A study of social responsibilities of corporation in sociology perspective

According to The Corporation(Joel Bakan, Mark Achbar, Jennifer Abbott) a documentary film in 2003, in the past generation, the scale of corporation is not as large as nowadays. However, it has governed in the aspect of economic, political and social force globally since American legal determination that corporation is an independent who enjoys a legal right in the late eighteen century. Under this situation, corporation becomes more closely related with our lives. When you open your bag, you can discover that most of the things including what you use and eat are produced by corporation. Corporation affects our daily life at every time.

When corporation gain a position of legal person, it has aroused a question as what this person actually is? What responsibility his needs to take? Actually, corporation has bought different impacts both benefit and harm to our society, and the problem of corporation has become a social issue. In nowadays, people are complaint that corporation do not take their social responsibility. Yet, is it really the

case? In this assignment, it is going to define and discuss the term of Social Responsibility of corporation. Also, discuss about corporation has or has not taken its social responsibility and how it affects our society.

Definition of Social Responsibility The concept of social responsibility is that corporation is the part of society, so its behaviors not only response to its owners, but also should response to society. Corporation not just makes profit, it also should benefit local community and society.

According to The World Business Council for Sustainable Development (WBCSD), it defines social responsibility as following definition in its publication Making Good Business Sense.

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large( Lord Holme and Richard Watts ).

In the report of WBCSD, it makes mention of that there will have different opinions of social responsibility from different counties across the world. So, how about Hong Kong? According to Hong Kong consumer council, it defines social responsibility as the following.

The social responsibility of businesses covers the following six principles: maintaining a high standard of business ethics; working as part of the community; protecting the environment; providing good corporate governance; and engaging in fair trade and business practices, as well as fair workplace relations. (Hong Kong consumer council).

Actually, the definition of corporate social responsibility whatever according as WBSCD or Hong Kong Consumer Council, the concept of it is that corporation should undertake the responsibility of its stakeholders, involving its investor, worker, environment, public and government.

Discussion of corporate social responsibility and how it affects society

Why corporation rejects to take the social responsibility? And why people want them to pay attention to social responsibility? What social phenomenon caused by corporation if they ignore the social responsibility? These questions will discuss as follows.

At the first, business man describes that the main mission of corporation is profit maximization. This goal takes the responsibility of its investor which they should ensure that the capital of their investor operates in effect and makes a profit. Therefore, corporation is against to bear the social responsibility.

This expectation caused by the domination of Capitalism. Capitalism is an economic system, under such system, tools of production including labor are privately owned, the goal is to create profits. Capitalism controls the economic system in nowadays. Under the domination of Capitalism, Socialism which is its opponent has been weakened. And, the development of Capitalism has brought some social problems such as class struggle, anomie, inequality and so on.

According to Karl Marx, under the structure of Capitalism, labor has

become one of the consumption of commodity. Corporation depends on the way of exploitation of their worker to diminish the production cost and increase the profit. The least of labor cost, the most their can earn. He believes that the only thing capitalists will consider is how they can use the least labor cost to feed with their worker and to produce.

Under this condition, capitalists put their investment into research and development of technology, when they want to maximize their productivity and profit. The interest of labor will be belittled because of the development of technology. It causes another problem Alienation.

According to Marxs theory of Alienation, which is a result of capitalism, is a process that worker become isolated with society around them with the feeling of indifference and hostility. Under capitalist societies, labors are not as social beings, but regards as instruments.

Marxists mean the global attainment of a new level of human society

in which we do not confront each other as atomized individuals alienated from each other, but as colleagues in a collective human enterprise.

In the case of Foxconn, its employees were commit suicide in consecution in 2010 because of its production management system Taylorism which is being abuse and trending to Alienation. Under Alienation, workers lose the decision of their lives, and being deprived of their right such as to own the goods or services which produced by them, for example, the worker of Foxconn may earn about $1,600 per month, but the selling price of an iPhone is above $4000, they are not afford to buy their product. Second, they lose their right of definition of their relationship with other worker, for example, the management system of Foxconn includes some standard as not allowed to chat with others, not allowed to laugh, not allowed to move and so on, which limits workers social activities. Therefore, their self-concept and self-value degrade. One of the employee of Foxconn describes themselves as We are a machine, no, we need to fester than a machine. That why workers cannot handle their pressures and

choose to commit suicide.

This social issue are aroused the concern of the public of corporate social responsibility. People argues that corporation is ignored their responsibilities of other stakeholders. Corporation expects to spend the least but earn the most. To complete this expectation, corporation not only exploits their worker, but also captures the resources from environment and creates environmental problems like pollution. According to the report (2010) of Putting Hong Kong on the MAP: Air Pollution Hong Kong which published by The Hong Kong University of Science & Technology, there were twenty micrograms per cubic meter of Suspended Particulate before the firework show of Hong Kong Disneyland started. It increased to about ninety micrograms per cubic meter within five minutes after the show had stared. Also, nitrogen oxides, black carbon and micro-suspended particulates content were up to 47% or above. In this case, it can seem that some social problems are caused by corporation, at least pollution. They may not against the law, but they are ignored to take their social responsibility. Therefore, someone argues that corporations should be

set apart for their source like a part of their profits to reciprocate local society, since they have controlled most of the resources from society, and led to social problems.

However, business man retorts that if corporation participate in social and political activities overly, its values will affect local society even control local society. In nowadays, government and corporation are closely related than the past. Corporation use a variety of ways and means to exchange information with the government, to obtain the government's trust, support and co-operation, with the result that promoted its survival and development by establish an external political environment. Government also needs the support from corporation to operate policy, whatever in the support of materiel or money. The reaction of corporation is one of the elements that the government needs to consider when it concludes the economic policy such as minimum wage system in 2010. Another example of the power of corporation, the issue of Henry Tang Ying-yen, who join the election of Chief Executive of the Hong Kong Special Administrative Region, gain the

support of land agent. No matter of this rumor is the true or not, it reflects the power of corporation. Therefore, if corporation participate in social and political activities, the relation between the government and corporation are strengthened. In the end, corporation may not only dominate the economic system, but also control society.

Moreover, corporation argues that it has born the responsibility to promote the quality of living standard already. The Profits tax which paid by corporation becomes the major source of government revenue. Last year, Total government revenue is near 30million, near 25% income come from profit tax (Census and Statistics Department). Also, corporation has become a partner of government. The investment on the infrastructure of agriculture, transportation and so on increased caused by the participation of corporation. These factors are the source of local society development which improves the living standard of the residents. So, they eliminate to take the social responsibility.

In fact, corporate social responsibility is the Business Ethics in

practice. Business Ethics can be defined as the value and conduct that enterprises should hold in order to ensure that commercial activities compliant with the law, whatever in the aspect of motivation, means, and consequences.

Business ethics can be defined as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the organization's culture sets standards for determining the difference between good and bad decision making and behavior. (Mary White)

Hence, it cannot to sum up as social responsibility although corporation has improved the living standard of local society, provided and created the job opportunities and the like. It is because corporation cannot ensure that the motivation and means of its commercial activities compliant with the Business Ethics, even though the consequences of its commercial activities can match with this concept. Not against the law is not equal to conform to Business Ethics. For instance, the issue of Caf de Coral intends to exploit the

salary of pay-for-lunch break, the company has not against the law, but it is inequity for the worker.

Actually, if corporations intend for taking their social responsibility, they can tend to the way of contribution. They can contribute material and money, be a sponsor, provide a place for charity event and so on. At least, the management or corporation does not need to involve and attend in these events.

To conclude, corporation rejects to take the social responsibility which caused by profit maximization under Capitalism, it leads to the social phenomenon of Alienation. Moreover, the strengthened of the power of corporation may make it affects local society even controls local society and it has born the responsibility to promote the quality of living standard already. However, corporation is ignored their responsibilities of other stakeholders such as worker, environment, public and government. It captures the resources from environment and creates social problems, therefore, they should reciprocated to local society by bear the social responsibility Actually, there are no specific answer of corporation should or

should not take the social responsibility. The only thing can be define is that social responsibility is the issue which should be concern. And corporation should be aware of their position in local society. Making profit is not the only reason of the existence of them, they also should concern their society where they live in. In addition, to tackle the social problem and improve the living standard not only is the responsibility of corporation, but also is the responsibility of public and government.

(1928 words)

Reference :
Written by Joel Bakan (The Corporation: The Pathological Pursuit of Profit and Power), Directed by Mark Achbar and Jennifer Abbott, 2003, The Corporation, Big Picture Media Corporation. Lord Holme and Richard Watts, (n.d.) Making Good Business Sense, The World Business Council for Sustainable Development. Form WBCSD- http://www.wbcsd.org/work-program/the-businessrole.aspx Mallenbaker.net-http://www.mallenbaker.net/csr/definition.php Consumer Council Good Corporate Citizen's Guide, 2005, Consumer Council. From

http://www.consumer.org.hk/website/ws_chi/competition_issues/m odel_code/2005031501.html Babylon Online Dictionary,Capitalism, (n.d.)

,2010, . From http://critiqueandtransformation.wordpress.com/2010/10/ 09/%e2%80%9c %e5%85%a9%e5%b2%b8%e4%b8%89%e5%9c %b0%e2%80%9d%e9%ab%98%e6%a0%a1%e5%af%8c %e5%a3%ab%e5%ba%b7%e8%aa%bf%e6%9f %a5%e7%b3%bb%e5%88%97%e5%a0%b1%e5%91%8a %e4%b9%8b-%e4%ba%8c%ef%bc%9a%e5%af%8c %e5%a3%ab/

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