Corporate Social Responsibility ( Csr )

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Corporate social responsibility (CSR), has been the centre of debate since the last decade, with the increase in technology and globalization, company policies have come under a lot of scrutiny. Although this issue is not relatively new but with the hype of increasing media coverage and in the wake of high profile corporate scandals (Enron, WorldCom) the emphasis has mounted (Huczynski and Buchanan, 2013). Organizations play a vital and ever so increasing role in the lives of people, other organizations and the wider community in general (Mullins, 2013). Hence it is the responsibility of these organizations to act in such a manner that accommodates the wider society. In 1970, economist Milton Friedman once argued “the business of business…show more content…
Although it is still contested whether organization have a social responsibility beyond making profit, but there seems to be increasing internal and external pressures on companies to satisfy wider societal goals (Aguilera et al, 2007). It is long understood that a strong company reputation and imagine is a significant factor that determine the success or failure of organizations, however CSR has only just recently been acknowledges as an important factor that contributes to corporate reputation. A strong corporate reputation no doubt contributes to competitive advantage but stakeholders are being skeptical about firms intentions in engaging in CSR activities, some might perceive it as a worthy cause while other are beginning to wonder whether the CSR is genuinely altruistic or is it just another marketing ploy for companies own self-interest (Arendt and brettel, 2010).

Companies are involved in various scandal, which leads to a negative company imagine and decreases the value of company shares, this is inconsistent with the company goals to making profit, in order to reflect a more positive image and to strengthen their reputation as “responsible corporate citizens” they engage in corporate social responsibility activities (Huczynski and Buchanan, 2013). This might not always
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