Review of Corporate Social Responsibility on Firms
Introduction
Corporate social responsibility is an efficient strategy to analyze and evaluate the business corporation’s social obligations in building trust between the consumers and the organizations. Various challenges, for example, economic and political problems, corruption, lack of corporate social responsibility engagements, affect the organization’s profitability and sales. Consequently, Corporate Social Responsibility is a universal entity by firms put in place to make sure organizations are kept at bay in evaluating their progress and relationship with customers, communities, and the environment. The article analyzes the corporate market, telecom companies, in one of the developing countries, Haiti, due to the political instability, corruption, economic crisis, low level of customer trust, which corporate social responsibility seeks to study.
The article’s intended audience is the companies that want to stabilize themselves as best service providers to customers despite the externalities affecting business like the political uncertainties, organizational rivalries that corporate social responsibility seeks to answer. The reader should know the research methodology, components of a good research process used in conducting the research, different challenges, and problems that might be experienced during research work. Additionally, the reader should know the components of corporate social responsibility, its theoretical and empirical issues. Finally, the reader should be knowledgeable in statistical data to calculate the test of hypotheses available in the article.
Brief Summary
Corporate social responsibility is a strategy used to analyze service quality and customer satisfaction in organizations. The approach is after the trust of the customers because it improves cooperation between clients and firms. To achieve that, organizations have to provide quality services that lead to the satisfaction of their clients. Therefore, the emphasis is on service quality as the trigger to customer satisfaction today. Due to the numerous challenges facing Haiti, the telecom company has benefitted from the corporate social responsibility strategy. However, the government has silenced media capable of unmasking the usage of funds meant for the corporate social responsibility and the revamping of companies in the country. Furthermore, the study has only been conducted in one company in Haiti. Therefore, the CSR’s success in company performance is still questionable because of internal company characteristics or the literacy level of individuals in a country. Consequently, some factors may hinder the progress of the CSR study of a company. Political uncertainties of Haiti is a significant factor that has derailed the development of the country.
Results and Findings
The research shows that CSR is a useful tool company can use to influence its customers’ trust. Different statistical data calculated showed the CSR’s perception, service quality, and customer satisfaction as essential markers for customer trust and satisfaction. Despite a hostile political and social setting in Haiti, the relationship between CSR and customer trust is linked to the fruitful association between service quality and customer satisfaction. Firms may influence a positive attitude in the customers by helping in the customers’ needs and services like the construction of institutions of learning, support groups, and tree planting.
The economy of certain countries is dragged down the tunnel by the governments in place. Haiti, a developing country, has been stagnant in growth due to the political atmosphere that cripples the economy by rechanneling funds meant for salvaging organizations. Furthermore, the political class has reverted socio-political responsibilities to organizations, making it quite impossible for the organizations to stabilize and have independence. Additionally, stakeholders are an essential part of the growth and profitability of organizations. Therefore they should be at the forefront in creating a formidable relationship between companies and customers. Furthermore, according to the researchers’ orientation on further research that may be conducted on CSR, it is imperative to note that there may be different results on different companies and countries. Factors that may influence such results include the company’s laws and regulations, the characteristics of the company, the literacy level of individuals in a country, among others. Furthermore, stakeholders are an integral part of an organization. They compromise the groups, either from the society or without, that help in the running of firms. Organizations should, therefore, market their values and services to attract stakeholders.
Analysis
CSR has been a vital project in improving the relationship between customers and organizations. CSR consist of different components that conduct role plays for its success. Servant quality is one of the components of corporate social responsibility. It satisfies the need of the customer at any given time. To earn the customers’ trust, organizations thrive on providing services performance that other organizations may not match. To achieve service quality, organizations invest in quality goods and services that match the customers’ needs and are environmentally friendly. They create an open relationship with customers, where different views and inputs are received from customers about products and services. It helps improve their commodities and service offering. Additionally, organizations create an excellent responsive network where feedbacks are treated with the urgency it deserves to improve on themselves and their products, therefore giving assurance to clients on the need to trust in their products and services.
Customer satisfaction is another goal of any organization seeking economic success. Organizations maintain customer satisfaction by giving them quality service provision. Organizations invest in excellent and empathetic workers who treat and communicate excellently with their clients. Customer satisfaction also arises when organizations take part in the development of the social environment. Different organizations construct institutions of learning and sponsor the education of students from all walks of life. The philanthropic gesture is mirrored in the service productions they offer. As a result, it builds a good relationship between them and customers.
Additionally, there is a positive correlation between customer satisfaction, service quality, and corporate social responsibility. Organizations are now up to combining service quality within their quarters, with the corporate social responsibility, that evaluates their performance, to provide the best customer satisfaction feedback. Consequently, matching the two domains influences profitability and customer trust, which is one of the organizations’ objectives. According to the article, CSR activities affect the perception of service and product quality, therefore becoming a reinforcement to client satisfaction.
Contributions
Claudel Mombeuil and Anestis K. Fotiadis successfully conducted the research. Mombeuil is a professor at the faculty of economics and administration, Quisqueya University in Haiti. Apart from this research, he has five other publications in his name. Among them is an exploratory investigation of factors affecting and best predicting the renewed adoption of mobile wallets, institutional conditions, sustainable energy, and the UN sustainable development discourse: a focus on Haiti and many more. Mombeuil researched in Haiti because of the social uncertainties in Haiti that matched corporate social responsibility study. He successfully coined the social and professional needs of the CSR model.
Fotiadis is an Associate Professor based in Zayed University, college of communication and Media sciences. He studied business management and administration at Moscow University, Russian Federation. Later, he published more than forty research papers, including corporate social responsibility.
Both Claudel and Anestis contributed immensely to the economic class in the revamp of their sales, especially the telecom phone company that they conducted the research. It was an eye-opener to them because customer trust was dwindling, and political interference in such firms was common. It was an avenue for creating an amicable relationship between the social, political, and economic class in driving forth the economy of Haiti and preserving its environment. Additionally, the research opens doors to individuals and society to take education as a core instrument for building a nation. Education creates opportunities and avenues for preserving good leadership culture that is void of corruption and improves the ethics needed to run a country. Corrupt government officials are also cautioned to take the building of a nation as a priority by teaming up with leading organizations to conservation the environment and revamp the economy.
References
Mombeuil, C., & Fotiadis, A. K. (2017). Assessing the effect of customer perceptions of corporate social responsibility on customer trust within a low cultural trust context. Social Responsibility Journal.