A firm’s assignment of CSR begins with economic responsibility and narrows up with legal, ethical and other responsibilities, such as sound judgment. What was found as ethical pursuance and sound judgment in Carroll’s model, it is now indispensible because of the fact that ethical responsibilities are required as much as the economic and legal responsibilities in today’s environment and prerequisite for success. CSR can be seen as a rationale on moral and economic grounds, often companies adopt CSR as a defensive strategy though it can be a part of corporate environment and could be used as an aggressive strategy. (Werther and Chandler, 2006) CSR has a range of participants for sustainability and a positive role in the society (Blowfield & …show more content…
3 Pro-activity: that measures the activity with external demands.
4 Voluntarism: the firm’s decision to participate in CSR.
5 Visibility: is how the stakeholders react to the CSR activities in response.
On the whole the management theory abridges the socio-economic factors with the performance of the organization. CSR is important for the multinationals to perform in foreign countries because of the growing competition and other challenges that are faced by an organization; the management theory is used as a tool to encounter such challenges ( Ismail, 2009). Donaldson (1989, cited in Secchi, 2007 :359) CSR also acts upon the firms managerial decisions when there are problems such as clashes, protests and strikes, these lay down the moral values, above profit maximization. Managerial theories performance depends on stakeholders trust, co operation and acceptance. Garrige and Mele ( 2004) Detomasi( 2008) were all of a view that social power drives the social responsibility as the corporation is a corporate citizen, who has investment in the community. Davies (1960) stated that CSR is a political power and therefore must be used responsibly as a business is social institution; its power comes from both within and outside. Detomasi (2008) stated that firms base their CSR policies keeping the local political structure in view. Firms have to encounter the global economic pressure, the local political structure and the CSR
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Business operates within a society, therefore any action and decision made by the business should be made considering the impact of economic and social values. Stakeholder approach means better management and a more socially responsible behavior by the firm. The stakeholders approach sees individuals in a business acts altruistically, it is interrelated though independent for self creation and community creation, stakeholders approach addresses both collective and ethical theories, for a collective social demand and the right thing to achieve a good society. Mitchel, Agle and Wood (1997) emphasized on the interests of the stakeholders, Freeman and Phillips (2002) explained the fiduciary duties towards stakeholders. Jeremy Moon (2004) defines CSR as a combination of corporate citizenship, sustainable business and environmental responsibility; it is accountable to social, environmental and ethical issues both in term of corporate and the national environment. The neo liberal writers see it as voluntary, but some neo liberal see CSR as an obstruction and diversion from a business primary concern, i.e., profit maximization, yet most neo liberal writers maintain the point of view that, Friedman was actually correct. CSR in the long run can be beneficial to the organizations it prevents from unnecessary government intervention and
The analysis will determine how the organization will enhance their responsiveness of leadership will affect the relationship with society. The analysis will determine the health of the organization through the triple bottom line of: people, planet, profit. An implementation of a strategic plan will be devised to practice corporate social responsibility that will enhance the relationship between the organization and stakeholders. An evaluation of policies and practices will determine the impact they may have on internal and external stakeholders’ operations of responsibility. Analysis of Issues Personnel
It has no relevance for the world of business. As Friedman says himself “There is one and only one social responsibility of business - to use its resources and engage in activities designed to increase its profits as long as it stays within the rules of the game, which is to say, engages in open and free competition without deception and fraud”. Friedman believes that it is irresponsible of a company to divert profits for social responsibility activities. Social responsibility is purely a governmental issue and is of no concern to businesses. Essentially, Friedman says that the government set out the social responsibilities of business, e.g. tax, and as long as the company complies with these rules that should be
Retrieved from http://dx.doi.org/10.1016/j.orgdyn.2015.02.200 Carroll, A. B., & Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice. International Journal of Management Reviews, 12 (1), 85-105. doi:10.1111/j.1468-2370.2009.00275.x Chan, L. Y. (2014). Corporate Social Responsibility of Multinational Corporations.
Leadership and ethics Name Professor Course Date Some of the ethical issues that management may need to address include corporate social responsibility. This refers to the operation of a business or organization in a manner that takes into consideration the environmental and social aspects created by enterprise. It implies the commitment to create policies that include responsible practices in the undertakings of the entity. Corporate social responsibility policies serve as self-regulatory measures for the organization in monitoring and ensuring that it complies with ethical standards, regulations and societal norms.
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).
1. Read the following chapter and comment on the connection between social responsibility and the concepts of positive and negative liberty. Refer to at least two ethical philosophers mentioned in the article. Include the concept of neo-liberalism.
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders . The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.
Involved in CSR activities are proven to create good image and reputation for a company. In the long run, it helps a company to increase shareholders’ value and achieve sustainable business
Being socially responsible is the idea that businesses should balance profit-making activities with activities that balance benefit society; it involves developing businesses with a positive relationship to the society which they operate. Social responsibility is an ethical theory, in which individuals are accountable for fulfilling their civic duty but the actions of an individual must benefit the whole of society. Social and civic responsibility should be an automatic thing that should come to people’s minds when trying to improve society. The main concept of social responsibility is that every individual, has to perform so as to maintain a balance between the economy and the ecosystems.
Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders. The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.
One key CSR strategy was stakeholder involvement in socially responsible causes and the power exerted by organizations in socially relevant causes according to Claydon & Doyle (as cited by Appiah, 2016). Greenwood (as cited by Appiah, 2016) said that employees were the 41 most essential and primary stakeholder groups; hence, employee involvement is likely to lend legitimacy to the causes taken up by organizations. Stakeholder theory has been used to inform research in the hotel industry, where stakeholder groups are classified as internal or external. Most organizations, including hotels, have a complex structure according to Jones & Lockwood (as cited by Appiah, 2016) with various types of engagements or activities. Those undertakings in the hotel industry included accommodations, meeting space rentals, restaurants, leisure, and community involvement.
Previously the manager’s role was to think only about financial profit and loss of the company. In 21st century the organization’s performance has been analysed on triple bottom line tool. The triple bottom line tool checks the effect of business activities on financial performance, social and environmental performance (Stenzel, 2010). The managers need to change their role and transform themselves into moral leaders to fulfil social responsibility towards the society. Carroll (2000) also suggested that the corporations have four business responsibilities towards the society.
If a company undertakes CSR then it helps to build a positive image in the market and it ultimately leads in benefits earned by the company. CSR activities not only help the companies to grow, but also due to social welfare the most disadvantaged group of a society gets a fair share in the world