Csr - Corporate Social Responsibility

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1.1 What is Corporate Social Responsibility? The theory of corporate social responsibility (CSR) is best elucidated by the statement that a company should take a wider view of how its actions and success impact society and stakeholders. CSR identifies that "doing well" and "doing good" go hand in hand. (Leadership and CSR: a Perfect Match). A commonly used definition provided by the World Business Council for Sustainable Developement states that CSR is "Continuing commitment by a business to behave ethically, and contribute to economic developement, while improving the quality of life of the workforce and their families as well as local communities and society at large". 1.2 How do Firms Engage In CSR? One of the most recognised…show more content…
With an ever increasing quantity of business people and investors becoming more and more conscious of stakeholder welfare and their social responsibilities, engaging in CSR appears to be an economically sound choice, not only for investors with a conscience, but also to attract and retain employees with good qualifications who would compare working conditions and ethical conditions with other firms. (Is CSR the privilege of Developed Market Economies?) On the other hand, some believe that a company 's sole purpose should be to make profit, and that the modern day competitive business environment does not allow deviation from what should be a firm 's goal, to make a profit. Author Jamie Whyte believes that shareholders and employees should be free to spend their time and money on anything they choose to and that "The idea of a company 's resources being devoted to some other cause than making a profit is outrageous" (My Company 's only Cause is to Make a Profit; Business is not responsible for Social Justice). Milton Friedman once stated that there is only one cause of a business, and that is to engage in activities intended to better long term profits, so long as one stays within the rules of the game. Whether this statement still stands some 40 years later is debatable, and will be evaluated
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