2.3. Specific Theories of Corporate Social Responsibility
2.3.1. Stakeholder Theory
The stakeholder theory gives a picture of how businesses are supposed to function. It gives an indication of how to create value for stakeholders of a business entity; suppliers, customers, employees, local communities, banks, financiers, and shareholders. For a business entity to be truly successful, their interests have to be given full consideration. The stakeholder theory originated from Edward R. Freeman’s (1984) book on “Strategic Management: A Stakeholder Approach”. In the book, it was emphasized how best management can be reflective of various stakeholders. Freeman identified two kinds of stakeholders which he referred namely to as the “narrow definition”
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This takes place through supporting community initiatives such as education, health, microcredit, and so many others.
2.3.3. The Relational Model of CSR
In the contribution of their models, all other models in CSR have propounded government involvement in CSR, however, Albareda, Ysa, and Lozano, (2004), as well as Midttun, (2004) have attempted to give a definition of the role-play of government in the concept of CSR. This they attempted by designing separate models that define the relational dimension of governments, organizations, and societies in a whole
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It made its emphasis on the fact that countries were on the verge of new discoveries as the traditional welfare roles were becoming too burdensome and hectic to curtail and societies are getting more and more enlarged due to population increase. Hence, the shared responsibilities by; “government institutions and private organizations”, “government institutions and societies”, and/or “private organizations and civil society organizations” is necessary for meeting such complex societal challenges. Mendoza’s analysis and results were drawn from the paradigms of welfare theories in the 20th century which centered on the analysis of governments’ public sector. However, sighting from Albareda, (2004) and Lozano et al., (2005), the Albareda, et al., (2008), framework (see figure 2, Appendix 1) can be viewed from two separate
The bridge to prosperity: The Canadian welfare state. Through the years, Canada’s security and prosperity it’s one of the most important topics between its citizens. Introduced in the Second World War, the “welfare state” aims to give an equality service, a minimum income, protection for the elders, unemployment and disabilities as in sickness. For some, the decisions made were debatable given the tough times: pogey, the Medicare program and the Canadian Pension Plan (CCP) represents an ideal standard of living an economically healthy life moreover its one of the most important values the Canadian society is built on.
A 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
However, they do not understand the condition of society is determined by the performance of public service and bureaucracy is needed in order for them to receive the benefits that are expected. One factor of social change is an increasing population. As population grows, so does the government and its bureaucracy with its programs that contribute to healthcare, transportation and education. Assistance in such areas helps those in need to have the same opportunities as other citizens in society for equal
The 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.
To provide such goods as education, sanitation and parks, the government taxes their citizens to afford the public goods. Since the public goods are funded by the taxes of the citizens, then all the citizens have the right to benefit from them. In addition, the government establishes rules and regulations that benefit society in maintaining the environment safe from harm. Not many governments promote equality, but after gaining prominence in the twentieth century, promoting equality is the third major purpose of government in many different places. With the purpose of promoting equality, the government’s goal is to establish the concept of welfare state, civil rights and equality under the law.
Making a Difference in My Community What are your long-term personal and education goals? How has knowledge or awareness of your own culture and other cultures affected your understanding of yourself? What key experiences with your own and/or other cultures influenced your goals and your interactions with others? Please provide specific examples.
In a competitive world market, businesses must have a thorough understanding of the processes and systems used within the company in order to determine whose interests need to be taken into account when implementing policies and/or programs. This stakeholder analysis is integral to growth and development. For large corporations which have multiple divisions and companies within their corporate structure it is essential to look at all aspects of the business model to identify stakeholders. Establishing the given responsibilities of the various divisions and the direct role they play in the economic success of the firm must also be considered. Many of the largest and most lucrative corporations in the world are those related to supporting military
In this assignment I am going to discuss the stakeholders of two contrasting business’. Sainsbury’s: One important stakeholder is owners. The owners of Sainsbury’s they have it in their best interest to make the business as successful as possible by setting aims and objectives for themselves and their employees. They want to make the most profit they possibly can whilst keeping their customers and suppliers happy.
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.
Stakeholder analysis Stakeholder are entity that will affect the organization actions, objectives and policies. There are two types of stakeholder which is internal stakeholder and external stakeholder. The McDonald’s stakeholders are customers, suppliers, employees, managers, government, local communities and pressure groups. Customers Customers are the external stakeholders of the company, no customer mean zero profit.
Every stake holders has its own needs and demands from the organization. Every stakeholder which are directly attached to the company requires the information as it required and his role. These are the persons, groups or other company which have legitimate interest in the company and its functions. These persons or the group directly or indirectly communicate with the company. Stake holder analysis is done below to understand the needs and demands of the stakeholders.
The 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
How 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.
3. Stakeholders: Definition:A person, group or organisation that has interest or concern in an organisation. Stakeholders can affect or be affected by the organisation 's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources. Not all stakeholders are equal.
Stakeholder 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.