The Effectiveness of Corporate Social Responsibility

Corporate social responsibility is the responsibility of enterprises for their impact on society and it has a long history associated with how it impacts on organization’s behavior.

Businesses have a hierarchy of responsibilities to meet, ranging from making a profit to benefiting society. Firstly, in the bottom there are the economic responsibilities which the companies have them to be profitable. Secondly, there are the legal responsibilities and with them the companies obey the law. Thirdly, there are the ethical responsibilities and they make companies to be ethical. Lastly, in the top there are the philanthropic responsibilities which obligate companies have people that they are good corporate citizens.

There are many arguments for and against for corporate social responsibility. First of all, one pro is that the CSR balances corporate power with responsibility. Another is that it discourages government regulation. Also, it promotes long-term profits for businesses and it improves businesses value and reputation. Last benefit but not least is that CSR corrects social problems caused by businesses. On the other hand, there are also a few disadvantages. First con is that CSR lowers economic efficiency and profit. Second con is that it imposes unequal costs among competitors and hidden costs passes on to stakeholders. Another negative aspect is that CSR requires social skills which sometimes businesses may lack. Last disadvantage is that it places responsibility on business rather than individuals.

The company which I chose to analyze is the National Bank of Greece. “National Bank of Greece has been at the forefront of Greek social and cultural life. Today, its socio-cultural role has been extended to embrace communities and cultures of other countries also, as NBG increasingly expands beyond the borders of Greece, but always retaining the principles of its essential nature and commitment. The Bank and its subsidiaries aim for high standards of corporate citizenship by preserving and promoting universal human values as well as the social, intellectual and cultural value systems of the countries in which NBG operates. The Bank further ensures that the CRS Action framework also remains aligned to the long-term interests of its shareholders. The Bank and its subsidiaries fully comply with decisions that forbid cooperation with countries, businesses or persons supporting violence and terrorism. The Bank and its subsidiaries believe that environmental responsibility, through the adoption and implementation of specific environmental policies, constitutes an integral part of good corporate conduct. The Bank and its subsidiaries seek to contribute to social cohesion and advancement in their respective countries of operation and support efforts to address global social and development issues. The Bank and its subsidiaries endeavor to enhance and promote cultural values and actions in the realms of art and education in each country of operation. All the CSR Action of the Bank and its subsidiaries is undertaken independently of any individual customer, shareholder or other related party interest. The Bank and its subsidiaries do not provide direct or indirect contribution or funding to political parties.”

To sum up, my personal opinion on the effectiveness of corporate social responsibility is that all companies must participate in many different social and environmental actions because they both help the world be better and attract much more customers. They give people hope and something to believe. I hope that the companies which have corporate social responsibility must keep on doing this activity in the future and the companies that they do not participate in those actions must think about it more seriously and start giving their help.