Corporate Social Responsibility

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CORPORATE SOCIAL RESPONSIBILITY (CSR) is a term describing a company’s obligation to be accountable to all of its stakeholder in all its operation and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholder with their need to make profit. A company’s stakeholders are all those who are influenced by and can influence a company’s decisions and action, both locally and globally. Business stakeholders include(but are not limited to) employees, suppliers, customer, community organizations, subsidiaries and affiliates, joint venture partners, local neighborhoods, investors, shareholders(or a sole owner in case it is sole…show more content…
Some would argue that the only reason to take on social projects is for utilitarian reasons, such as currying favor with the public or with government, or to improve market standing. Others, such as the philosopher Michael E. Berumen, suggest that a business is property belonging to the owners, not stakeholders, and that a business is not equivalent to a mini-state for the purpose of creating social justice or carrying out social planning, and that the owners have the right to dispose of their property as they see fit within the limits of morality, including for profit, social good, or both. Proponents of CSR would suggest a number of reasons why self interested corporations, seeking to solely to maximize profits are unable to advance the interests of society as a whole: • Corporations care little for the welfare of the workers, and given the opportunity will move production to sweatshops in less well regulated countries. • Unchecked, companies will squander scarce resources. • Companies do not pay the full costs of their impact. For example the costs of cleaning pollution often fall on society in general. As a result profits of corporations are enhanced at the expense of social or ecological welfare. • Regulation is the best way to ensure that companies
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