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Introduction
The purpose of this report is to elucidate the topic and issue of corporate social responsibility.
The term has been analyzed from different perspectives. The positives of the adoption of the
social corporate responsibility for a business have been highlighted in the report. Likewise, the
negatives of the adoption of corporate social responsibility has also been provided in the below
sections of the paper. The report begins with a brief discussion of what Corporate Social
Responsibility refers to in general. The benefits to the society that are attained by the adoption of
it have been elaborated in certain parts of the report. The various arguments by experts of the
management industries have provided and cited throughout the paper. The report ends with a
brief discussion of the key findings of the paper and the same is presented in the conclusion of
the paper which also ties the contents of the paper together (Benn 2006).
Corporate Social Responsibility
Meaning of the Term Corporate Social Responsibility
Corporate social responsibility can be defined as the act or an obligation of an often organization
which they extend towards the society essentially to win the long term goals and trust. Corporate
social responsibility is not to be confused with laws and economics which govern an economy.
Rather, it is an ethical behavior of an organization which aims at improving the life of the work
force and the immediate other stakeholders. Thus, a company which is conducting its various
ventures and business activities in a ethical manner that is of particular interest to the wider
community as well is essentially a company which is adhering under the stipulated conducts of
being corporate social responsibility (Eero 2006).
Perspectives of Different Stakeholders involved
The organisations of the current era have become particular of the fact that their organization
would be followed by the government and the well informed and communicated masses if they
do not follow the generally accepted norms of the industries. These actions and norms of the


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company implies that their ethical values do not let them cross the boundaries and they conduct
their means to beings prosperity to all groups and no unfair means are utilized for any of the
business activities and ventures. The companies and organization across the globe have also
relied upon the famous theories like Utilitarianism amongst other which specifically relates to
extending influence on the thinking abilities and is also affected by the social efficiency criteria.
On the other hand, there are organisations which gives due relevance to moral equality and right.
They emphasize more on individual freedom; such organisations are often seen implementing an
approach of following a strong and rigid code of conduct and rules to ensure that equality is
assumed at all levels of the organization. It hence becomes difficult to introduce the concept of
customer service into the picture in such organisations as the managers often feel lack of
delegation in taking spontaneous actions with an objective of pleasing the customer and that
moment can become a moment of truth for the end customer.
Thus, the key identified stakeholders have been identified are in the internal workforce or the
internal employees of the organization. They often believe in getting hold to their respective
powers within an organization and they use it often to choose their leaders amongst other
important activities (Yencken 2002).
Positives of Corporate Social Responsibility (Organization point of view)
One of the straightest arguments which the organisations present is that Corporate Social
Responsibility essentially requires conducting ethical business practices and narrows the
possibilities of frauds and other scams that generally arise in the internal environment of the
organization. It also creates a healthy image and portrait of the company and the end customers
perceive it as a good company which further leads them to invest and promote the growth of
such organisations. As a result, the company is in a much better position to get a good return in
investment as they get the support of the public funds which acts as an increasing source of
capital for them with increasing time or the market presence.
The company is also seen making utilization of this positive image in front of the customers.
They are often seen advertising that some part of the revenue generated when the product sold


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would be contributed to philanthropically trusts. This way it creates an indirect opportunity for
the end customers to promote the welfare of the needy people which ultimately boost the
presence of the company itself (Starik 2004).
Negatives of Corporate Social Responsibility (Organization point of
view)
One of the major negatives of Corporate Social Responsibility is that it becomes an essentially
expensive and a costly affair for the organization as they customers now are well informed and
all the actions of the company and the organisations are closely followed by the audience via the
means of Internet, Media, Social Media etc. thus, whatever the company claims to be doing or
have done is required to be absolutely genuine in all regards. Also, the organization is also
resultantly increasing the base of its stakeholders as a new division of environmental cautious
and social stakeholders rise which expect the repetitive support of the organisations in order to
continue with the their existing good presence. This requires the organization to plan accordingly
to their budget constraints and see how much of their resources would they allocate for social
causes, what would be distributed to the shareholders as the dividend, what would be given to the
factors of production i.e. wages and the salaries of the employees and what would they keep in
the shape of accumulated profit with them. Any possible deviation which does not match the
expectations of the stakeholders involved is likely to bring negative influence for the concerned
organization (Israr 2006).
Ethical Organizational Behavior
Though there are many certain laws and rules that have been initiated and implemented over a
number of years, the most common ones that applies to a commercial business enterprise are
highlighted below:
The company should conduct its business with the objective of maximizing its profits and
staying within the basic rules of the society.
The shareholders of the firm must act as the principals and the managers or the
employees of the company should act as agents for them to achieve the objective of profit


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maximization for the organization. The agents or the involved managers must also work
for the best interest of the society and not for the shareholders and themselves only.
The profit making ability of the firm is seen as the net contribution that they are making
to the social good as it directly affects the gross Domestic Product of an economy.
The corporate resources that are used by the agents with the objective of promoting social
growth in the society are to act as undemocratic in their nature (Quist 2004).
Arguments and Examples to support Corporate Social Responsibility
During the times of the Industrial Revolution period, the factory work was the main primary job
available with the human work force and labourers. This caused the business owners use
oppressive means to extract work from the labourers often leading them to work under abnormal
circumstances and getting less payment. This made the notion of Workers Union to appear into
the sight and the same is being now viewed as a necessary right of the workforce. This argument
has led the companies behave under a normally code of conduct accepted by the contemporary
work force.
There are other arguments which propels that adoption of Corporate Social Responsibility by an
organization essentially becomes a win-win situation for the company as it involves paying the
cost for improving the image of the company in the eyes of the public and hence affects the end
customers and the official authorities. The government and authorities are most likely to stop
intervention in the affairs of the company as it is perceived to do good for the society and the
concerned stakeholders always. Such is the image of the company. Thus, as the organization
invests in marketing affairs to win more number of customers, a similar case Is evident with
Corporate Social Responsibility. The business is eventually paying a price of its benefit. That is
the reason they see not much relevance in the concept of Corporate Social Responsibility.
Another favoring point towards the Concept of Corporate Social Responsibility states that the
organization adopting it, would have to do something positive about the society in order to create
positive news and awareness in the public. If such companies come forward on a daily basis and
promote welfare of the society, this would ultimately lead to a prosperous human civilization
benefitting the eternal mankind.


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On the contrary, the experts opposing the concept of Social Corporate Responsibility argues that
the motive of any organization is never too far away from making profit in their respective
bottom lines. For Example- If a company spread awareness that they are going to concentrate on
healthier food items, then they are actually targeting their pointer on two marks respectively, one
would be the corporate socially responsible and thus offering the better quality food products and
other points would essentially be targeting the health conscious section of the society which is
their target market for distribution of this particular brand (Gandossy 2004).
A similar kind of action is evident from the car manufacturers which appeal to the households for
have produced fuel efficient and eco friendly cars. They are actually not doing anything else than
targeting those environment sensitive customers. They also target the consumers on heavy
machineries claiming that they are less environmentally hazardous to the concerned society and
the communities. The questions that should be however asked should be directed towards the
credibility if such claims. An end customer at his level can possibly imitate a preliminary
research via his accessible and available means, but is not necessarily expected to reach the truth
of the matter which indicates that whatever the company and the business is claiming is
essentially the truth. The point that has been understood so far from the above discussion implies
the significance of the nature of the organization and the industry in which it operates. It is
contingent upon the complexity of the organization that should enable them to take the decision
of whether they should adopt the notion of corporate social responsibility or not. If the
organization has achieved substantial growth and has reached international levels to capture its
respective market, then it is likely to adopt the notion of Corporate Social Responsibility as that
strengthens the global image of the company. It also acts as a means for further growth for the
company and the concept of Social Corporate Responsibility then serves as an additional
platform for the development of the market in anew sphere and horizon (Elkington 2006).
Conclusion
Corporate Social Responsibility like any other substantial concepts has it own set of positives
and negatives. The important ones amongst the positives include the good image of the
organization that is portrayed in the campaigns. This enables them to seek the support of the


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masses and a dual advantage and effort are applied for the prosperity of the business which is
acted upon both by internal and external forces. The major points amongst the negatives of the
adoption of Corporate Social Responsibility for the business is that of the cost involved for the
company in promoting indirect measures which might not assure and bring them direct return on
investment like some of their current running measures. Also, once the company has done some
considerable act for the welfare of the society, the masses and the government tend to behave
ironically and become complacent that the business would repeat such favorable acts in the near
future as well in order to continue portraying their good image to the general public and masses
(Dunham 2007).
References
Benn, S., Dunphy, D. & Griffiths, A. (September 2006), Leadership skills for Corporate
Sustainability: An Integrated Perspective. Australasian Journal of Leadership Management
13[3], 156-165
Dunham, D. & Kelegama, S. (2007). Does Leadership Matter in the organization Reform
Process? Liberalization and Governance in Global World, 1989-93, World Development 25[2],
179-190
Eero Palmujoki, E. (February 2006). PublicPrivate Governance Patterns and management
Sustainability. Journal management, Development and Sustainability 8[1], 1-17
Elkington, J. (2006). Governance for Sustainability, Change management: An International
Review 14[6], 522-529
Gandossy, R. & Sonnenfeld, J. (2004). Leadership and Governance from the Inside Out. New
York: John Wiley and Sons.
Israr, S.M. & Islam, A. (2006). Good change and sustainability: a case study from Pakistan. The
International Journal of organization Planning and implementation 21[4], 313-325.


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Quist, J. & Vergragt, P.J. (2004). organisation Transformations and System Innovations Towards
Sustainability: Relevance for Governance?
Starik, M. (August 2004). Toward a Multi-Level, Multi-Systems Approach to Sustainability
management and Outcomes. Innovation: Management, Policy & Practice 6, 167-169
Yencken. D. (2002), change for Sustainability. Australian Journal of Public Administration
61[2], 78- 89.
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