Social Responsibility Case Study
Social Responsibility, the Other Choice for Corporates
1. Introduction
The shareholder wealth maximization (SWM) principle states that the immediate operating goal and the ultimate purpose of a public corporation is and should be to maximize return on equity capital. Thus, the corporate has to do whatever they can in order to achieve this goal. Nowadays, there are different views of the role a firm should play in our society and disagreement as to whether wealth maximization should be the sole goal of a corporation. The general republic, which is also corporate’s stakeholder, expects firms to practice corporate citizenship by “involving in more community and social philanthropy programs” (Sasse and Trahan, 2007), which advocates firms to take
…show more content…
Many have found that acting in social responsible way will greatly affect financial performance.
For some people, the idea of performing social responsibility seems very ridiculous for the reason that the final purpose for corporations is to maximize profit and shareholders’ value. For instance, Milton Friedman (1962) argues that the maximizing shareholders’ wealth will prohibit firms from acting in ways that benefit the society, because it’s impossible for corporates to practice social responsibility at the expense of bottom line.
However, Alexander and Bucholtz (1978) and Bowman and Haire(1975) have pointed out that stakeholders will probably view corporate social responsibility, which is a part of corporate’s reputation, as its management skill. Thus, low social responsibility will lead some stakeholders to doubt the capability of a firm and may increase the number of a firm's more costly explicit claims (J. B., Sundgren, A., & Schneeweis, T, 1988).
2.
…show more content…
However, since last century, many studies have pointed out that the corporate social responsibility will improve financial performance. In the study of the Corporate Social Performance-Financial Performance Link (Waddock and Graves et al, 1997) found CSR and financial performance has positive relationship, which supports those studies that found positive linkages in the past. They used empirical methods to test the relationship between corporate social responsibility and financial performance. The study constructed an index of CSP based on eight corporate social performance attributes rated across the Standard and Poor 500 by the firm KLD. In order to identify the financial performance, they measured return on assets, return on equity and return on sales (S&P 500 index). Finally the findings indicate that that CSP is positively related to better financial performance and this relationship is statistically significant, supporting, therefore, the view that socially responsible corporate performance can be associated with a series of bottom-line
Why Is Company Q Socially Responsible
1495 Words | 6 PagesIn this paper, I am going to discuss and explain my opinions on why company Q is or is not socially responsible. Company Q recently closed a couple of stores in high crime areas. Company Q also started offering very limited health conscious and organic products. The local food bank has contacted Company Q requesting day old food for donations. Company Q has declined the donation request due to possible fraud by its employees and has started throwing the food away.
Peter Bakker's Article 'Accountants Save The World'
382 Words | 2 PagesIn the article Accountants Save the World by Peter Bakker, one of his casual claims is that “to address current economic crises in a systematic way, we must begin to demand a return on social and natural capital as well. ”1 As a result, Bakker felt that shareholders would not recognize a company's' social accomplishments if it is not captured in financial reports. However, it could be that shareholders do not put social capital into financial statements because they believe that the only social responsibility of business is profits, like Milton Friedman. Therefore, demanding a return on social and natural capital would be ineffective if the majority of shareholders agree with Friedman's view.
Essay On Boeing Ethics
1413 Words | 6 Pages• The first is to be profitable, which provides a basis for Boeing's success. • Campbell (2007) defines eight propositions under which companies fail to meet or successfully exceed the minimum behavioral standard for corporate social responsibility. These propositions relate well to Carroll’s four factors in that the first two propositions identify that operating profitably and in a healthy economy increases the likelihood that a company will engage in socially responsible activities (Campbell, 2007). • Boeing is the world's largest aerospace company and the leading manufacturer of commercial jetliners and defense, space, and security systems (Boeing: About us, 2013).
Social Work Case Study
1833 Words | 8 PagesGG Surrey ASYE supporting statement 2 I qualified as a Social Worker in July 2016 from London Southbank University; I am HCPC registered and would like to be considered for the ASYE programme. As a newly qualified social worker I am looking to achieve and develop my social work career, including the opportunity to complete the Assessed and Supported Year in Employment (ASYE). Over the years, I have developed extensive experience of working with both children and adults from diverse social backgrounds as well as contributing positively to social care service delivery. I am reliable, considerate and have the flexibility to adapt to new roles, tasks and challenging situations; I am also able to negotiate through effective communication, and trust
Candian Tire Corporate Social Responsibility
488 Words | 2 PagesModern day businesses have to be socially responsible; actions are taken to satisfy customers who might have a cause that they care deeply. Social responsibility occurs when a person or a company acts in an ethical and sensitive way towards important social issues of the day such as economic, environmental, and cultural concerns. Many businesses have a section of their website or business literature dedicated to social responsibility. Companies proudly detail the steps they are taking to address concerns that people have with the environment and economic issues. Having companies act in a socially responsible way is necessary because their actions have a tremendous positive impact on society.
Social Responsibility Analysis: Tesla Motors, Inc.
832 Words | 4 PagesThere’s a partially alarming and partially encouraging trend rising with pollution in giant metropolitan areas. associate degree increasing variety of major cities area unit reaching dangerous levels of health-threatening pollution, that is clearly the scary part, however there’s additionally associate degree increasing variety of municipal governments taking bit by bit a lot of forceful approaches to deal with those problems, and a giant a part of that's the move to EVs. Several major cities, like Paris, have resolved to limit the amount of vehicles on the road on any given day by solely permitting cars with odd-numbered registrations plates someday and even-numbered consequent. They're additionally creating transport free throughout those
Milton Friedman's Views On Social Responsibility Of Business
1245 Words | 5 PagesSocial responsibility of business has been a debated topic for years. The ideas of different businessmen have had effects on the direction of business in this period. This essay analyses two texts, which have Milton Friedman’s arguments about social responsibility of business and John Friedman’s ideas about Milton Friedman’s, by comparison and contrast method and includes this writer’s evaluation. Milton Friedman’s text is about the effects of the name of social responsibility on a private property system including executives, stockholders, employees and customers. He gives us some assumptions and examples of their potential results and impacts on corporations to express his ideas clearly.
Social Work Case Study
1582 Words | 7 Pages2. What attributes of the effective practitioners in public welfare did you see in Tim’s dealing with Fannie Mae, Jolene, and the boys? Social welfare addresses the general well-being of individuals and families; social workers oversee national programs and systems that deliver social, health and public welfare services, which are intended to enhance the person’s quality of life and to help him or her, achieve the desired standard of living. According to Romanyshyn and Romanyshyn (1971), social welfare can be viewed as the “first line support to enable individuals to cope successfully with a changing economic and social environment and to assure the stability and development of social institutions” Tim display attributes of genuineness,
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.).
Nestle Corporate Social Responsibility Case Study
3469 Words | 14 Pages1) Evaluate how Nestlé 's approach to corporate responsibility was good for their business. Corporate businesses generally have to meet ethical, legal, commercial and public expectations. That is what is expected of the business world today. This is known as the Corporate Social Responsibility (CSR). However, businesses with short-term goal will rarely practice CSR since practicing it does not bring any benefit.
Utilitarianism In Business Ethics
1685 Words | 7 PagesUtilitarianism is a teleological ethical theory based on the idea that an action is moral if it causes the greatest amount of happiness for the greatest number of people. The theory is concerned with predicted consequences or outcomes of a situation rather than focusing on what is done to get to the outcome. There are many forms of utilitarianism, having been introduced by Jeremy Bentham (act utilitarianism), and later being updated by scholars such as J.S. Mill (rule utilitarianism) and Peter Singer (preference utilitarianism). When referring to issues of business ethics, utilitarianism can allow companies to decide what to do in a given situation based on a simple calculation. Many people would agree that this idea of promoting goodness
Corporate Social Responsibility: Profit-Oriented Or Socially Responsible?
3408 Words | 14 PagesTrying to ignore the social responsibilities might stain an organization’s image and reputation. Thus, performing social responsibility is not simply a choice; it is a need of any corporation. In the twenty-first century, businesses are in the bottlenecks where globalization, science and technology advancement and integrated knowledge are taking place in today’s society (Chan, n.d.). To gain a foothold in this economy, image and reputation play an important role to differentiate a company from one another. With good reputation, it helps firms to create competitive advantage in the business environment.
Civic Responsibility And Social Responsibility
725 Words | 3 PagesBeing 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.
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.
Examples Of Ethical Responsibility
902 Words | 4 PagesBusiness contributions to financial resources or executive time, such as contributions to the educations, arts or the community, are the examples of philanthropy. The point which distinguishes the philanthropy and ethical responsibilities is that the former are only desired and not expected in an ethical and moral help. Philanthropy is more voluntary or discretionary on the part of businesses. Communities desire firms to contribute their funds, facilities and time to the social programmes or purposes, but if the firms do not provide the desired level they are not regarded as unethical. As a part of philanthropic responsibilities it is important that managers and employees participate in charitable activities in their local communities, they provide assistance to private and public educational institutions and assist voluntary to those projects which enhance the communities’ “quality of
More about Social Responsibility Case Study
Why Is Company Q Socially Responsible
1495 Words | 6 PagesPeter Bakker's Article 'Accountants Save The World'
382 Words | 2 PagesEssay On Boeing Ethics
1413 Words | 6 PagesSocial Work Case Study
1833 Words | 8 PagesCandian Tire Corporate Social Responsibility
488 Words | 2 PagesSocial Responsibility Analysis: Tesla Motors, Inc.
832 Words | 4 PagesMilton Friedman's Views On Social Responsibility Of Business
1245 Words | 5 PagesSocial Work Case Study
1582 Words | 7 PagesVolkswagen's Corporate Social Responsibility
1858 Words | 8 PagesNestle Corporate Social Responsibility Case Study
3469 Words | 14 PagesUtilitarianism In Business Ethics
1685 Words | 7 PagesCorporate Social Responsibility: Profit-Oriented Or Socially Responsible?
3408 Words | 14 PagesCivic Responsibility And Social Responsibility
725 Words | 3 PagesVolkswagen Code Of Ethics Analysis
1155 Words | 5 PagesExamples Of Ethical Responsibility
902 Words | 4 Pages