Corporate Social Responsibility and Capitalism - Essay Example

ssеssmеnt Item 3 –-СSR & Сарitаlism Name Institution Introduction Corporate social responsibility (CSR) or sustainable responsible business resfers to a method of integrating self-regulation in a business firm. CSR allows businesses to supervise their operations and ensure they are as per the international norms, law, as well as ethical standards. The actions recommended in regard to CSR are those that are according to the needs of the law. It is the focus or aim of CSR to play its responsibility through communal actions and encourage having positive results to the surrounding environment, as well as the stakeholders, Business stakeholders include; communities, employees, investors, as well as consumers. This paper explores the responsibilities of corporations in considering and redressing the social impact of their business activities. Moreover, it explores ineffectiveness of those responsibilities because of the capitalist economic system. It is apparent that, corporations have a responsibility to consider and redress the social impact of their business activities, but they are unable to do so effectively because of the demands of the capitalist economic system. Corporate social responsibility should be employed in all corporations worldwide. Capitalism economic system refers to an economic system whereby industry, means of production, as well as trade are privately owned and they focus on earning profits. This is where there is a competitive market, wage labour, and capital accumulation. In the business market that is characterised with capitalist economy, it is the responsibility of the parties to determine methods through which goods, services, and assets are efficiently exchanged. It is apparent that, application of CSR requires the corporation to be dedicated to provide community welfare. However, businesses should be responsible to their entire societal stakeholders. Many corporations have in one way or another tried to show social concern to the community. The degree of success of application of CSR, differs since the means of incorporation of CSR are different. There are businesses that contribute to the social requirements of the communities in a genuine way. Businesses focus at producing and distributing their wealth, employ management practices that are sustainable, employ ethical systems, and manage the stakeholders, as they achieve their goals. Application of CSR, has to be accompanied with concern to the stakeholders. The business stakeholders include; the employees, investors, customers, and the community at large. Corporations require to show equal treatment of their employees whereby they avoid employment discrimination, but offer jobs to all interested and qualified people regardless their cultural practices, religions, ethnic groups, and originality, as well as physical look. Moreover, corporations serve their customer with the aim of retaining them for a long period since customers are very important in operation f businesses. It is apparent that, once customers receive fair and quality treatment and service from the businesses, they tend to come back again for more services and purchase of goods. Customers are very vital for running of a business and it is the responsibility of businesses to be concerned about their satisfaction from the goods and services produced by diverse companies. Moreover, it is the responsibility of businesses to ensure that communities’ requirements are met accordingly. This is where businesses obey the rules and regulations of a respective nation and more so, businesses should be responsible about the citizenship of the surrounding community. Corporations should be responsible for all the investors whereby they ensure that, their actions result to positive business environment to avoid ruining the effort of investors. Investors require working in a healthy environment where they are able to meet their business objectives and hit their target. It is the responsibility of businesses to ensure that their actions do not have negative impacts towards the investors’ activities. Being concerned about the stakeholders enable many businesses to operate successfully and to remain in the industry for a prolonged duration. Investors are very important because they support the corporations in doing their businesses whereby they provide the corporations with the necessities of continuing with their operations. Once investors continue investing in corporations, they boost the operations of the businesses through increased profits and growth. It is apparent that investors increase the revenue of the government and in return, they earn interest. Effort of trying to implement CSR in businesses has faced many issues because some businesses have failed because of not focusing at profit generation. Maintenance of balance between business activities and social responsibility is faced with some issues whereby focus at providing value to the society sometimes makes businesses run at a loss. This is whereby businesses lower the prices of their goods and services with the aim of providing valuable services to the customers, and end up running at losses or making no profit. It is apparent that, customers expect businesses to apply CSR at all times because businesses exist in order to serve the customers and they should be served with the necessary care and concern. It is clear that, many businesses set implementation of CSR as one of their strategies. Environmental sustainability is very important at all means and costs and it is a responsibility of all businesses. All activities done in a corporation should aim at enhancing environmental sustainability whereby businesses avoid wastage of resources, pollution of the environment, and usage of resources that cannot be reused. During all innovations and activities, there should be focus of conserving the environment and enhancing development, but not destruction. Corporations require focusing at the future whenever they conduct their activities whereby their actions should enhance environmental conservation in order to have a place and chance to do their respective businesses in the future. There are benefits in application of CSR by a corporation. This is where corporations manage to secure full-time workers, as well as professional linkage with associations. It is apparent that, advancement of social goal and undertaking of good work allows corporations to meet all expenses and meet people’s interests. It is apparent that, even managers in corporations are not permanently placed in corporations because they are only part of corporation, but not the business firms themselves. The work of employees is to take care of assets that are owned by other people, such as the shareholders, hence treating the stakeholders responsibly and supporting their existence in the business will enable corporations meet their goals and generate the require profits. Application of CSR that focus at profit maximization and enhancing healthy working environment as they care for the stakeholder, have a great impact in the business of a corporation and this makes application of CSR good for generation of profit. Sometimes corporations engage in compassionate capitalism that is concerned with the wellbeing of the stakeholders. This is because employees are always after gaining from job satisfaction and growth of the corporation, so when firms change their culture, they should consider the interests of their employees. It is apparent that, the corporate culture has to enhance ethical practices whereby businesses focus at promoting the public image regardless their sizes. It is apparent that, some companies produce things that are not very healthy for human consumption, but due to increased demand for those things, their continued operation is supported with huge profit generation. Some companies deal with oil and smoke waste released in some companies, and yet the interests of the stakeholders support their operations. It is necessary for such companies to apply CSR to enhance their continuity of being in the economic market. Ultimately, the application of CSR should not interfere with the government regulations regarding existence of businesses. CSR and economic focus of businesses is something that cannot be avoided. It is apparent that corporations have to make profits for their continued operations. Moreover, they should also abide to laws of the countries and regions of operation. In addition, they have to serve the society with ethical sense. Ultimately, the major aim of setting a business is to make profit for operation and for growth and development. It is not logic for corporations to sell their goods and services without recovering some profits. This is because they will only operate for one turn and be forced to close down due to lack of finances to continue with their operations. The more corporations try to implement the strategy of CSR, the more they fail in providing the necessary and required social responsibility to their stakeholders. It is apparent that, businesses face dilemma as they try to balance implementation of CSR and making profits for their continued operation and for their competitiveness in the entire market. In order for corporations to continue with their operations, they have to win trust from their stakeholders and also ensure generation of efficient and adequate profit. Generation of profit in businesses is essential in implementation of CSR strategies. It is apparent that, for achievement of CSR objectives, businesses have to have the idea of profit generation in mind. It is important for businesses to understand that, as they try to offer benefit to the society, the shareholders have to be taken care of through provision of what concerns them in the business. Nevertheless, organisations face many diverse affecting issues and to deal with them the organisations have to be financially prepared. However, solving of societal problems require businesses to have financial capability. It does not matter how businesses treat their stakeholders, but what matters most is how the businesses are able to be retained in the market. Moreover, when businesses make profits, this benefits the entire society since the businesses manage to advance and provide quality and affordable goods and services for the better part of the society. It is clear that, customers wish to see application of CSR from all businesses, but they will not trust a business once they realize it is making losses throughout because of much concern in provision of social welfare. Prioritization of profit and growth is the focus of many businesses whereby there is the need of confronting the issue of economic philosophy to have sustainable global development. It is necessary for corporations to change from rapidly growing corporations and become mature corporations whereby they create and focus to a future vision. It is apparent that corporations are likely to face issues of emergence of current crises. When corporations engage the issue of self-interest in the business strategies, there is emergence of morals, thus linking the business with the public interests. It is apparent that, once businesses develop a habit of fidelity, labour, justice, as well as fidelity, they manage to balance profit generation and implementation of CSR. Sometimes corporations make profit, but it fails to gain some meaning because it is equivalent to a reward because businesses have to ensure proper learning on linkage to good ethics. There is a difference between public or social benefits and business personal benefit and this emerges as corporations try to link ethics and economic matters together. However, once respect and individualism is attained in a business, the financial power of that business manages to be recognized whereby it aims at generating enough profit and respecting the interests and needs of the stakeholders. It is apparent that, corporations require having equal application of ethics and thoughts the same with a person because they are legal persons. Nevertheless, it is the obligation of corporations to follow the right laws and regulations and this enables them to create a strong relationship with the entire stakeholders since they manage to apply CSR in their operations. However, the expectations of employees, investors, customers, and the community in general continue growing towards the performance of corporations. In order to meet the needs of all these stakeholders, corporations have to be considerate of the existing status of the economy and focus to the future respective changes. It is the role of the global business community to improve the social and economic condition whereby market share is prioritized and business is effectively managed. This enhances pursuing of profit and having a balance with meeting the social responsibility to the stakeholders in the market economy. In order to balance between CSR and profit generation, corporations have to join hands and set some standards to guide them. Making customers satisfied, enticing the local community, taking care of the subcontractors, and the suppliers, and caring for employees together with their families require balancing of economic needs and application of CSR. It is apparent that, the modern economics is characterized with increased number of customers, thus the need of implementation of a paradigm shift, and reduced overpowering capability. It is clear that, running of businesses becomes successful because different business corporations make their own money through being sensitive to what they do and treating their stakeholders accordingly. However, corporations require retaining their integrity and reputation in order for their brands to continue having meaning in the eyes of the customers and other stakeholders. The capitalism has ruined implementation of CSR in businesses because of much focus on generation of profits and failing to show concern to the respective stakeholder. It is clear that, the corporate capitalism has to be promoted, and tamed to enhance adequate development, as well as social control of the markets. In the economic market, businesses are always ready to be faced with issues, such as limited resources, layoffs, increased costs, restructuring, competition, recession, as well as economic fall. As corporations budget for their operations, they should be inclusive of public relations, as well as contribution to different community matters. Nevertheless, in the economic market, the first priority is provided to the organizations whereby they compete among themselves and they have to be empowered with what they get back as rewards from their determinations of serving their stakeholders. However, it is very necessary for firms to maintain their social responsibilities and healthy existence. Ultimately, in the current economic market, the existing business climate can only be effective if corporations embrace CSR as they deal with the market challenges and as they focus on the business strategies. Organisations operate in a world where they face many changes regarding their means of communication, usage of resources, empowerment, and engagement of workers, and internet connections. In order to fit well in the current market, corporation have to assess the risks likely to face them in the economy and also take the responsibility of showing concern to their stakeholders for improved social support. Corporations do not have to apply very expensive approaches to CSR, but they should ensure empowerment of the employees and good treatment to the customers and investors, as well as community at large. The major focus of applying CSR approaches should be to enhance networking and teamwork between the corporations and their stakeholders. Implementation and mobilization of CSR in organizations requires both internal and external capabilities for businesses, application of approaches of cost benefit, equal implementation of CSR within the organization, and meeting the organization strategies. Corporations are both socially and financially accountable whereby they have to generate enough revenue and meet the social needs of their stakeholders. Practice of CSR in various corporations has to be functional and aim at fitting in the capitalism economy in order to have sustainable running of the business. It is apparent that some companies practice CSR just to have a good reputation, but they continue harming lives of their stakeholders with the products produced and the manner in which they operate. To pursue social responsibility requires managers to utilize their skills and effectively implement the general public policy. There are different views that organizations face in the business community whereby they are expected to meet the interests of the stakeholders and they are supposed to generate considerable profits and revenues. No matter how corporations treat their stakeholders, the rights of the stockholders have to be met, and they have to focus at maximizing their economic performance. Application of various business mechanisms has to be accompanied with good choices and proper mix and there is societal motivation of having sustainable business functionalities and focus on the profitability. As businesses continue showing environmental concerns, they have to be motivated with the returns they get from their operations and this has to be through possibility of making profits. For successful application of CSR approaches, corporations have to be empowered by their financial performance and they have to retain their reputation and profitability. Moreover, the application of CSR should enhance improvement of firms’ financial performance because running of every business have to be accompanied with generation of revenue and realization of profits. As companies do good to their stakeholders, they should also do well in their performance in order to win trust from the entire stakeholders. Organisational values are not met by considering CSR, but this has to be accompanied with gaining relevance of the improved financial performance and gaining more power in the capitalist economy. For having a healthy business-society relationship, businesses do not only have to focus at acting in stewardship, but to show efficient social consciousness, they have to be concerned about the economic market too. Some companies deal with production of oil cigarette, and gases whereby all these products can harm the lives of the stakeholders in one way or another. As these companied put their effort in showing social concern to the general community, they have to make sales of their products in order to generate revenue and manage to conserve the environment and be profitable enough. It is the habit of companies to compete with each other, and in the process of competing; they require to have financial capabilities. This cannot be achieved if companies only focus at applying different approaches of CSR without focusing at generation of profit from their operations. It is inconsistent behaviour being concerned more about the society and failing to meet the financial requirement of a respective business. It is apparent that, the value of companies’ shareholders is boosted by the fact that companies do what is right and experience improved financial performance. Ultimately, awareness of respective human rights allows companies to apply CSR and meet their financial needs for their improved existence and continued operations. Businesses that do not perform well in the economic market have to be closed down no matter how much they show concern of social responsibility. This is because without financial generation, companies cannot retain their employees and they cannot be able to produce quality and enough goods to meet the needs of their customers. It is apparent that the society might not understand the financial needs of the companies, but all they think of is receiving fair and quality treatment from the companies. Businesses require remaining free to pursue their profits, but they have to follow the rules and obligation that govern them towards applying CSR for the welfare of the entire public. As businesses play the game of competition among them, they develop some activities that allow them to fit in the minds of their stakeholders and also manage to meet their respective needs. Competition argument between companies has to be in considerate of the issues that companies meet in the economic market whereby they have to decide the prices to charge on certain goods depending with the economic status and according to how the market is at that time. In order for the corporations to survive in the competitive market and manage to apply approaches of CSR, they have to be profitable enough to meet all the expenses and have some growth. Achievement of lower and higher costs has to be accompanied with social responsibility of the involved businesses whereby the experience raised revenues and good reputations, which come from the opinions of the stakeholders. Moreover, decision-making among diverse firms require to focus in the increment of financial interests and they have to encourage comments and dialogue from the stakeholders in order to understand the interests and needs of the stakeholders and try to match with their capabilities in meeting those needs. Sometimes stakeholders might be considerate and understand the issues faced by companies and their need for making or generating profit, thus ease the application of CSR. However, as organizations develop strategies, they have to consider legal requirements and they also have to assume a behaviour of social responsibility. It is apparent that, application of CSR also allows the businesses to be concerned about waste disposal and industrial pollution, product safety, business crime, concentration in wealth, discrimination, as well as marketing deceptive information and improved use of technology. For social purposes, companies have to spend some money whereby even the government owned organizations require generation of revenue and profits for them to be able to continue being in operation and to realize their objectives. The society has a responsibility to make the work of companies easy and manageable as they continue operating whereby they contribute in issues of decision-making as they direct companies on the right things to focus at as they aim at making profit from their operations. The interests of the stakeholders are not equal with the need of setting strategic theories and understand how businesses are connected to the strategies of the corporate economic market. It is apparent that CSR enhances generation of some positive returns especially if companies undertake good practices in their management and there have to be some profit-promoting techniques. Allocation and coordination of resources require companies to be concerned about the community, but on the other hand, they have to mind about their financial requirements. In is apparent that, it is the responsibility of corporations to consider and rectify the social impact resulting from their business activities, but they fail to do so successfully because of the demands of the capitalist economic system. This is because businesses require to focus on revenue generation and they have to compete with other business firms in the respective market. It is apparent that, corporations should be concerned about the social welfare of the community in general, but their major focus is success of the operations and activities whereby they charge their products and services in a manner that, they manage to recover their expences and get some growth. Welfare and profit maintenance are strategies of many business firms whereby they set policies that allow them to fit in the financial world, as they manage to meet their financial needs, and at the same time enhance environmental sustainability. For survival of companies in the economic market, they have to have enough revenue and this have to be through the focus of competing with other firms and charging considerate prices for their services and commodities. The market has to have some economic stability and businesses cannot leave the opportunity of market control to the investors, customers, employees, or the entire community. It is necessary for corporations to ensure application of social responsibility in their operations, but they have to balance with the financial generation techniques that allow them to survive in the market for the desired period. However, conserving the environment and enhancing development are objectives of many companies. References Savall, H., Zardet, V., Péron, M., & Bonnet, M. (2014). Can CSR be standardized Through a Socio-Economic'System wide Sustainable Social responsibility'?. Society and Business Review. Postel, N., Rousseau, S., & Sobel, R. 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