Corporate Responsibility: Theory and Practice - Essay Example

This was after the development and increased use of the term stakeholders to refer to the al the individuals who are affected in one way or another by the corporation in its course of business. This lead to a growth of various literatures such as strategic management: a stakeholder’s concept by R. Edward freeman that brought out a proper explanation of the corporate social responsibility proponents. Though various scholars have come up with contradicting concepts most of them have one basic attribute towards corporate social responsibility that is a highly sustainable concept that should be adopted by any growth oriented organization.

Several international standards on corporate social responsibility have been developed they include the ISO 26000. These ISO standard sets to accredit any organization that achieved high standards on ethical principles and morals or in ethics problem solving that arise in the business environment. Other CSR standards include the triple bottom line standards. One of the major corporations that have adopted these standards is the United Nations. The CSR concept is also governed by guidelines such as the principles that include the principles of responsible investment that was developed by the United Nations Classical economic view The conventional view of CSR by freedman states that all companies are set up by their proprietors with a basic aim of making profits.

This basically means that any business in practices has put all its profits in the basic aim of maximizing it profits for its stakeholders (Garriga, E. & Mele, D. 2004). This translates to all its decision making are focused in the production of the best possible outcome of all its activities. It goes on to state that all the benefits that accrue from that business activities to all the concerned parties who are influenced by the companies activities in one way or another should not be deemed as the corporate objectives. i. Maximum profit within the law The management of the corporation should do its level best in the achievement of the set goals of the organization and especially the corporate primary goal that is maximization of the profits.

The theory also considers that consideration of other factors other than the maximization of the company’s profits is an intentional scarifies on the profitability of the company. It also states that this other considerations muddy the decision process of the company there for impairing the profitability of the company. It has to be noted the profitability of a company is not usually considered it terms of monetary value but in terms of achieving the basic reason of which the company is in operation.

In example an institution may be in the school or medical business the institution may not get as much moments as other businesses working in the same levels of investments, the business profitability is in terms of the kind and level of services they offer to their clientele in example education and health care services will amount to the level of profitability of the institution. The institution in all sense may focus on the maximization of the profits that they are in businesses. This organization must do all the activities within the bracket of the law.

The organization must in all sense be within the legal parameters of the country of operation. This is basically observation of all tax