“Why Companies Can No Longer Afford to Ignore Their Social Responsibilities”

1388 Words Oct 17th, 2014 6 Pages
Independent Article Report:
“Why Companies Can No Longer Afford to Ignore Their Social Responsibilities”
Theme of the Article Over the years, the perspective of corporate social responsibility has evolved in Corporate America. Today, many businesses have made promises to contribute to current social problems, such as the environment and labor standards. Companies are now looking at corporate social responsibility as a sustainability tactic that can benefit their overall market value. Companies that do not pay attention to their social and ethical responsibilities are more likely to be shunned by consumers and other stakeholders as well as “stumble into legal troubles, such as mass corruption or accounting fraud scandals”
…show more content…
These two things shape the business assumption of corporate social responsibility. Once responsibility leads to responsiveness and performance, there becomes a more satisfied society and either fewer factors leading to business criticism or increased expectations leading to more criticism (Carrol, Buchholtz 31).
The article supports this theory by pointing out that shareholders’ criticism of the businesses have become a crucial towards the market value, sales, revenue, etc. of a company. Then, companies started becoming more concerned about the societal environment and started to change their strategies according to how they viewed their social responsibility. Everything has been put into a different light. Now, the companies that pay attention to their responsibility are looked at as a less risky investment, a more pleasant place to work, and a more pleasant consumption. Each of these factors is considered when companies look into their operating strategies.
Another thing the text talks about is evolving meanings of corporate social responsibility. Some of the definitions of corporate social responsibility include: “seriously considering the impact of the company’s actions on society,” “the obligation of decision makers to take actions which protect and improve the welfare of society as a whole along with their own interests,” and
Open Document