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Sustainable Business: CSR is moving from Optional to Mandatory

Sustainable Future Business: CSR is moving from Optional to Mandatory


In the modern scenario of Business we can see that the advance technology has completely transformed the business practices. In this regards the consumer buying behavior has also changed at great extent. There are more options available for the consumers as compare to the past, therefore the factors involved in the decision making process has also been changed.

In the past, usually the buying decisions were made on the base of the quality and price of the product, however, with the advent of globalization and other technologies, the process of manufacturing become fast, to manage a business has become comparatively easy and companies could make better analysis about the risk associated with the business. In this regards, the competition has become intense and the consumer has more option to consider before making their buying decision (Seo, 2013).

Rob Stated that in the modern world, “The CSR has been moving from Optional to Mandatory” (Rob Asghar, 2015).

In this situation, it is ultimately important for the all the businesses to seriously consider the consumer demands as a major factor to increase business progress. In this aspect, the most popular and most concerning strategy that has been using in modern business practice to differentiate a company from others, is that the companies has been tending towards their Corporate Social Responsibilities and companies are considering this factor as a major part of business (Abbas Ali & Al-Aali, 2015).

Purpose of Writing

Considering this fact, the following writing attempt is to create an understanding about the Corporate Social Responsibility as a competitive advantage in the modern business world. It is propose to emphasize the companies to use the CSR in the business practice for the sustainable business growth.

What is CSR?

Before moving towards the core purpose, it is important to understand the concept of CSR. Corporate social Responsibility or CSR is based on the activities of an organization towards its stakeholders by addressing the ethical and moral responsibilities of the organization towards the employees, towards the customers, towards the society and towards the environment (Lewis, 2014).

Accordingly, Michael Hopkins describes the CSR as it is concern to the treatment of stakeholders by a business organization in an ethically responsible manner. Further he explained that ethically responsibility means to treat the stakeholder by following the international norms. In this concern he also justifies the importance of the CSR practice by a company and said that it is process to achieve sustainable business growth alongside the sustainable development of the societies (MHC, 2011).

Considering the Social Corporate Responsibilities, Carroll defined that the Social Corporate Responsibilities are divided into four categories (MHC, 2011).

Philanthropic responsibilities:  It means to be a good corporate citizen.

Ethical Responsibilities: It means to be ethical and consider the obligations and in all the business strategies consider that what is right and what is wrong.

Legal Responsibilities: It does means to obey the laws as it is society’s codification of right and wrong.

Economic Responsibility: It does means to be profitable for the company, for the society and for the country as well (GAC, 2015).

MNC’s penalized by sick CSR practices

In this regards, if we look at some of the multinational organizations have to face serious crises as they violated the ethical responsibilities while working in other countries. Such as Wal-Mart had been targeted by the human rights organizations as the company is not giving rights to its employees in Bangladesh. In 2014, in a Rana Plaza Incident more than 1100 people died but company did not compensate its employees. Similarly, company is violating the wages laws as lowest salary of an employee in Bangladesh is $37 per month (SETHI, 2014).

On the hand, Coca Cola had to stop its bottling factory from Kerala India as the company’s activities destroyed the fertility of the land where people are largely depended on agriculture. Moreover, the company is responsible in the lowering the water level (RWS, 2015).



Organizations used CSR as a competitive Advantage

On the other hand, some organizations has received great response as they have emerged the CSR. McDonald consider the CSR to win Indian market as most of the people do not eat meat, thus McDonald introduced new range of vegetable menu that received great response (CHOI, 2015).

Similarly, as Toyota emerged CSR and share knowledge with the local companies in its globalized business campaign, Toyota succeed to establish its market in European and Asian countries and playing vital role in the betterment of the local people (Ichijo & Kohlbacher, 2007).

On the other hand, Apple has been largely investing in CSR such as it is providing facilities to its supplier to produce the quality of product. Apple response to the customers and employees demand (Benn, 2014).

Similarly Microsoft is one of the most successful companies in the IT world, and its owner Bill gates is one most kind person as he used to charity a major part of his earning. Recently Bill Gate and his wife Melinda Gate have started a number of CSR campaign for the development of human (Gates Note, 2015).


It has become a reality that “CSR is moving from optional to Mandatory.” Considering the importance of the CSR in sustainable growth of business in the modern, there is needed to give special towards the CSR according to the consumer behavior that demands from the company to be ethical in its relationship with its stakeholders. In this respect, the organizations, should consider their employees as an asset of the organization and deal them with equality and justice. On the other hand, the environment should be given serious concern by the companies and should try to avoid activities that resulted as pollution. Societies should be supported by giving employment opportunities to the local people and by the mean of following laws, regulations, social norms and cultural aspect. The customer should be given importance and therefore, there is need to address the transforming consumer behavior to meet the demands of the customers and to make the customers satisfy and loyal.


Abbas Ali, & Al-Aali, A. (2015). Corporate Social Responsibility . Retrieved December 1, 2015, from

Benn, S. D. (2014). Organizational change for corporate sustainability. Routledge.

CHOI, C. (2015). McDonald’s to simplify corporate structure, focus on customers. Retrieved September 14, 2015, from

GAC. (2015). Corporate Social Responsibility. Retrieved December 1, 2015, from

Gates Note. (2015). OUR BIG BET For the Future. Retrieved December 8, 2015, from

Ichijo, K., & Kohlbacher, F. (2007). The Toyota way of global knowledge creation. Automotive Technology and Management,, 7(2/3), 116-134.

Lewis, M. (2014). Globalization, Corporate Social Responsibility, and Ethical Considerations. Journal of Management, 2(2), 45-61.

MHC. (2011). Definition of Corporate Social Responsibility. Retrieved December 8, 2015, from

Rob Asghar, R. (2015). How Corporate Social Responsibility Is Moving From Optional To Mandatory. Retrieved December 1, 2015, from

RWS. (2015). ase against Coca-Cola Kerala State: India. Retrieved December 1, 2015, from

Seo, K.-D. a.-E. (2013). The Relationship among Brand Equity, Corporate personality, Attachment and Consumer behavior. Roultage publisher.

SETHI, S. P. (2014). The World of Wal-Mart. Retrieved December 7, 2015, from

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