The Concept of Corporate Social Responsibility - Essay Example

This is a requirement by corporate governance to ensure that the companies give back to the surrounding community. The companies have taken strategies such as producing eco-friendly products. Corporate social responsibility takes part in the company’s profits. The paper will be explaining the meaning of Corporate Social Responsibility (CRS) as it is related to corporate and governance how corporations should behave towards the general public. Though corporate social responsibility has been in use for a long time there have been problems in coming up with a highly agreeable definition.

There have also been issues for the corporates because it is not clear what should be incorporated into the concept. They will also present the issues that arise in measuring the corporate social responsibility of a company. The implications of corporate social responsibility on corporate governance and corporate law are also presented. There is also a need to explain the meaning of corporate law and how they are related to corporate social responsibility. This is to determine the role corporate law plays in corporate governance.

This calls for defining the term corporate governance about corporate social responsibility and corporate governance. The paper will also discuss the problem issues that face corporate social responsibility in its actual context. Corporate governance is aimed at providing a balance between what a corporate want to achieve economically and the social goals of the company and those that should be given to the community. The concept aims at ensuring that the corporates pay back to the community for using the resources.

The concept calls for efficient use of resources and provides accountability for the use of these resources. Corporate governance also works to increase shareholders' value or even create value. Corporate governance ensures that the corporations work towards the interest of the shareholders and other stakeholders. BackgroundCorporate Social ResponsibilityA concept where organisations consider society’s interests by taking responsibility and being responsible for their activities on employees, customers, communities, and shareholders, as well as all aspects of their practices, is called corporate social responsibility.

This obligation and responsibility goes beyond the statutory obligation to conform to regulation and sees organisations willing to take extra steps and actions for improving employees’ quality of life, as well as that of their families, community locally, and the whole society. The debate about corporate responsibility is said to have begun at the beginning of the 20th century despite the growing concerns about the power of large corporations. The notion of stewardship and charity played a great role in shaping the early thinking concerning corporate social responsibility.

However, there is yet no universally accepted definition of corporate social responsibility. Corporate responsibility is the continued commitment by a business or an organisation to behave ethically and to play a role in the development of the economy, while at the same time improving the workforce’s quality of life. It is encompassed by how organisations and businesses operate, to produce a total positive effect on society.