The Importance of a Socially Responsible Firm

Author: Ishita Verma

Corporate Social Responsibility (CSR) is a management idea whereby organizations incorporate social and natural concerns in their business operations and collaborations with their partners. CSR is commonly understood as the route through which an organization accomplishes a balance of financial, ecological, and social goals, while simultaneously tending to the expectations of investors and stakeholders. Corporate social duty has become one of the standard strategic policies of our times. For organizations, the overall aim is to have a positive impact while expanding shared value for the owners of the business, its workers, investors, and partners. It acts as an economic multiplier and business generator. Society demands that companies are responsible for their investment in society. It is never past the point where it is possible to have any kind of effect. Indeed, even the smallest exertion towards social change can positively affect the world and urge different organizations to do likewise.

Microsoft, ranked number 6 in 2018 Global Corporate Responsibility RepTrak has been a strong proponent of Social Responsibility. Microsoft corporate social responsibility (CSR) is guided by the citizenship mission of the company which is “to serve globally the needs of communities and fulfill our responsibilities to the public''. In addition, the altruistic exercises of Bill and Melinda Gates Foundation established by Microsoft founder Bill Gates are associated with Microsoft in the perception of the public to a certain extent [1]. Microsoft's giving program donated $1.6 billion in 2017 and targets to reach 2 billion by the end of this year.

Microsoft has been instrumental in amplifying voices from the Black and African American community at Microsoft. Microsoft CEO Satya Nadella posted on Twitter “There is no place for hate and racism in our society. Empathy and shared understanding are a start, but we must do more. I stand with the Black and African American community and we are committed to building on this work in our company and in our communities." Microsoft current and ex-employees believe people need to be treated equally, fairly, and respectfully— especially blacks who often get treated so poorly.

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Works Cited

[1] Dudovskiy, John. “Microsoft Corporate Social Responsibility (CSR): A Brief Overview.” Research-Methodology, 10 Feb. 2019, research-methodology.net/microsoft-corporate-social-responsibility-csr

[2] Sherman, Natalie. “Why Firms Are Speaking out about George Floyd.” BBC News, 7 June 2020, www.bbc.com/news/business-52896265.