Business Organization Shareholders vs Social Responsibility

Corporate social responsibility (CSR) is a broad term used to describe a company's efforts to improve society in some way. These efforts can range from donating money to non-profits to implementing environmentally-friendly policies in the workplace. CSR is important for companies, non-profits, and employees alike.

In (Cohen, 2008), the author quotes (Drucker, 1946) in noting that “Every organization must assume full responsibility for its impact on its employees, the environment, customers, and whomever and whatever it touches”. According to (Cohen, 2008; Drucker, 1946), that is the very definition of social responsibility. There are many ambiguities surrounding the concept of social responsibility; everything from definition to terminology, even what actions constitute responsible behavior is unsettled (Vogel, 2005). For purposes of this paper we will use the term corporate social responsibility (CSR).

Many firms are learning that being environmentally friendly and sustainable has numerous benefits. (O.C Ferrell, Fraedrich, Ferrell, 2015). This could enable them to increase goodwill from various stakeholders and also save money in the long term. This will mean that they are being more efficient and less wasteful of resources, which will enable them to be more competitive by satisfying stakeholders. The CEO of

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

The purpose of this essay is to research the notion of CSR and uncover its true framework and outline what social responsibility truly means to corporate organisations, and whether it should be seriously considered to be a legitimate addition to the corporate framework of an organisation.

Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

As argued by economist Milton Friedman, business's social responsibility is only to increase its profit with the use of its resources in a free market competition. Friedman also believes that companies have no obligation to exercise social responsibility to society (Friedman, 1970). However, studies have shown that when CSR is implemented it benefits the company financially, enhances reputation and attract

For my current event, I choose an article based upon the management topic of Corporate Social Responsibility (CSR). The article I choose was “A Purpose Beyond Profit”, written by Tony Schwartz, for the New York Times in 2014. As the title implies, it looks at businesses practices adopted by corporations that have surpassed just obeying regulatory laws to actually encompassing many sustainability programs to help society, even if means lowering their profits. In a meticulous analysis of the article, “A Purpose Beyond Profit”, I will summarize the main points of the author, show the important factors that support the main idea(s), reveal any holes in the main ideas, and its supporting arguments; further more I will provide counter-arguments to the basis of the article, and will discuss management theories that are applied in businesses today.

CSR involves the company acting in a responsible manner. There is saying by Lord Holme and Richard Watts that states, “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.” There are many positive effects or benefits a company can receive if they perform CSR activities. Some of these effects include increased morale, commitment, and a better reputation. Companies may also receive some sort of financial benefit depending on their sales to consumers, who strongly value the Corporate Social Responsibility contributions. Although we know what Corporate Social Responsibility is, how exactly do we determine if the company is socially responsible? Well, ask yourself, “Is if good for the people? Is it good for the environment? Is it good for the business? These are all questions you should ask yourself in order to determine whether the company is socially responsible or

The benefit to business of good Corporate Social Responsibility is difficult to quantify as it varies depending on the nature of the enterprise. Some scholars believe that there is a business justification for CSR. That is, what is good for the environment and society will be good for company profitability. And studies have shown a slightly positive correlation between CSR and financial gain (Steiner and Steiner, 2006). However, as Freidmanism claims, the first responsibility of business is to make enough profit to cover the costs for the future. If this social responsibility is not met, no other responsibilities can be (Hargreaves, 2006). Therefore it is critical that CSR activities are included in strategy formulation and that the level of resources devoted to CSR is determined like any other strategy – through cost/benefit analysis. Corporations will not throw money away…they need to see it

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

Most people think that social responsibility is not something that most businesses think about since their ultimate goal is to generate profits. But the reality is that today's consumer has become much more informed and much more demanding when it comes to ensuring that organizations do right by others. Businesses are thus forced to succumb to these demands because they realize that if they want to have a good reputation and develop a strong image in their particular segment, they would have to be socially responsible.

Snider, Hill and Martin. (2003) stated that “ CSR may be defined in general terms as "the obligation of the firm to use its resources in ways to benefit society, through committed participation as a member of society, taking into account the society at large and improving welfare of society at large independent of direct gains of the company" (as cited in Kok et al., 2001, p. 288). Since the growth of the corporations depend on the societal factors, corporations should be responsible for the society for the corporation’s own benefit in the long run. “The Corporate Social Responsibility (CSR) construct describes the relationship between business and the larger society” (Snider et al., 2003). According to The Wall Street Journal (2013),

There are now several concepts of CSR and its definition, along with the meaning across corporations. In my opinion, and according with our textbook in page 11. CSR is about a particular set of business and strategies that deal with social issues. In addition, we can clearly perceive that CSRs application along corporations has increase in the past decade due to the several local, and international regulations in order to enforce business to act responsible.