Corporate Social Responsibility ( Csr ), Technology, And Diversity

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In today’s society, the pace is tremendously fast. With that, a change occurs constantly and creates a race to be above the curve and a step ahead of the trending movement. In the business world, we are interconnected throughout continents with interdependent economies and enterprises. Some of these changes that effect the management of companies include corporate social responsibility (CSR), technology, and diversity. Corporate social responsibility, or CSR, has been conceptualized rather broadly as the managerial obligation to take action to protect and improve both the welfare of society as a whole and the interest of organizations. In recent years, corporate social responsibility has been becoming increasingly important and is held…show more content…
The theory is if they are in good standings, it can benefit them in many ways. One way is that consumers are more willing to purchase from a company after information of their CSR is out and can see that it is an ethical company (Mcguire, Sundgren, Schneeweis, 1988). Low social responsibility, on the other hand, may encourage some stakeholders to doubt the ability of a firm to honor implicit claims and may increase the number of a firm’s more costly explicit claims. Moreover, Bowman and Haire suggest that stakeholders and stock and bondholders see CSR as correlating to management skill. The theory is that reputation is an investment and through positive CSR, financial performance will increase accordingly. However, there have been various arguments regarding the relationship between a firm’s social responsibility and its performance outcome (Sankar, 2001). One argument is that firms face trade-offs between their social responsibility and financial gain. Those who believe this propose that the incur costs firms have to pay for their socially responsible actions put them at an economic disadvantage compared to others. These additional costs include actions such as charitable contributions, promoting community development plans, etc. Another view is that the explicit cost of a corporate’s social responsible duties are minimal and that they ultimately benefit in doing so with an increase in employee morale and
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