Corporate Social Responsibility and the US Economy - Research Paper Example

? Corporate Social Responsibility and the US Economy Introduction Most businesspersons in the world face ethical and moral dilemmas at work places. These dilemmas are complex and the businesses weigh on the benefits attached on either individuals or the other groups with negative effects. The business ethics has been of great attention in both training and initiating the social responsibilities. In relation to ethics, the business world has to balance the profits it gains and the ethical dilemmas. Therefore, this paper focuses on the ethical issues in relation to overutilization of resources, pollution and the charitable contribution related to the benefits of the tax received. Pollution and how to reduce emission of gases Over the past decade, great attention on the theory of corporate social perspectives and responsibilities has affected most companies in US. This is necessary to the financial and economic deals of a company. Furthermore, we also take concerns on both social and the environmental consequences that a business focuses on its shareholders and the society. Most businesses have realized the flaws in social corporate and have started to balance the financial performance and the social and environmental responsibilities. In US corporate like the Home Depot and the Minnesota Mining Companies are the leading advocates in recognizing values to maintain balance between the financial success and the environmental responsibilities (Adams, 2002). Contributions towards environmental conservation The leading practice for social responsibilities includes the moral, ethics, and the environmentally just aspects. In US, a classical approach emerged due to improvement and development models that the classical society was experiencing. According to the classical model for the social responsibility, most businesses have the direct environmental responsibilities. The classical model has advised most companies to continue increasing its profits and maintain the order of the environment. However, this could not hold the corporations to remain environmentally responsible due to a great deal. Thus, corporations need to seek their profits and at the same time obey the moral minimum. This practice will eventually overcome the common ethical deficiencies related to the classical view about environmental conservation. The moral minimum anticipates being part of the customary business practice and the forces restraints on the high-powered managers of companies (Cornelissen, 2004). The biggest environmental challenge that is facing most industries is development of an account on the environmental responsibilities widely but within the moral minimum to motivate most business compliances. Therefore, this becomes the accepted way of increasing profits in an accepted manner. In US, most companies assimilate corporate social responsibilities as their marketing strategies. In this regard, consumers may decide to purchase the products with reasons that they are supporting the social causes. Due to this, there is heightened financial performance aimed at the corporation through huge consumer profits. In addition, numerous companies have tried to establish social responsible corporate images. Through such techniques, consumers are involved either directly or indirectly in supporting the causes. Furthermore, there exists a superior model for sustaining development, which posits that businesses have the moral responsibilities to ensure that the activities are ecologically sustainable. Through this theory, the moral minimum should include ecologically sustainable perspectives. This seeks to reunite the natural ecological laws and the moral limits placed on the business activities (Adams, 2002). Businesses recycle the resources in appropriate rates and later compensate the ecosystem due to the losses that the productive capacity posses on its activity. Therefore, this knowledge on social environment perspectives is vital in the management of corporations. Case studies The Minnesota Mining and Manufacturing Company This worldwide company situated in US, has been renown for maintaining and leading the global markets to positions its seven businesses and at the same time upholding the various commitments to lead the social practices for sustainable developments. The company contributes to the modeling concept through the environmental protection, economic progress and the social responsibilities (Cornelissen, 2004). The company has created a health and a safety environment. Therefore, the company is certified for its success in reducing the violating organic air emissions and its use of solvents in the manufacturing process. The reductions are officiated through pollution programs that prevent the process further air pollution. The company has also employed pollution-controlling equipment and developed the solvent less technologies. In addition, the company has taken the voluntary responsibilities of action in reducing the greenhouse emission of gases. The company has achieved its goals by improving the manufacturing process and pollution controlling equipment. The company has also resolved to decrease the production of the waste products and is working to enhance and protect the biodiversity due to the environmental protection. It has also donated $5.5 million towards the nature conservancy in preserving the habitat in Brazil and US (Cornelissen, 2004). The online facility preservation and other partnerships have tried to safeguard the nature of the world. The company has also participated in the community outreach programs and other educational contributions, offering grants and facilitating other conservation programs. The Home Depot Company This is a lucrative and a thriving company that is striving to remain as much profitable as possible in upholding the environment and sustaining the community. The company first understands the importance in conserving the environment abiding to the rules and principles in guiding the actions of the company. Furthermore, the company is more committed in improving on the environment through the sale of its products, which are manufactured, packaged, and then labeled in a more responsible manner (Cornelissen, 2004). The company has also shown obedience towards the environmental laws. It has worked towards protecting the natural resources with the use of the water and energy in a more efficient manner. The company has put up regulations to recycle its products and other by products to produce shopping bags and office supplies. The company has taken a national stand in preserving the endangered timber species in most parts of US. It has given preference to the wood purchased from the managed forests and despised those from the endangered parts of the forests. The company also introduced in the building materials that were produced from the wheat straws that could be to substitute the tropical hardwood, which are diminishing (Adams, 2002). The company as the core contributor in the philanthropic ideologies has recognized building and refurbishing of the playgrounds to ensure safety and easy access to the community gatherings. Thus, the home depot is striving to build the community and remain in a socially responsible manner that seeking more superior profits every year. Overutilization of resources Current U.S economy is facing challenge due to the high rate of resource consumption in relation to the environmental resource. Inequality in resource distribution is exacerbating leading to high level of scrutiny. Similarly, concern about the U.S. economy has been drawn by the accelerating dynamics of the consumption-poverty-environmental nexus. The current problems of human development and consumption may worsen if the trends in resource utilization continue. The probable solution to unequal utilization of resources include high income to low income redistribution, adoption of cleaner production technologies and goods over pollution, and prioritizing human basic needs over conspicuous consumption. Therefore, the high level of scrutiny notable on U.S economy is attributed to the increase in the consumption rate of products and resources in satisfying technological innovations and luxury items and other basic needs. However, it is evident that consumptions beyond the basic and minimal needs are essential because each country has sought to enhance the living standards of its citizens (Mackin, 2011). Thus, the United States economy has both positive and negative impacts on overutilization of resources. Nevertheless, the environmental impacts on the modes of resource utilization lie in the country’s economy in relation to the global business and management. The over consumption and abuse of resources is ascribed to over population and policies that have been set in place (Shah, 2011). Studies show that maintenance of the American lifestyle has encouraged the existence of an enormous productive economy. As a result, it dictates consumption as a way of life. Buying and selling of good has been converted to rituals. Thus, the increased corporate responsibility relies on prestige measures and social acceptance defined in terms of the country’s consumption pattern. Similarly, significance and meaning of U.S citizens’ current life is expressed in terms of consumption. In regards to resource utilization, Americans are compelled to express their individuality and aspirations in terms of accommodation and clothing as result of the pressure they experience in conforming to acceptable social standards and safety. This has forced an increased pressure on available resources. United States accounts for thirty percent of the world natural consumption rate despite having five percent of the world population. Most of the natural resources can never be replenished by humankind hence a corporate social responsibility (Shah, 2011). This is based on availability of a finite amount of resources such as oil and coal essential in sustaining the manufacture of consumable goods or humankind. Though some resources are fixed, it is evident that some are more fixed than others. Therefore, management of natural resources is essential in environmental management. The corporate environmental management in relation to social responsibility is based on conservation of humankind. Overutilization of resources results in pollution of the environment. Lack of pollution control measures result into undesirable waste products from agricultural activities, industrial production, human consumption, transportation, and mining thus the notable degradation of the natural environment (Mackin, 2011). Overutilization of resources affects U.S economy since it emanates from the direct or indirect relation between business and the environment. It is purported that environmental sustainability must be established from the long-term social and economic sustainability. Similarly, integration of the environment and the economy is important in overcoming the U.S challenge of sustainable development (Shah, 2011). Corporate responsibility is notable for positive outcomes from the proper application of proper environmental management systems in the global business sector. Such benefits include improved competitive advantage, improved employee satisfaction, minimized commercial liabilities and risks, and cost saving. Thus, the increased level of scrutiny that many corporations have experienced is aimed at increasing environmental problems awareness. The reports that may be created as a result may help to reveal that United States companies that communicate, manage, and measure their environmental performance are inherently well placed because they comprehend how to reduce their costs, improve their processes, comply with regulatory stakeholders expectations and requirements, and taking of new market opportunities. Failure to plan for a future in regards to availability of limited resources is expected to cause long term effects on global business sectors due to prospects of increasing environmental problems. Corporate charitable contributions in relation to the tax benefit received It is of great importance that there comes an implementation of tax benefits for corporate charitable contributions. This will be a great step to ensure that there occurs an equal distribution of wealth in the US economy. This is enhanced as an initiative taken after most of the US corporations have been placed on scrutiny for their business processes. Implementation of this process will have great impact on the level of generosity practiced by most US corporations. In effect, the government enhances a situation in which the cost of donation is divided among all the taxpayers while at the same time reducing the cost laid upon the donor (Kotler & Lee, 2004). According to Domingue (1995), it is important that organizations should not solely concern themselves with their own economic welfare. It is in fact another way of increasing utility in terms of economic welfare if they undertake philanthropic steps towards others who are not well off. The essence of altruism is in the idea that people or in this case, corporations give to others if whatever that is reduced from their wealth to others is offset by the level of satisfaction attained from sharing. In addition to this, grants or gifts to others do not in any way reduce the utility since the improvement of the living standards of others has the effect of improving the general economic welfare of the community. In some other views, a dollar that may be offered to others has greater marginal value in the hands of those who are less well off than in the hands of wealthy people. Therefore, the income tax system can be used to influence altruism such that there ought to be tax credit for charitable donations to encourage giving in corporations. In such a case, the donor is forced to pay less in contribution because all taxpayers are made to pay part of the contribution. Those corporations that make links with charity improve their corporate image because in effect, they are known to have a social conscience. Therefore, in addition to the essence of creating a better public image for the corporations, this also has a marketing factor that works to the advantage of the corporations (Domingue, 1995). On an international front, charitable giving has a great impact on company’s bottom line. It is projected that every dollar donated in terms of cash or services has an accruing effect of 200 to 300% return in profits. Furthermore, companies with 100 employees and below donate approximately 6% of their profits to charity. In 2003, it occurred that the largest corporate contributor was Target in terms of percentage of cash donated. However, Wal-Mart was top in terms of straight dollars. Other companies on this list during the period between 2003-2004 include Coca Cola, National Insurance, Best Buy, Boeing, Caterpillar, Bristol-Myers Squibb, Bank of America, Altria Group, Safeway, Johnson & Johnson and many others (Kotler & Lee, 2004). This means that even though some corporations are already practicing this aspect of charitable giving in US, and the government is responsible in implementing other measures to enhance the aspect of increasing the amounts that corporations is willing to donate as charitable contributions. Tax benefits or credits are a better factor that does not only encourage these trends but also a better motivation for the corporations. Most companies donate cash, employee services, time, and products. It is of great importance that most of the US corporations should make charitable giving one of the major factors in their corporate philosophy. Some other form of tax treatment may involve a situation in which tax deductions are made from entire charitable donations are deducted from the taxable income. Therefore, numerous benefits come from the idea of using the tax system in subsidizing charitable activities. The supporters of this aspect note that there is great diversity and high quality for charitable goods and services that accrue from the programs established and funded by the corporations and individuals through activities of great benefit to the society in general as opposed to those established, managed and monitored by the government. However, those in opposition to this aspect claim that there are also costs attached to it that require some form of consideration. These costs come inform of the foregone revenues to the federal tax benefits used to make individuals contribute to charitable activities that has substantial amounts. In 2010, a sum of $37 billion was devoted charitable tax benefits. Another cost to this is in terms of the charities that mismanage the funds and goods donated to them for charitable activities (Kotler & Lee, 2004). Conclusion Corporations like the Home Depot and the Minnesota Company has the responsibilities and duties to remain more significant in terms of environmental and social responsibilities in enhancing the financial performance. The company makes huge profits in participating and promoting the conservation of the environment. If all the resources involved in production are used and destroyed then the future success of the company is not feasible. Thus, the two companies promote environment and social responsibilities. They are partaking to better the natural environment through recycling some of the products and conserving the natural environment. These two companies have been prospects in preserving the environment basing on the social perspectives to act as recommendation for all our companies. Therefore, the companies should focus on the ways and methods of improving the manufacturing process to reduce all forms of pollution. Companies should also play active roles in the society and further sponsoring the communal projects to better the community. Through this, the companies will thrive both financially and advocate for our social well being in the society. The use of available natural resources in the U.S economy has been set in accordance to the satisfaction of the current living standards. Nevertheless, the environmental impacts on the global business have caused increased surveillance of United State corporations. There is needed to learn different aspects of nature that are useful in preservation of the environment for a better U.S economy for the next generation. On the other hand, despite the few negatives that are sometimes mentioned on tax benefits, the benefits for it are generally more to such an extent that it is the best strategy the government can take in order to help improve the status of the US economy in terms of equal distribution of wealth. References Adams, B. (2002). Streetwise complete business plan: Writing a business plan has never been easier! (Adams streetwise series). Avon, MA: Adams Media publishers. Cornelissen, J. (2004). Corporate communications: Theory and practice. New York, NY: Sage publishers. Domingue, R. (August 1995). The charity “industry” and its tax treatment. Retrieved from http://publications.gc.ca/Collection-R/LoPBdP/BP/bp401-e.htm Kotler, P. & Lee, N. (2004). Corporate social responsibility: Doing the most good for your company and your cause. New York, NY: Wiley. Mackin, J. G. (2011). The coming new dark ages: The truth about the U.S. economy. NewYork, NY: Createspace. Shah, A. (2011). Environmental issues. Retrieved from. http://www.globalissues.org/issue/168/environmental-issues Read More