Corporate Social Responsibility In Medium And Small Companies

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Corporate Social Responsibility in medium and small companies

The present investigation had as its main purpose to analyze corporate responsibility in medium and small businesses as a business policy that has been developed in recent years taking these organizations as SMEs are one of the largest representatives of the international, national and local market thatThe economy dynamizes. It was recognized that SMEs develop two phases for the implementation of CSR, the first responds to a phase of organization and implementation of an economic income, as the authors have recognized, among others that have determined through case studiesthat phase two of CSR Development is the last stage and in that transit it takes considerable time in addition to not being an entity trained in generating a social impact but that its activity or service focuses on other tasks is necessary to make the link withentities that are responsible for this type of projects.

It was also recognized that the basic axes of the development of a CSR is the social, environmental and economic factor determining points for thematic axes to be resolved and deep impacts are generated;Thus, opinion groups are recognized that as third parties allied in the process serve as mediators between entities and communities and their interests vary from one to another depending on what type of organism respond. To recognize the management of these groups, axes of good governance and accountability have been developed that allow showing objectives achieved in the projects implemented.

Business dynamics have been modified in the last century with the aim of adapting and prevailing in an increasingadministration’s thinking. Thus, the Corporate Social Responsibility application (CSR) started in the United States but quickly expanded until it was structured as a potential element in a company.

Being able to generate a concept of CSR is complex because its application varies according to the entity and the reasons for the latter are varied, but perhaps some of the most important have to do with the difficulty of landing the concept to SMEEs companies,which are responsible for approximately 70% of commercial activities worldwide, and on the other hand the fact that large companies that have begun to develop activities that point to the development of CSR, in many occasions do not do so in a wayauthentic but vitiated by the desire to use it to sell its image, which by definition would vitiate what in essence the RSE procures.

Corporate social responsibility responds to the new form of the company and environment association because it is recognized that it is immersed in a society and that it has a dependency relationship between entity and citizens, so that in the organizations of the 21st century this isA term that has unprecedented social relevance. Which can be defined as that “voluntary commitment of companies with the development of society and the preservation of the environment from its social composition and responsible behavior towards the people and social groups with whom it interacts

The previous concept recognizes a series of key elements that allow to project what is expected about a company when it speaks of its entity will be immersed within the social, this product of the change of mentality because it is formulated that organizations have certain obligations to compellThe society that is its key element, since, from it it takes human talent for its production, the raw material of its environment and its clients or consumers are immersed in it evidencing that so that the market cycle of the company developsneeds the community.

The implementation of CSR in Colombia and more specifically in SMEs has been recent and late, since the dynamics in the country around the constitution of medium and small businesses have demanded financing tools and fiscal facilities that have to be sustained in thetime and constitute a strong entity. That is why it has focused on profitability on social intervention work that allows CSR this is recognized in a study by Flórez.

In terms of corporate social responsibility, Colombian SMEs are in an incipient stage, where in addition to a very worrying ignorance in the issue, economic interests such as profitability and competitiveness in terms of lower costs govern the policies of small and medium -sized companiesthat fight to survive.

Which shows that the CSR in Colombia is not developed as a result of SMEs are in a stage of consolidation of market management such as value chain, suppliers and economic aspects that are still necessary to assert a stage moreIt is to strengthen customer loyalty and business profitability to move forward to the next stage that implies the assessment of social type categories that will allow market solidity.

The above is no stranger to the dynamics that occurs in Cesar and its capital Valledupar despite the fact that small and medium enterprises are in the stage described above a different scourge occurs and there is the perception of a high applicationof the CSR by SMEs, this is recognized by both the organizational component and citizen perception highlighting the social intervention process which generates a differentiating panorama at the local level.

Then the above allows to recognize the existence of a differential factor given that despite being in the initial process on the constitution of a profitable business, the SMEs of Valledupar have an incidence in which this CSR is perceived in greater proportion arising thereby the following the followingQuestion What is the differential factor that allows the greatest perception of CSR?

Corporate social responsibility in SMEs

SMEs are small and medium enterprises that are constituted by lower production and incorporation of employees in the processes, it is the type of company that is managed and supported mainly in Colombia in recent years this because it promotes the development of family ideaswhich include greater employment flow due to their ease of financing support and projections. Around these entities is very little that is recognized in the matter of CSR, because, there is the myth that large multinationals are responsible for this task because they have sufficient resources to promote social programs.

The above is far from reality since currently SMEs have strengthened a more socially active participation that when they are local tend to build direct ties with the environment to which they are inserted;Pointing to social promotion not only generates a business contribution but also the investment in social matters has become an advertising margin that affects the concept of the consumer, thereby affecting the sale of products and services hence its current importance.

The strong nucleus of the company that implements the CSR as Galea recognizes it is that it can strengthen customers for a good reputation and prestige when exposed as an entity that is in the process of supporting projects with social impact being an innovation factor in the market. Thus, the company is molded and its name as another product of the entity that is presented to draw a story to tell.

Adding to the above today there is a growing pressure from public institutions. Governments and public administrations are becoming aware that it matters to have responsible companies and create agencies to help them manage social responsibility, more or less binding according to countries, and also develop laws or recommendations in this regard. The measures vary in the different states, but all these are endowing with agencies and legislation that favor the assumption of social responsibility by companies.

Thus, so that corporate social responsibility must be linked to ethics with the meaning that this provides it, a company with a defined ethic creates a symbolic aspect that gives it recognition in the market and with it acquires preference among consumers thatThey differentiate it from other brands with an equal product for its corporate value.

CSR is an ethical reflection on business activity, this management model includes a set of social, economic, and environmental responsibilities that organizations have with their environment, maintaining sustainability as the main performance criteria, with requirements ofgreater transparency, without neglecting the interests of the actors involved with the company.

Recognizing that the indicators to determine corporate social responsibility are defined from the social, economic and environmental nature of these organizations.

Social factor

The social factor is the key element within the development of the de fact. Social sustainability intends that future generations have the same or greater opportunities as previous generations.

Intends to lay the foundations for adequate economic growth through incentives for the improvement of education, knowledge and innovation. In this social dimension the concept of equity is implicit. It means including the most disadvantaged groups (for example, the disabled) in decision making. Marinez goes much further and recognizes that this dimension is framed in which

A responsible company is one that assumes the impacts that its decisions and activities cause in society and the environment, through transparent and ethical behavior;However, the behavior of the company and its relationship with its different stakeholders depends on the power relationship that it can exercise over them

To achieve the foregoing, it must be recognized that companies are not trained to promote projects of this type, so that a real impact on the social dimension of CSRTo these tasks, who really know society and its needs. The reputation arises from the comparison in the mind of the individual in the image of a company, that is, of the characteristics that, based on their experience and knowledge, attributes to a company in the face of what he considers that values and behaviors should beIdeal. Reputation is not, therefore, the image of an organization, but a judgment or assessment that is made on said image.

The above materializes from the organization because it is a value that is built through an effective planning and management over time and that must be managed just as other assets of the company are managed. Corporate reputation can be broken down into five components: Commercial reputation is the opinion that customers have from the organization from their experience with the products or services it markets. If the commercial reputation is good, it will allow you to differentiate themselves and can put higher prices to your products or services

In general, it can be said that a company enjoys a good reputation when the best professionals want to develop their career, shareholders and investors entrust their capital, consumers have it as one of the first options for the quality of their productsand services, and the countries where they want to remain in them for their ability to create wealth for the whole society. We see here, again, the objective of CSR, the improvement of reputation. For a company to be reputed, it must be responsible and must be profitable for its shareholders and its interested parties: offer quality products, a motivating work environment, be innovative.

 

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