Avoiding Crises by Making Profitable

Why is social responsibility a major problem facing organizations and management? Global interdependence demands that organizations and management make social responsibility, ethical behavior, ecological protection, and economic development a priority. When a business is socially responsible it establishes that it cares about people, global sustainability, and the community as a whole. A lot of businesses have been

In today 's economic and social environment, issues related to social responsibility and sustainability are gaining more and more importance, especially in the business sector (Webfinance. 2014). Business goals are inseparable from the societies and environments within which they operate. Whilst short-term economic gain can be pursued (Catalyst Consortium. 2002), the failure to account for longer-term social and environmental impacts makes those business practices unsustainable. In our current society, the Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment and anti-corruption (Corporate Watch. 1996 –

And those that operate without concern for employees' rights, safety and welfare of individuals will not be attractive to the employees, and their employees will not work proactively for them. Those that developed and grew at the cost of the environment will have built for themselves an awful image to society and will lose having a good reputation with consumers. A businesses image is as important as the brand: those that pay no attention to CSR will lose their foot holding in the global market and eventually cease to exist.

Based on my interpretation of CSR, I see it as a voluntary obligation that companies have promised to their stakeholders to fulfill by improving, or at least not harm, the environmental and social wellbeing. When companies engage in CSR, they voluntarily promise to, for example, carry the responsibility to protect the environment and take actions against bribe or other corruptive activities related to their business. It certainly has some positive influences to specific areas based on my knowledge gained from other classes; nevertheless, when judge CSR in the context of total impacts on our society and environment, it is obvious that CSR has failed its mission to lessen the negative impacts of business based on the evidences that provided by the author. Also, since there is a strong positive relationship between CSR behaviors and consumers’ reactions to a firm’s products and services, it seems to me, now, that CSR for the most companies is just a fancy cover that helps them to create or promote a good image and reputation. The recent case that shows the failure of CSR of Volkswagen even make me believe that CSR programs may be just a marketing or public relation exercise for many

In this article, “The Truth About CSR,” authors Rangan, Chase and Karim stress the importance in aligning a company’s social and environmental activities with its business purpose and values (Rangan, Chase, & Karim, 2015, 41). Outcomes of CSR programs should be a “spillover” and not a primary focus of a business, expressing concern towards social responsibility and corporations failing to contribute to society accordingly (Rangan, Chase, Karim, 2015, 42). There is a great deal of importance in companies refocusing their CSR activities on a primary goal and in providing an organized process for bringing consistency and discipline to CSR strategies (42). Rangan, Chase and Karim want corporations to understand why it is important for them to evaluate their CSR activities and refocus them towards the goal of reinforcing the firm’s societal and environmental actions, while also ensuring their actions add to the overall purpose and values of the corporation. According to the authors, even though

The conduct or the operation of any business anywhere in the world brings with it a number of environmental concerns. These range from the emission of harmful gases, such as carbon (VI) oxide, into the environment and contributions to the depletion of the ozone layer, thus furthering global warming. It is however impossible to exist in this modern world without industries and business, as many would be unemployed and further lack various necessities due to a lack of industries and businesses (Forbes, 2011). Therefore, sustainability should be considered with regard for the environment in that actions should not adversely affect the environment to the extent that future generations will find it unlivable . Many of the leading organizations

Social responsibility suggests that a business is obligated to perform in such a way that benefits society, as a whole, in order to accomplish their civic duty. Social responsibility is crucial to a business’ success as it affects the way consumers view a company. It is important because it proves that the company cares for social issues that are not directly related to their ability to make profit. By associating your business with issues that affect the public, and not sales, your company will appear to be more admirable. Businesses strive to obtain a positive image and by practicing activities that benefit society they’ll reach success. However, where do businesses stand today with respect to the criteria for evaluating social responsibility? The fashion industry is a massive industry containing numerous businesses. Some businesses believe in social responsibility and value the idea of aiding their consumers. Nevertheless, there are still businesses who overlook social responsibility and don’t believe in the practice of giving back to society. These businesses are required to repay their consumers through respecting the environment, their workers and customers.

As a result, CSR has emerged as an inescapable priority for business leaders in every country. Many companies have already done much to improve the social and environmental consequences of their activities, yet these efforts have not been nearly as productive as they could be—for two reasons. First, they pit business against society, when clearly the two are interdependent. Second, they pressure companies to think of corporate social responsibility in generic ways instead of in the way most appropriate to each firm’s strategy. The fact is, the prevailing approaches to CSR are so fragmented and so disconnected from business and strategy as to obscure many of the greatest opportunities for companies to benefit

The paper addresses the concept of business ethics and law of Corporate Social Responsibility. The study of behaviour of the organisations should include how responsible it is towards the community and its employees, customers and investors.

Financial Crises are well-known phenomena in economics history; however, after the Great Financial Crisis of 2007-2009 the role that Central Banks play in order to prevent Financial Crises has been questioned. To begin with, it is important to understand that crises consist of highly complex macro-financial linkages that reflect the interactions between the financial sector and the real economy (Claessens 2012). Additionally, it is important to highlight two different financial crises groups: Currency and sudden stop crisis, which have strictly quantitative definitions; and debt and banking crises that depend on qualitative and judgmental analysis (Claessens 2012). Nevertheless, the interconnectivity of the financial sector demonstrates that major crises are a blend of the different types; thus, the effects on real economy are larger (Laevene 2008). In consequence, governments and central banks have the responsibility to develop monetary and macro-prudential policies to appropriately supervise and regulate the financial industry (Norgren 2010). However, central banks have failed to appropriately understand the main symptoms that precede financial crises: credit booms and asset booms (Bijapur 2015). In fact, it is essential to comprehend these symptoms in order to develop policies that strengthen the fragility of the financial industry; hence, upholding stable growth and inflation.

Corporate social responsibility is a controversial matter that regarding businesses’ ethics especially those that only obeys the law and does not care for the social harm they have caused. There are numerous occasions where the companies harms the society and communities more than the benefits they provide. The case of Samarco 2015 Mine Disaster is one of the occasion that occurred due to negligence as they chose not to follow a single safety regulation of the dam which caused a calamity that damaged the ecosystem and affect the people living in the state of Minas Gerais.

This widespread transmission of a corporation’s misconduct will then have significant ramifications for their reputation and profitability. The case of Shell in Ogoni (Niger Delta, Nigeria), the Brent Spar in the UK as well as Nike’s sweatshop saga in Asia in the 1990s are good examples of how the social conducts of a corporation can affect their reputation. However, the tension between CSR concepts and CSR practices remain and this has led some to

It is a known fact that Denmark’s firms have the best ethical behavior. Some of the Denmark’s well know global corporate leaders are Novozymes, Novo Nordisk, Maersk, Carlsberg, Vestas and Dong energy. All of these companies have taken a lead in CSR and incorporating circular economy, cradle to cradle concept. The definition of CSR has evolved. Companies use to integrate social and environmental issues in their business on a voluntary basis. In recent years it is becoming more of a responsibility of every company to identify, prevent and mitigate the possible adverse impacts of their businesses on the society. While

Social CSR issues are seen throughout South Africa, therefore the effect the businesses anywhere. Poverty is seen as well as unemployment, and many more. It is therefore important for the business to get involved in the Social CSR issues in order to benefit the business, in ways such as creating better opportunities for the business, increasing the businesses worth and having competitive advantage.

‘Corporate social responsibility’ (CSR) means that the firm has wider responsibilities in relation to objectives and people apart from the owners or shareholders (Beal and Goyen 2005). These responsibilities are achieved when the firm adapts all of its practices to ensure that it operates in ways that meet, or exceed, the ethical, legal, commercial and public expectations that society has of business. Objectives often associated with CSR include a responsibility to manage natural assets sustainably and not to pollute by chemical discharge, smell, noise, dust or other irritants; fair treatment of employees and ethical attitude towards clients. The other people include employees, customers, suppliers,