Final answer:
The primary outcome of a strong CSR orientation is the retention of existing customers and the referral of new customers due to the benefits of establishing a trusted brand and reputation. A company with a strong CSR presence is also likely to see enhanced employee productivity and more proactive engagement with all stakeholders.
Step-by-step explanation:
When an organization has a strong corporate social responsibility (CSR) orientation, it is likely to see various positive outcomes as a result of implementing practices that go beyond the profit-centric focus of traditional business models. Significant benefits often include retention of existing customers and gaining new ones through referrals, greater employee productivity and performance, as well as proactive engagement with all stakeholders. However, the primary outcome that can be associated with a robust CSR strategy is the retention of existing customers and the referral of new customers.
Profits and earnings being shared among employees as part of a CSR strategy can lead to increased motivation and productivity, as employees feel directly benefited from the success of the business. Furthermore, CSR initiatives can help a company build a trusted brand and reputation, which are indispensable for attracting repeat customers and getting referrals. The rationale for CSR policies is clear: businesses aim for satisfaction and loyalty, hence securing repeat patronage and recommendations, essential for sustainable growth. For instance, a grocery store with a sterling reputation commands higher prices and customer loyalty compared to a temporary vendor at a farmer's market
In understanding the connection of corporate social responsibility to the wider scope of society, it is important to recognize how the concept intertwines with civil liberties, individual rights, and community needs. The balancing act of CSR includes considering the company's role in the larger community by engaging in actions that meet the desires and needs of the public.