The Pros And Cons Of Social Responsibility

Social responsibility makes a company more competitive and reduces the risk of sudden damage to the company’s reputation and sales.

Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social

Firstly, from the view of company, Volkswagen scandal is result from the misuse of CSR that the company regarded it as a marketing tool. Although Volkswagen promised to persuade CSR as their corporation culture, the reality turns out to be opposite. Volkswagen equipped defeat devices on cars deliberately to pass environmental tasks and actually the defeat device emitted nitrogen oxide approximately 40 times of standard (Dans, 2015). This behaviour can be explained as "green-washing", which means the real performance is different from the test results (Eric, 2015). The motivation of deception largely depends on corporation’s aggressive goal called “Strategy 2018” , which aim to increase annual sales to ten million cars by 2018 (Volkswagen, 2014). Therefore, Volkswagen needs to lower the price to be competitive to its competitors and one task is to reduce cost of production. Volkswagen used CSR concept to cover unethical actions. It demonstrates that Volkswagen focused on persuading the short-term target rather than its customers, long-term reputation and environment (Bansal, King & Seijts,

or so many years our society has been thinking of forming new creative and innovative businesses, which would be more environmental and customer friendly. Nowadays a large number of different companies follow the social, ethical, as well as moral consequences when it comes to their decision making. One of the relatively new concepts involving economic and social concerns is Corporate Social Responsibility. Many of us apply this approach not only at work, but also in everyday life without even recognizing.

Firstly, I would like to explain what Corporate Social Responsibility is. “It is a company’s sense of responsibility towards the community and environment (both ecological and

Corporate Social Responsibility (CSR) is a very controversial topic. A question that has been debated for the past few decades is; is it corporately viable to introduce social responsibility as a proposed addition to the work ethic of business organisations. As well as, if adopting the framework of corporate social responsibility would yield positive improvements for those organisations.

Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.

We will look at the Enron Corporation and discuss its application of Corporate Social Responsibility (CSR) or in actuality its irresponsible behavior as related to social responsibility. We will revisit what CSR is and discuss Enron’s philosophy regarding its use and function within the corporation. We will discuss the consequences of Enron’s irresponsible behavior and the far reaching effects it had on society.

Companies today are heavily influenced by the demands of customers and stakeholders. Corporate social responsibility (CSR) refers to the social and environmental responsibility policies and practices developed by an organization to increase its positive influence and reduce its negative activity towards society (Parks, 2008). The business approach and corporate philosophy of an organization is easily altered due to economic pressures, technological improvement and stakeholder needs and demands. "Going green" or being eco-friendly is one such demand. Environmental and sustainability concerns originate most often from governments, consumer activists, and the general public (Schlosser, 2008). Thus, organizations must implement sustainability into daily practices. In addition, sustainability alters the nature of competition and drives companies to think differently about products, processes, and technologies (Parks, 2008).

Social responsibility is built on a system of ethics, in which decisions and actions must be ethically validated before proceeding. If the action or decision causes harm to society or the environment then it would be considered to be socially irresponsible. Being socially responsible means that people and organization must behave ethically and sensitivity towards, social, cultural, economic, and environmental issues. Striving for social responsibility helps individuals, organization and government to have a positive impact on development, business and society. Often, the ethical implication of decision/action are overlooked for personal gain and the benefits are usually material. This frequently manifest itself in companies that

According to Milton Friedman’s statement which had published by The New York Times Magazine in year 1970, he had suggests that economic and social objectives are separate and distinct.

Among modern century more companies are being interested about corporate social responsibility (CSR) as business reports proved that it became a fact in business growth. CSR is a mechanism accomplished to maintain the economic, legal, and ethical responsibility to the community as same as organization. Stakeholder theory enables managers to take account of these different interests in business ethical responsibility:

Corporate social responsibility is the voluntary stance or set of actions from a corporation that demonstrate a contribution to a better society and a cleaner environment. Corporations are already required to operate within the law, but laws do not always protect all people or individuals who will be affected by the corporation’s actions. In addition to this, it is very common for special interests to play a part in legal decisions through lobbying efforts, so it is assumed to be an additional effort for a corporation to be socially responsible. Being socially responsible essentially comes down to being considerate and calculated in the decision making process, paying attention to the consequence of every action. In the ethical decision making model, there are two particular steps that I believe to be of greater importance than the others. The first would be that of

However, stakeholders can be defined as including employees, shareholders, and consumers. CSR is a growing trend that is important to consumers, especially to the millennial generation. It is actually investing in the future of the company to conduct CSR and to formulate long-term, profitable relationships of trust with millennials, who are the consumers of the future. Proper CSR can also attract future talent to support and work with the organization. A 2002 study conducted by Net Impact found that more than half of the 2,100 MBA students surveyed indicated they would accept a lower salary in order to work for a socially responsible company. (Kotler & Lee, 2005). CSR can be a means of not only building a positive brand image and respected corporate philosophy, but also attracting young working talent and developing the company’s market share with the upcoming millennial

Companies with extensive responsibilities even argue about the system in pursuing social responsibility of business. According to Ulrich Steger, the company should prioritize the shareholders’ incessant interest but they should also be concerned of their social responsibilities, morals and environmental goals that the public expects them to be. Without a doubt, companies’ primary goal is to earn a profit. Emphasizing on profitability affects the fundamental values in the company, its morality. Companies ignore the ethics just to earn a mountainous income. This often causes extensive repercussions in the companies.