A description of corporate social responsibilities of a business organization
Proponents argue that treating employees well with competitive pay and good benefits is seen as a socially responsible behavior and therefore reduces employee turnover.
It will increase the chances that they will have a future and reduce the chances of increased governmental regulation. The law requires only disclosures, but the added transparency is a step toward holding U. In essence, this model suggested that the needs and desires of society could best be met by the unfettered interaction of individuals and organizations in the marketplace.
What is the purpose of corporate social responsibility?
This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States. This argument is particularly relevant in a globally competitive environment if businesses in one country expend assets to address social issues, but those in another country do not. Proponents argue that treating employees well with competitive pay and good benefits is seen as a socially responsible behavior and therefore reduces employee turnover. Companies can leverage this type of CSR in various ways, though one of the most popular ways is by matching gifts their employees make to companies. One view, held by critics of the corporate world, is that since large corporations create many social problems, they should attempt to address and solve them. Nature of business[ edit ] Milton Friedman and others argued that a corporation's purpose is to maximize returns to its shareholders and that obeying the laws of the jurisdictions within which it operates constitutes socially responsible behavior. Many companies produce externally audited annual reports that cover Sustainable Development and CSR issues "Triple Bottom Line Reports" , but the reports vary widely in format, style, and evaluation methodology even within the same industry. Indeed, at the same time that many of them were giving away millions of dollars of their own money, the companies that made them rich were practicing business methods that, by today's standards at least, were exploitative of workers. In this scenario, customers can observe the company's commitment to CSR while increasing company sales. The concept of social responsibility in the scientific literature is extremely complex, involving corporate citizenship, sustainable development, stakeholder management, environmental management, business ethics, and the results of corporate social performance. Some of the drivers pushing business towards CSR include: 1. That is, we look at the role companies, and large corporations in particular, play as active stakeholders in communities.
If so, how? Let them feel like they have a voice.
Importance of corporate social responsibility
Social license to operate[ edit ] Social License to Operate can be determined as a contractual grounds for the legitimacy of activities and projects company is involved in. The sections that follow provide additional details related to the corporate social responsibility construct. One example can be seen in Unilever's Project Shakti in India. Destruction of the environment can ultimately lead to reduction of resources, declining business opportunities, and lowered quality of life. As a result, this increases competition among firms since customers are aware of the company's CSR practices. February Learn how and when to remove this template message Appropriate CSR programs can increase the attractiveness of supplier firms to potential customer corporations. Environmental Leadership Corporations can demonstrate environmental leadership in several ways. Carrying out superficial CSR efforts that merely cover up systemic ethics problems in this inauthentic way especially as it applies to the environment , and acting simply for the sake of public relations is called greenwashing.
Some of the drivers pushing business towards CSR include: 1. Many corporations work on prosocial endeavors and share that information with their customers and the communities where they do business. One example can be seen in Unilever's Project Shakti in India.
Importance of social responsibility
Benefits of Corporate Social Responsibility For Employees Employees like working for a company that has a good public image and is constantly in the media for positive reasons. In return, global corporations will have sustainable business models that look beyond short-term growth forecasts. Sustainability is the practice of preserving resources and operating in a way that is ecologically responsible in the long term. Big business was criticized as being too powerful and for practicing antisocial and anticompetitive practices. Finally, some argue that those in business are ill-equipped to address social problems. Exhibit 2 classifies some major stakeholder groups into primary and secondary categories. Between and the business world gradually began to accept additional responsibilities other than making a profit and obeying the law.
Stereotypical thinking is still extremely vital, often raising unilateral requirements for the organization to fulfill the socially responsible behavior concept in the hope that it will pay off.
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