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Should Corporations Be Socially Responsible?

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Should corporations be socially responsible? “Ignoring stakeholders reduces shareholders’ value for the company.”
- Edward Freeman. 2007
An article on Forbes has mentioned that Corporate Social Responsibility (CSR) is not going to solve the world’s problems, but is a way for companies to benefit themselves while also benefiting the society . My argument would align with Freeman because of the sole fact that in today’s world, no business can run in isolation. It needs support from the community it is in, as much as the community receives support from the company. One of the main reasons corporations should be socially responsible is because consumers, one of the major shareholders, expect better business practices to the extent that they
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Also, a study by the Society of Human Resource Management (SRHM) states that Corporate Social Responsibility has positive effects on productivity, recruitment of top employees, loyalty and retention, and most importantly, the employee morale. The famous CEO of General Electric, Jack Welch, once said, “You build the best team, you win.” A study by Net Impact, which created a “What Workers Want” report, said that 45% of employees would have a 15% salary cut for work that has a social or environmental impact. Another 51% of workers say that helping to "make a better world" and make a "contribution to society" is essential to their ideal work . This goes on to show that in today’s world, by following CSR, companies have an easier time in recruiting a talented workforce. A great example in this case would be the Sara Lee Corporation that created a Global Sustainability Development Working Team in an attempt to improve employee satisfaction through Corporate Social Responsibility.
By engaging with social causes in a variety of ways, a corporation can learn about new territories, product applications, cultures, and markets. Many companies seek to empower the poorest sector of the population, both at home and
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