Csr And Stakeholder Theory
Corporate Social Responsibility and Stakeholder Theory
The concept of corporate social responsibility as discussed earlier means that organizations not only have responsibilities to earn a fair return for investors and comply with the law, but also have moral, ethical and humanitarian responsibilities. Traditionally, a corporation is viewed bearing its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups, which
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At its simplest level, stakeholder theory has been proposed as an alternative to stockholder-based theories of organizations (Freeman, 1994).
CSR AND INSTITUTIONAL THEORY
Institutional theory suggests placing CSR explicitly within a wider field of economic governance characterized by different modes, including the market, state regulation and beyond. While CSR measures are often aimed at or utilize markets as a tool, institutional theories of the economy also see markets themselves as being socially embedded within the wider field of social networks, business associations and political rules. In particular, many of the most interesting developments in CSR today play themselves out in a social space of private, but collective forms of self-regulation.
Integrating Business with Society
Mapping Social
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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
Flash Flood In Birmingham
633 Words | 3 PagesLindell et al. divide stakeholders into “social groups, economic groups and governmental groups” (2007, pg. 21). Among social groups are the local households, private sector (religious, NGOs and NPOs). Economic groups are the businesses in the community. “Public utility companies are critical business stakeholders and their services include: electricity, water, sewage treatment and disposal, solid waste management, and telecommunications”
Does Globalization Contribute To Sustainable Prosperity Essay
836 Words | 4 PagesMany corporations contribute to sustainable prosperity for all people such as Syncrude. They provide thousands of jobs every year to help people gain wealth. Lots of other companies have the same types of affects. These companies give all people chances to create wealth and opportunity. Economic prosperity is important because if you do not have it you will
Richard Graeter's Stakeholders
259 Words | 2 PagesA Stakeholder is any individual who has a vested interest in a business and is affected by the organisations decisions and strategies (Pride, Hughes & Kapoor 2015, p. 10). Therefore, the people most affected by Graeter’s decisions to take a long term view of the business rather than aim for short term profits are the family members who have a stake in the business. At the present, Richard Graeter II (CEO), Robert Graeter (vice president of operations) and Chip Graeter (vice president of retail operations) manage the business and are responsible for all the decisions regarding its operations. Graeter’s management team have chosen to forgo the opportunity for short term profits by adhering to the traditional manufacturing process used by Louis
Stakeholder Salience Theory Case Study
1043 Words | 5 PagesThe Stakeholder Salience Theory, created by Mitchell, Agle and Wood, are based upon the combination of the three relationship attributes to generate general types of stakeholders. These attributes include: Power; Legitimacy; Urgency. “Stakeholder salience” is defined as the degree to which managers give priority to competing stakeholder claims. Therefore if a stakeholder consist of all three attributes, he/she/it will be of most importance and will have more rights and privileges than a stakeholder that consists of only one of the three attributes. As seen in the picture on the right, you can differentiate between the different types of stakeholders, according to where they get placed given the attributes they consist of.
Walt Disney Company Triple Bottom Line
1630 Words | 7 PagesIn this highly competitive world, money is one of the most significant factors for people to survive because people use money to satisfy their desires such as clothes, food, and medicines. A company will gain profit from the amount of money that people used, but only profit cannot make company to be sustainable. Hence, every corporation should be concerned about the triple bottom lines which can lead company to be sustainable. The Triple Bottom line or TBL was created by the founder of British consultancy called sustainability, John Elkington since 1994 (economist, 2009). The triple bottom line is separately in three categories, including profit, planet, and people.
Volkswagen's Corporate Social Responsibility
1858 Words | 8 PagesIt 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.).
Tesla Social Responsibility Analysis
715 Words | 3 PagesCorporate 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.
Advantages And Disadvantages Of Economic System In China
1825 Words | 8 PagesINTRODUCTION An economic system is defined by the various processes of organizing and motivating labour, producing, distributing, and circulating of the resultant of human labour, such as merchandise and services, consumer durables , machines, tools, and other technology used as intake for hereafter production, and the infrastructure within and through which production, apportionment , and circulation occurs. These arrangements are intended by the political, cultural, and environmental conditions which they co-exist together (Gemma; 2014). In a command economic system or planned economy, the federal government controls the economy by deciding how the state would use and distribute resources. The government also regulates prices and wages
Essay On Wealth Inequality
1815 Words | 8 PagesAnd assets being the stuff that you own: your car, your house and your cash money is also an asset. It is the job of the government, leaders and citizens to ensure that the wealth and income is distributed equally among the population. However, when this fails due to corruption, discrimination among other causes the country is unable to move forward economically, further leading to poverty and civil unrest and other consequences. Surprisingly, statistics show that wealth inequality is not limited to only developing countries, but also some of the most developed countries. America, Israel and Greece are one of the countries with the worst income inequality.
Volkswagen Code Of Ethics Analysis
1155 Words | 5 PagesDavis (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.
Stakeholder Theory
997 Words | 4 PagesThe History of Business Ethics and Stakeholder Theory in America Ethics play a huge role in the global business field, since considerations have to be made on moral practices, values, and judgments that govern the direction and overall success of the company. Consequently, over the progression of history, managers, entrepreneurs, and stakeholders at the helm of organizations have always had the mandate of making moral resolves on matters of ethics. According to Hunter (2003), such an approach to ethical behavior prompts a substantial growth in the organizational corporation, as well as maximizing business profits, and creating a reputable company image (Cutler, 2004). Notably, the overall performances of organizations that take part in unethical
Starbucks External Stakeholders
1295 Words | 6 PagesHow would the platforms interact with the different stakeholders? Accordin to Freeman (1984), stakeholders are anyone that can influence or be influenced by the company’s actions. And there are two types of stakeholders, including the primary and seconday stakeholders ( Clarkson, 1995). For Starbucks, its major stakeholders include employees, customers, suppliers and stockholders. Starbucks’ performances and business strategies could also affect the general public and the society.
Stakeholder Analysis Of Uniqlo
730 Words | 3 PagesStakeholder define as a person, group or organization that has interest or concern in an organization. Some examples of key stakeholders are shareholders, employee, suppliers, customers and government. Not all stakeholders are equal. A company 's customers are entitled to fair trading practices but they are not entitled to the same consideration as the company 's employees.
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Ethical Issues In Child Labor
2393 Words | 10 PagesHere you look on the difference between benefits and harms for the society and if the benefits are greater than the decision or an action is considered as ethical, if lower – unethical. Here it is important to identify the stakeholders and an effects on them from actions or decisions of a company. “You can think of a stakeholder as a person or organization that can affect or be affected by your organization. Stakeholders can come from inside or outside of the organization. Examples of stakeholders of a business include customers, employees, stockholders, suppliers, non-profit community organizations, government, and the local community among many others.”
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