Corporate Social Responsibility and Business - Research Paper Example

? Corporate social responsibility and business Insert In fact, corporate social responsibility entails the way organizations manage their business processes to achieve a positive impact on the society. In fundamental nature, business and corporate social responsibility are inseparable. Corporations need to be answerable to two aspects of their activities. The quality of management in the utilization of labor as well as execution of business processes comes first. Secondly, corporations need to be answerable of the nature and quantity of their effect on society in various aspects. Shareholders in a certain corporation take keen interest in the manner which the corporation carries out it business activities. In most cases, the shareholders focus on what the corporation has done, either positive or negative relative to its impact on the society (Subhabrata, 2007). Additionally, the shareholders show interest on how the corporation develops and takes care of its work force. Thus corporate social responsibility can be simply defined as the capacity of a company to build protractible livelihoods. The company upholds the cultural differences of the locals and finds opportunities in developing skills of employs, the public and the government thus gives back to the society. In fact, this model is much more convincing mainly because: a) Social responsibility forms an integral part of the society’s wealth creation process, which enhances competitiveness of a business hence maximization of wealth creation in society. b) In tough economic times, there are incentives to implement corporate social responsibility and better as compared to other corporate social responsibility models. However, corporate social responsibility has had a philanthropic definition in the United States. In the philanthropic model, companies earn profits, unhindered with an exception of fulfilling their taxation responsibility. Then the companies give a certain amount of funds, which is a percentage of their profits as a donation to support charitable activities. Nevertheless, corporate social responsibility has been defined in different model referred to as the European model that is more oriented in how business is executed in a socially answerable way, harmonized by the investment in the local communities for justifiable business reasons. It is noteworthy that different corporations implement corporate social responsibility differently due to their varied nature of business. Depending on a business priorities and core values, a corporate social responsibility is manifested in form of incentives and the business processes. Existing literature on corporate social responsibility has associated this practice to ethical ad moral conduct of business. Thus corporate social responsibility is perceived as an obligation not only to the law but also long term aims for the good of the community, which the business serves. In this sense, corporate social responsibility involves carrying out business in an ethically acceptable way in the interest of the society at large (Thomas, 2007). Thus a corporation is expected to: Respond in appositive in regards t o emerging societal priorities and prospects Willing take measures ahead of regulatory conflict Balance the interest of the shareholders against the interests of the society The main facets of corporate social responsibility: Economic responsibility to generate profit for the corporate owners Legal responsibility to strictly comply with all regulatory requirements Ethical responsibility not only to generate profit, but also act in just and a fair in business processes Voluntary and philanthropic responsibility to uphold human welfare and helpfulness In this paper, my chief focus on how the new policy published the European commission for the 2011-2014 action agenda has impacted business reorganization by the corporations so as to implement corporate social responsibility. The new policy was introduced to enhance a better alignment of European enterprises to better corporate social responsibility approaches. In fact, according effort to corporate social responsibility is the concern of enterprise to strategically increase crucial competiveness (Michael, 2012). This can amount to benefits such as cost saving, risk management, access to capital and human resource management. Since corporate social responsibility demands engagement with both external and internal shareholders, competiveness enables a corporation to efficiently anticipate and utilize advantage of fast ever changing social expectations in business operations. A corporation that manages to develop a socially ethical corporate social responsibility strategy will doubt establish a long-term consumer, employee and social trust, which is a firm basis for sustainable industry models. It is fundamental for any enterprise to create trust since positive public image promotes a favourable environment that a company can innovate and expand (European Commission et al. 2012). On the other hand, the society benefits as a whole since its interests are factored in as well. Explicitly, enterprises considerably contribute to the objectives of the European Union treaty through corporate social responsible. Indeed, the Europe 2020 strategy for smart, sustainable and collective growth inclusive of a 75% employment aim is among the key benefits that corporate social responsibility. In essence, responsible corporate conduct is substantial more so in case where private business provide goods and services to the public. Taking measures to mitigate prevailing inadequacy in employment opportunities, due to the economic crisis-is also an effective way of implementing corporate social responsibility that enterprises can utilize. This strategy offers a channel for building a cohesive society through execution of corporate social responsibility hence a transition to robust economic system (Tobias, 2012). The advent of the global financial crisis, the social crisis that came about due to its negative consequences did distort the consumer confidence in business as well level of trust they had in business. Thus this strategy has mainly focused on public concern in regards to social as well as ethical presentation of enterprises. Through renewed efforts in upholding corporate social responsibility in the 2011-2014 agenda the European commission is keen to create favourable conditions for robust economic growth, responsible business conduct as well as lasting employment age group in both the short term and log term (Philip & Nancy, 2004). In cooperation with European commission policy on corporate social responsibility enterprises have been improving working conditions and registering ever increasing membership in their supply chains. Consequently, the number of enterprise publishing their sustainability reports in accordance with the guidelines of the universal reporting initiative has rose significantly since the launch of the new policy for the 2011-2014 agenda. Furthermore, the strategy is enhanced by the European alliance on corporate social responsibility that has facilitated development of useful tools on major issues. Additionally, the strategy has been backed up by efforts of the National employer’s association to support the European Alliance. The National Employers’ Association also too has taken part in several actions to steer positive corporate social responsibility (Asongu, 2007). Despite the success of this strategy significant challenges are still persistent (Regine & Franziska, 2009). First, a big number of companies in the European Union are yet to fully comply with environmental apprehensions into their business procedures and key strategy. There still noticeable accusations directed to enterprises that only a minority of the companies in the European region pay attention human rights and key labour standards. However, the European commission has established several factors to increase the impact of corporate social responsibility to a higher level (Mark, 2011). These factors include: Prioritizing a balanced multistakeholder method that encompasses the views of member states, businesses, non-entrepreneur stakeholders Clarifying the public expectation of enterprises and making European Commission’s definition of corporate social responsibility up to date with international ideology and procedures. Promoting market reward for accountable business conduct inclusive of public procurement and investment policy Addressing company transparency on environmental and social issues from the stakeholders perspective Emphasizing on human rights, since it is an important aspect of corporate social responsibility in recent times Acknowledging the role of complementary regulation in making a conducive environment for enterprises that meet their corporate social responsibility Thus, through these key factors in realizing responsible corporate conduct, the main aim is to achieve a multidimensional approach towards corporate social responsibility. In accordance with the factors above responsible corporate conduct brings along labour employment practices and human rights such as training, gender quality, diversity and employee health as well as welfare. It also entails tackling environmental issues such as climate change, biodiversity, resource efficiency, pollution prevention and life-cycle assessment. Lastly, responsible corporate conduct will entail fighting bribery as well as corruption. Through community involvement and integration in the multidimensional approach of corporate social responsibility consumer interests inclusive of physically challenged persons are addressed as well. Fundamental aspects such as promotion of environmental and social responsibility through supply-chains are also factored in responsible corporate conduct (European Commission, 2002). In itself, the 2011-2014 agenda entails commitments of the European commission and suggestions for enterprises, stakeholder groups and member states. Thus, their implementation facilitates the visibility of corporate social responsibility and observance of responsible corporate conduct. This approach has proven a successful strategy in achieving maximum rewards from corporate social responsibility to the public. For instance, giving adequate attention to business processes the intervention by the European commission has encourage most enterprises to come up with their approaches to corporate social responsibility (Nina, 2008). In addition, the commission will enhance capacity building for both small and medium business. As a result, the availability and quality of corporate social responsibility guidance for both small and medium size enterprise will improve significantly. Given the wide range of programmes that the European commission has established enterprises in coordination with other stakeholders can resolve crucial environmental and social issues hence enhanced visibility of corporate social responsibility (European Commission et al. 2012). References Asongu, J.J (2007). Strategic Corporate Social Responsibility in Practice. Greenview Publishing Beate. S & , Beate, S ( 2009).Towards a Sustainable European Company Law: A Normative Analysis of the Objectives of EU Law, with the Takeover Directive As a Test Case. Kluwer Law International publishers European Commission. Directorate-General for Employment and Social Affairs. Unit D.1 (2002). corporate social responsibility: a business contribution to sustainable development London, Office for Official Publications of the European Communities. European Commission. Sustainable and responsible business Corporate Social Responsibility (CSR). Accessed on October 31, 2012.) Retrieved from http://ec.europa.eu/enterprise/policies/sustainable-business/corporate-social-responsibility/index_en.htm European Commission. A renewed EU strategy 2011-14 for Corporate Social Responsibility. Brussels, 25.10.2011 COM (2011) 681 final. Accessed on October 31, 2012.) Retrieved from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2011:0681:FIN:EN:PDF Michael, H (2012). 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