Corporate Social Responsibility

Abstract

The purpose of this paper is to examine the concept of Corporate Social Responsibility (CSR) and its significance for Non-Profitable Organization (NPO) during economic downturn when government support significantly reduces for societal programs. This study undertakes a case of Emssanar - a health care insurance provides in the South-West of Columbia to better understand why and why not NPO should adopt CSR approach.

Abstract2

Introduction4

Discussion5

Case of Emssanar5

CSR as Risk Management6

Value Creation7

Corporate Philanthropy8

Reasons for Adopting CSR Approach9

Reasons for not adopting CSR Approach11

Conclusion12

References13

Corporate Social Responsibility

Introduction

During recent time, the notion of CSR (Corporate Social Responsibility) has received attention from both profitable and non-profitable organizations. Only few studies have been conducted to address the significance of CSR in non-profitable organizations, especially during hard economic times, when government restricts its funding. Thus, becomes imperative for non-profitable organizations to have effective strategies of CSR in place to maintain sustainability and survival of an organization.

There is no question about the effectiveness of CSR implementation as it is emerged as one of the crucial factor of competitiveness, as well as means to gain confidence of stakeholders. However, several remarks have been made CSR implementation at non-profitable organizations. Since, there are a number of instances where non-profitable organizations failed to implement CSR strategies. The common reason behind was a non-coercive nature of service or product offered, strategy intended to reinvest such resources to achieve the aims and goals of non-profitable organizations; and unclear and complex lines of accountability and ownership (Lindgreen & Swaen, 2010.

Non-profitable organizations are organizations that are not completely a commercial business or a part of the State; however, these organizations often provide solutions to public and community problems, which do not comes under local government's agenda. Non-profitable organizations include informal organizations, member-serving organizations and public-serving charities, which necessitate in-depth analysis to understand the effectiveness of CSR. For this purpose, a case of non-profitable organization - Emssanar is taken into consideration to gain better understanding of CSR at non-profitable organization. Firstly this paper offers a case of non-profitable organization, Emssanar in relation to CSR. Later section analyzes CSR as a source of risk management, value creation, and corporate philanthropy for long-term sustainability of non-profitable organization, especially when government stops providing funds and aid during recession or economic downturn. Last section offers reasons behind adoption or not adopting CSR approach.

Discussion

Case of Emssanar

To examine and analyze the research question highlighted in the section of introduction, this study consider a case of non-profitable organization (NPO) in the industry of health care insurance - Emssanar, which is located in the South-West of Colombia. This helps in assessing the impact of corporate social responsibility (CSR) strategies on NPO (Smith, 2010).

During 1993, the “lay 100” program was approved by the government of Colombia to offer an effective facility of healthcare to deprived people via introducing a demand-based model. This legislation turned out to be beneficial for several non-profitable organizations in the sector of healthcare insurance endorsed by the State (Scholtens, 2011).

In 1993, Emssanar was founded, with an aim of offering ...