Why Do Companies Do Csr?

Why do companies do CSR? Use a business example to illustrate you answer

   Nowadays, people expect companies to do more than a profitable business , but also responsible to environment and society. Companies put more effort on doing CSR with reasons, which must benefits to their company in terms of sustainability. Let me take China mobile as an example to illustrate why companies do CSR.

  Firstly, the greatest benefit of doing CSR is generating innovation. When a company is trying to be responsibility and consider in different aspects and stakeholders. They will have a new insight and idea on their business which turns out is beneficial. China mobile developed a series of phone application which makes our life more convenience. Let take the “bus wait” apps as an example, the apps is to inform you when the bus will arrive at the bus stop, so you can arrange your time wisely and reduce the time wasted on waiting. (2015 sustainability report, page 17) Focusing on making customers having a better lifestyle, it launched apps call “ and- Wallet”, which is a virtual wallet, you can do payment through this apps more quickly.

 Besides of that ,company can differentiate from competitors. China mobile not only provides fast and stable network service, they also concern about the security. As many fraud cases happened in china, China mobile wants to protect their customers’ interest , so they have developed a different system to track and block the improper message and website for their customers.It is stated in the CSR report that cumulatively 558 suspects were arrested and 406 disguised base stations were confiscated by law enforcement authorities with our help in 2015. (2015 sustainability report , page 12) By comparing to the China Unicom, which is also purchasing CSR, this gives trust and confidence to customers on using their service. Customers will properly choose a company with extra values to them. This difference makes China mobile more reliable and stand up from the others big companies in China.

   Building a strong relationship with the community is a stepping stone to success. China mobile enabled phone service to all village in mainland china, also provided 4G devices and after sales service to the local residents of Dulong (a special ethnic minority in Yunnan province, receiving the “Dulong” name from Premier Zhou Enlai.)in 2015. (2015 sustainability report , page 9)People appreciate their work as they connect the minority back to the society. It may not be a profitable project for a big company, but it is far more meaningful to the local resident. Solving social issue can gain a good reputation and do help with the brand building because news spread exponentially through the internet, the positive public image is shaped easily.

   Although the advancement of technology do help with shaping our brand image , it also is a risk. If any chain of our business get into trouble because of not working as a responsible company , the huge impact will affect the reputation and also the trust of investors .The worldwide issue of that is the staffs suicide in Foxcon because Foxcon don’t care much about the pressure of their workers ,which eventually do harmful to Apple’s share price and image .Therefore doing CSR can actually prevent and lower the risk to happen.