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Evaluation of Corporate Social Responsibility and the Risks of being non-CSR Entity - Dissertation Example

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The researcher of this essay aims at comprehending the concept of corporate social responsibility and its different practices; evaluating potential advantages that could be achieved by being involved in CSR related practices; highlighting the impacts of being a Non-CSR entity…
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Evaluation of Corporate Social Responsibility and the Risks of being non-CSR Entity
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Evaluation of Corporate Social Responsibility and the Risks of being non-CSR Entity

Download file to see previous pages... This research will begin with the statement that the expansive literature on the topic of CSR comprises various definitions and explanations of the construct. For instance, the European Commission defines the concept of corporate governance as “A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with stakeholders on a voluntary basis.” In addition to that, a generally understood and applied definition in the management literature is expounded by Davis by defining CSR as “ the firm’s considerations of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social and environmental benefits along with the traditional economic gains which the firm seeks.” Moreover, there are other terms similar to the construct of the CSR including “corporate sustainability”, which focuses on long-run shareholder value by including principles particularly in nine other areas: governance, ethics, transparency, financial return, business relationships, community involvement, employment practices, environmental protection and product value. As a result, the activities attached with the concept of corporate sustainability remain largely analogous to the basic contents of the CSR. The CSR is an amalgamation of a number of corporate activities focusing on the welfare of stakeholder groups other than investors, such as suppliers, employees, charitable and community organizations and customers. One significant segment of CSR activities consists of corporate donations or contributions of products or cash to community and charitable organizations. For instance, Whirlpool Corporation (2010) arranged and donated a refrigerator to every home built by the Habitat for Humanity particularly in the affected areas of North America. Moreover, employees are also significant stakeholders for the companies. Companies carry out certain employee welfare related initiatives on a voluntary basis. Employee welfare includes initiatives from the facility of educational advantages to health care issues including providing them on site health clinics, wellness classes, fitness centres focusing on the issues such as work related stress management. Workplace safety has also become a critically significant factor of employee welfare; many companies have developed and established codes of conduct for employee safety and welfare and to their suppliers as well. Companies’ CSR activities also emphasis on meeting and fulfilling customer desires including protecting future generations. They intend to develop and sell such innovative products and services that appeal to customers’ environmental concerns via diminishing harmful product packaging and making it more durable and sustainable as well. Other CSR activities encompass “green” development and production practices and services, such as reducing emissions, conserving energy, reducing packaging materials, employing recycled materials, and sourcing materials from the suppliers located close to manufacturing installations. In this regard, Sony (2010) manages the harmful impacts of its greenhouse gas emissions by installing for carbon dioxide emissions from shipping, production, storage and other product use activities. Furthermore, companies often get involved with customers and vendors in their efforts to reduce their footprint and increase their environmental efforts. In this regard, Wal-Mart (2006) developed and announced a program measuring suppliers on their ability to diminish packing; and along with a goal of reducing up to 5 percent of total packing during the period 2008 to 2013. Why do firms involve in CSR activities? There remain various reasons underlying organization’s inclinations to get involved in socially responsible endeavours. First, organizations may prefer to remain ...Download file to see next pagesRead More
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The topic of "Evaluation of Corporate Social Responsibility and the Risks of being non-CSR Entity" is quite popular among the assignments in college. Still, this document opens a fresh perspective of seeing the issue. I’ll use the style for my own text.
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