As a consequence of the recent recession, firms will concentrate on Essay

As a consequence of the recent recession, firms will concentrate on reducing their costs. Therefore the emphasis put on Corporate Social Responsibility is doomed to end. Discuss - Essay Example Many imaginative business corporations went a step ahead. They integrated CSR initiatives as part of the total business strategies which produced sterling results, and created enormous goodwill for the products of the company. The range of loyal clientele gradually widened. Business leaders thus got an opportunity to learn how to align business goals with social and cultural goals. But suddenly the business world found itself engulfed in recession. It came like the avalanche and the organizations were not ready to face this serious eventuality. The wise saying goes, â€Å"When the Going gets Tough, the Tough get Going!(Ocean,1985) This is the testing time for the grit and heroism of the Corporate Sector. Toby Radcliffe comments upon the issue thus: â€Å"Global recession, embedded in the financial sector, is creating an environment of cost-cutting and streamlining. For leading international saving and wealth management groups, the current economy has produced a particularly challenging environment in which to operate. It has also produced a challenge for sustainability.† When a child is sick, one tends to take care of it more. Ethically speaking, corporate social responsibility is an important part of the business establishment, during recession. The case for CSR is the truest, even when the economy is passing through a period of crisis. To prioritize business in the face of recession, is a prudent function. That approach is just; no questions about it. To think of pruning the CSR budget while things are comfortable, is harmful from the long-term perspective of the growth of an organisation. Funds earmarked for CSR, in addition to direct donations to Non-Governmental and philanthropic organisations, are linked to HR and training programmes, experimental and innovation budgets, promotional and marketing budgets, research and other non-core activities. The management thinks of the cuts in these areas first. But it is again