An effective CSR requires an understanding of the social dimensions of the company’s competitive context—the “outside-in” linkages that affect its ability to improve productivity and execute strategy. These can be understood using the diamond framework, which shows how the conditions at a company’s locations Competitiveness in social context Successful corporations need a healthy society of productive workforce with education, health care, and equal opportunity. Safe products and working conditions not only attract customers but lower the internal costs of accidents. Efficient utilization of land, water, energy, and other natural resources makes business more productive. Good government, the rule of law, and property rights are essential Looking Inside Out: Mapping the Social Impact of the Value
Diploma in Business administration CSR DBA205 Cyryx collage Shahyn abd samad A1. 1. Social responsibility is define as a business’s obligation, beyond that required by law and economics, to pursue long-term goals that are good for society. This definition assumes that a business obeys laws and pursues economic interests. And this definition views business as a moral agent.
The onus/obligations that business has towards society is termed as Corporate Social Responsibility (CSR) which are categorized as Economical, ethical, legal and philanthropic. CSR is a concept which states that companies not only consider their profitability but also the interest of the society and the environment in which it operates. One of the most contemporary definitions is from the world Bank Group, stating “Corporate Social Responsibility” is the commitment of business to contribute to sustainable economic development by working with employees, their families, local community and social at large to improve their lives in such ways that are good for business and for the development. Every business house has an obligation to society, the philosophy is to give back to the society what it has taken from it, in the course of its quest for profit maximization and wealth
The government is the governing body of a local community, nation or state. Business, government, and society each has its objectives, and an understanding of these objectives will help us see how the three are related and how influential ideas in the business environment shape the business-government-society relationship. A business’ main objectives are to increase sales, keep low costs and maximize its profits. On the other hand, society 's objectives focus on the clean environment, survival, access to health care, food, shelter, the opportunity to succeed and education. Lastly, the objectives of government are to provide regulations that will promote the fair and safe use of resources in addition to protecting citizens against unethical business practices.
Why or why not? What should or could Mattel have done differently? Holme and Watts stated in Making Good Business Sense that corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. It is important that businesses act in a social responsible and ethical manner in order to give the business a good image and not create bad publicity for themselves, so that they can try and make sure to have repeat custom instead of losing the
The pyramid consists of four components, that is, four kinds of social responsibilities constitute total CSR: economic, legal, ethical, and philanthropic. The first, Economic Responibilities, is mostly directed to shareholders and the foundation upon which all others rest. It advocates the importance of being as profitable as possible, maintaining a strong positions, high efficiency etc. – and to be consistently profitable. The second, Legal Responsibilities, relates to the importance of following the laws set by the government and to comply with regulations.
h. It should also offer social welfare services to the general public. The core objectives of social responsibility of business are as follows: a. It is a concept that implies a business must operate (function) with a firm mindset to protect and promote the interest and welfare of society. b. Profit (earned through any means) must not be its only highest objective else contributions made for betterment and progress of a society must also be given a prime importance.
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. From the article “Social Responsibility and Ethics”
In simpler terms, business ethics fundamentally epitomizes the organization 's codes of corporate governance. It stipulates the morality standards and behavioral patterns expected of individuals and the business as a whole. These moral benchmarks can be perceived in terms of the microenvironment and macro environment of the business. MEANING OF ETHICS: The terms ‘moral’ and ‘ethical’ are often used equivalent to ‘good’ or ‘bad’ and as opposed to ‘immoral’ and ‘unethical’ Frankene, (1993). Ethics is defined by Miner (1998) as a philosophy of human conduct; reflecting prevailing values especially that moral
CHAPTER 1 INTRODUCTION 1.1 Introduction Previous studies (Abor & Biekpe, 2007) proof that corporate governance mechanisms have the relevant relationship with firm’s performance. Thus, to achieve the firm’s goal which is to maximizing the shareholder wealth, both management and stakeholder must have good relationship so that they can co-operate with each other. The stakeholder, such as shareholder should have the active monitoring function so that the management will do their best to achieve profit. In making sure the firm’s performance is good, the management will do their best way to get their goals for business operation. The management of the firm should have to strong management skill, especially managing the operation in order for the