Building a Positive Image of a Company

Module Paper 2

A good business doesn't exist in isolation nor is it simply a way of making money. The only automaker among the top 25 companies in the world in corporate social responsibility (CSR), Ford has demonstrated us that the key to success is acting socially responsibly as last month Ford Motor Company U.S. sales totaled 136,710 vehicles in January, a 7 percent increase versus year-old levels.

Building a positive image of a company that gives back to the community has undoubtedly created a number of business benefits. Over the past year, Ford has a very steady increase in sale and has its dealers across the whole United States. Even in such an economic down turn Ford is still performing relatively well. The reason is that through CSR Ford has established its brand with strong environmental and ethical principles which give Ford a good reputation to attract customers. As Ford volunteers help feed the hungry in local communities during season of giving and sharing, people see Ford as a portrait of caring the public. It generates positive press coverage which is a good method to market the brand. Developing CSR policies has also boosted Ford's profile by differentiating its brand with other automakers. Ford has won quite a few awards, which have been good for it in PR terms, and it has also been able to use the award logos on its website. These have become part of Ford's visual identity which people will be familiarized with. Entering awards can be a time commitment, but they can also be a fantastic way to audit and benchmark Ford's business against others.

Recruitment is another area in which business can benefit from CSR. Ford works with its suppliers to improve workplace standards and conditions as well as emphasizes the importance of employee health and safety throughout the world. This depicts a caring image and creates a healthy, safe and warm working environment for Ford's employees. Hence, it makes Ford easier to recruit competitive employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining. A company that has a responsible and ethical approach will motivate its employees to work harder and be more productive as employees find that besides making profit, their company is working under a good motivation of benefitting the world.

By engaging in CSR, however a company's profit is not maximized. This is a way of being irresponsible to the shareholders, as it diverts corporate assets away for activities which do not produce profit immediately or directly. Too much CSR activities will put a huge levy on shareholders, undermining their prosperity.

After all, it is indeed important for companies to embrace CSR, for it is not only about being altruistic and giving back to the community but a way of building and maintaining their business strategies. Through CSR, Ford has built up a golden reputation as a