporates with strategic CSR should begin with a
small initiation which then provides huge benefits to social and business. It emphasizes inside-out and outside-in practices which
the company and communities can benefit from shared value. While those
practices are performed to advocate social improvements, businesses aim to
reduce the firm’s limitations as well. Social dimension should be carefully
added in the value proposition in the strategic CSR.
Corporates should adjust CSR to fit in each
organization, and focusing mainly on what society will gain rather than the stakeholder
interest, including the firm’s image and reputation. CSR should be viewed as
development direction for the future competitiveness. The moral practices and
thinking about social and social issues should be encouraged in all kinds of business.