Corporate Social Responsibility - there is one and only one, Essay

Corporate Social Responsibility - there is one and only one, responsibility of business - to use its resources and engage in activities designed to increase it - Essay Example (Rust, Moorman, and Dickson, 2002) In order to gain benefits from CSR initiatives, Handelman and Arnold (1999) argued that companies should be engaged in CSR for good causes and at the same time offer high quality products to its consumers. The main intension of the company’s effort in investing on the CSR initiatives is an important factor that could affect its success. According to Sen and Bhattacharya (2001), CSR initiatives could backfire and result to a lower purchase value and a negative perception.1 The proper implementation of CSR initiative is better than the use of high cost advertisements since it could not only increase a company’s profitability but also establish a direct and more effective relationship with its customers. Based on the observation of Drumwright (1996), the use of advertisements together with a social dimension is gradually increasing. In line with the increasing importance of CSR, several marketing studies shows that social responsibility programmes have a significant direct and indirect positive effect on several customer-related outcomes. (Bhattacharya et al., 2004; Brown, 1998) A good relationship between the company and customers enables the customers to develop a positive attitude on the company’s products. (Berens, Van Riel, and Van Bruggen, 2005) Since most of the companies who are knowledgeable on how to take advantage of the CSR initiatives have proven that social participation could result to a better relationship with the satisfied customers, investment on CSR is considered as â€Å"the smart thing to do.† (Smith, 2003; p. 52) Satisfied customers tend to be loyal to the company despite the tight competition within the same industry. (Bolton and Drew, 1991) The positive experience(s) of customers toward a company will be passed on to other prospective customers via