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Corporate social responsibility – A competitive advantage

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To illustrate the comparative advantage, we review the business of a box making company. The company, like others, sells its products to customers who are also customers of other similar product companies. This company needs a competitive advantage to make its business clear that sets it apart from other products and is more important to customers. This advantage can be achieved in many ways but mostly it is established through competition or discrimination.
If a company can produce products more efficiently or at a better price than its competitor, then this company has gained a position of comparative advantage. This privilege can be found when the customer sees your item as different or different from others. For example, general personal use items are available in the market at a lower price than brand name items. However, brand name personal use items have a privileged advantage. Because many consumers believe that branded items are better in quality than ordinary products.
Corporate social responsibility is basically a term that describes the company’s actions that have a positive impact on the environment and society and the company seeks to differentiate its products by doing this CSR activity.
The CSR is usually a self-contained regulation of an organization that goes beyond the rules set by government agencies to regulate any industry. If a company uses recycled raw materials to make its products environmentally friendly, there is no need for government regulation, but in doing so the company is fulfilling a corporate social responsibility that that is helpful for the society. This process gives the company a pleasant advantage over the competitor.
In the present era, most companies are not only giving more importance to corporate social responsibility than in the past but are also taking it seriously. A big reason for this is the clear link between CSR and competitive advantage. For example, companies are legally required to comply with consumer, environmental and employment laws. At the same time, they have to abide by the ethical obligations attached to society and companies go through these stages of public scrutiny which prove that any unethical or unfair way of doing business. Car not being authorized.
If a company pays its employees the minimum wage officially agreed upon, the practice falls within the scope of compliance with the law, but may be outside the scope of the salary due to employees and may have a negative impact because it Wages do not compare with your competitors. Companies that do not adhere to ethical obligations while adopting business strategies lose competitive advantage.
Corporate social responsibility has become very important in recent years. Research has shown that CSR plays a vital role in building lasting relationships with business people, and the results show that any company can impress its products by paying for socially responsible activities. Improves, gains public importance and establishes a positive image especially in the target of your respective customers.
A big nurture in assets is observed inthe assets of a socially responsible company which includes goodwill, trust and good reputation. This strengthens the brand of the company and increases its value and importance.