Week 5 Assignement What Are the Five Driving Forces of Csr? What Is the Market for Csr?

1.    What are the five driving forces of CSR?  What is the market for CSR?  

From the literature, the five driving forces of CSR are the following:

1. Increased prosperity

CSR role is becoming more and more important in the economy for stabilization and durable growth, this is why developing countries have supported the implementation of CSR at various levels, and empower business to focus on CSR and invest in it as a long term return on investment and in the same time as stabilization factor for society, that’s why the need to increase affluence is one of the key driving factors of CSR.

1.  Ecological Sustainability: 

In general, it was always one of the well-known key drivers of CSR, global warming is one of the most important topic well covered and highlighted in medias, the causes and consequences of the industrialization impact on the environment. Due to the importance of the topic, companies have understood the interest to contribute to the protection of the environment which is the main source of raw materials at the end of the day.

1. Globalization:

For multinational companies, globalization brings on one hand more opportunities and profits and on the other hand require from companies to adapt themselves to the changing environment and acceptance of unprecedented challenges in the global level, industrial level and other levels. Impact of globalization on business lead companies to consider CSR into the business decisions, strategy and overall in operations. Globalization raises up the issues of less care on CSR such as income inequity, labour eyploitation and social unstability as per Thomson (2002).

1.  Transparency:

Nowadys it’s even more costly to hide information rather to be transparent since we are living in the information era, where internet is and information are easily accdessible to everyone. The flow of information has shifted back to stakeholders, for companies, consumers, NGO and the media are the ones to be aware of when communicating and sharinf information, therefore being transparent is becoming an advantage for coporations and secure more profit for long-term.

1. Knowledge:

Consumers of today in the information era as mentioned before are more aware of what they really consumer and how it’s produced as well as how is the whole supply chain for instance, the fairtrade label for some products globally. Consumers knowledge is increasing and therefore the companies are driven to be more CSR conscious in all aspects, from the raw materials, manufacturing, supply chain and sales.