Corporate Social Responsibility Study

The purpose of this research paper is to investigate whether Corporate Social Responsibility (CSR) is becoming a common standard in the Caribbean corporate financial community and the associated benefits as it relates to the business strategy and financial performance. Historically, corporations were expected to serve some public purpose as justification for the benefits and privileges they receive. However, since the 1970s, the view has become widespread that corporations exist solely to maximize profits and to increase shareholder’s wealth and for no other purpose Bartlett (2015). In a capitalist society it is rare to hear that one has gone into business for reasons other than to make as much money as possible. Based on this capitalistic

Therefore, corporate social responsibility is a business system that enables the production and distribution of wealth for the betterment of its stakeholders through the implementation and integration of ethical systems and sustainable management practices Smith (2011).

These three characteristics; stakeholders, ethical systems and sustainable management practices highlight the key factors as to what corporate social responsibility involves. Avery broad definition of a stakeholder is any group or individual which can affect or is affected by an organization. Such a broad conception would include suppliers, customers, stockholders, employees, the media, political action groups, communities, and governments. A narrower view of a stakeholder would include employees, suppliers, customers, financial institutions, and local communities where the corporation does its business Mayer (2016). Figure 1: Image of stakeholders within a business

Friedman believes that corporations are a species of private property and, consequently, that they have exactly the same social responsibility as other businesses. His approach to managing business takes the classical perspective. This is an approach to management that advocates allow the “invisible hand” of free market forces, with their allocative and coordinating efficiencies in resource allocation, to regulate business for society’s betterment and to dictate the actions of business. In its basic formulation, it espouses that the entire social responsibility of a business entity is to “make profits and obey the law” Bartol et al., (1998, p131). This approach to management contends that it creates the greatest good for the greatest number, and therefore the government need not intervene (Demosthenous,