Business Organization Shareholders vs Social Responsibility

2105 WordsJun 26, 20159 Pages
ABSTRACT In this essay, I am going to prove that a business organization should be socially responsible in a successful or an effective manner which will eventually benefit the company’s owners or shareholders. I will do so through illustrating the different potential effects of a business organization engaging in Corporate Social Responsibility (“CSR”). The effects that will be shown in this essay would be an increase and decrease in the company’s expenses, sustaining and harming the environment, increase and decrease in sales and customers, improve the lives of people inside and outside the company, and the practice of social irresponsibility. I will also be providing actual companies engage in CSR, and its effects on each company. I…show more content…
They practice being socially responsible and encourage their clients to do so as well by signing with their company. The companies Director of Sustainability, Garratt Hasenstab said that their clients are willing to work with them because the company is focused on creating a healthier and productive world (Thorpe, 2013). Companies can also change a certain process or activity in their production to reduce their greenhouse gas emissions. An example of this is Cisco, a manufacturing company of network equipment. The company’s vision is to reduce greenhouse gas emission in each of their business functions and processes to build environmental sustainability. After 5 years, they were able to reduce the greenhouse gas emissions by 25 percent, save $500,000 from reducing their business travels, and through the use of well-known collaborative tools, they were able to increase its revenue by 30 percent (Cisco Systems Inc., 2014). This illustrates that companies practicing CSR can reduce expenses and increase sales after a certain amount of years after the implementation of CSR which increases the profit of the company that benefits the owners or shareholders. However engaging in CSR is being ethical and sensitive towards the things around the company, it can also instigate some kind of social irresponsibility. There are entities that try to pursue socially responsible agendas but end up behaving in a socially irresponsible way

More about Business Organization Shareholders vs Social Responsibility

Open Document