Corporate Social Responsibility - Coursework Example

TOPIC: CORPORATE SOCIAL RESPONSIBILITY (NAME) (COURSE NAME) (INSTITUTIONS NAME) 3rd MARCH 2009 CORPORATE SOCIAL RESPONSIBILITY (CSR) INTRODUCTION Corporate social responsibility refers to the voluntary business activities that goes beyond the legal conformity and aims at enhancing the economic performance and contribution to sustainable development of the environment and the community in which a business operates. World Business Council for Sustainable Development, (2004) Corporate social responsibility may seem to be an attractive business at the policy level but at the matter-of-fact level it has been very challenging and taxing. As much as there exist considerable increase of information, best practices and awards and tools, it has proved that it continues to be challenging especially to the shareholders in the society. It is complex in nature in terms of the costs incurred. The stakeholders usually have high expectations and unfeasible demands that are quite difficult to control and manage. Gloria J. (2003) It is well known that business is an important social factor and ingredient which involves the provision of employment , the production of products and services, building of roads, bridges and airports, provision of healthcare, education, security. It also participates in the extraction and the use of resource by discharging pollutants and charitable donations. This makes it an important agent in influencing the society. This is a noble task that is more than many governments’ policies. Therefore for a nation to develop and the welfare of its citizens to be improved, then it is the responsibility of the business to ensure that they participate in some of the above activities in the societies. Without doing this, the advancement of the community through corporate social responsibility will not be achieved. Then the blame from the shareholders and the society will lie on the business top management. It is their duty to disseminate these services to the society to help them advance and also benefit the company in terms of creating more market for its products. Corporate social responsibility provides a framework for providing a stronger link between the employees and the business, shareholders and the local community as well as providing a blue print of the events and activities that can help reduce the operational impact of the business on the local environment. This cannot ensure environmental and social improvement in segregation of Governments accountability. Taking into account the formal policy and aims that corporate social responsibility has on the shareholders, this paper aims at giving the arguments that support the notion that business remain responsible to their shareholders not some “abstract” society. CSR facilitates the minimization of risk factors for instance the purchasing decisions, and increasing competitiveness. It has been facilitated by the examination, anticipation and the strategic management of the possible high risk zones, specifically those relating to the brand name of their products. Therefore their strategies will in the end determine the output of the business hence the shareholders are not liable to the formulation of strategies for the sake of cooperate social relation. The daily undertakings of the business are communicated to the shareholders of the company. This communications takes place in four areas, the market place, the workplace, the community and the environment. It facilitates the formal communications of values, ethics, believes through the national, international or the locally developed channels and company activities. Failure to communicate to the shareholders about the occurrences in the market will lead to the business full responsibility at the end of the day. Very few businesses operate in a black or pasty structure, where they are either totally righteous or entirely with no liberation, the efficient business leaders do not have time for social responsibilities as no virtue will be rewarded. As the top companies with regard to their community responsibilities are triumphant companies. Either a corporation firm engages on the communal responsibilities or not the key factor to success is the skills of execution and that is the duty of the top management of the company not the society. (Mallen B. 2004) Big companies with plenty of resources are in good position to cope with the hard economic times unlike the ones fighting for the survival as there will be no miscellaneous money to be spent on unnecessary embellishments. This will lead to a company deviating from their core goals of business. But managing the company’s social responsibilities is the same as managing any other aspect of the business. The execution can be successful or unsuccessful. Thus the problem is not in the society as the management is not doing anything but their performance is worse in the execution of the responsibilities. Hence well managed CRS supports the business objectives, builds relationship with stake holders and on hard economic times business costs should be reduced to maximize its effectiveness. Wood, D. (1991) The legal framework from the government dictating what policies the communal responsibilities society should put up with. The company being beyond morality and public strategy is a global player as powerless institutions are subjected and influenced to abide by the government jurisdiction. It is the mandate of the multinational companies to take lead in solution creations for global problems where the government has failed to give the corporate solutions. CSR are to abide by the rules and tax payment and the management role is managing the risks, reputation and investing in community resources that the firm will depend later on. Mallen B. (2004) Companies managers responsible to creation of profits to the company and social responsibilities negation proves to be a difficult task as if the interest is centered in real solutions to world poverty and environmental degradation as careful scrutiny of those wielding more power. Thus recognizing CSR as business framework enables in solution to wealth creation taking into account of people and environment. Mallen B. (2004) Corporate social responsibility largely depends on the resource allocations, and the size of the business. It therefore becomes the responsibility of the management to make final budget, guidelines and decisions in relation to the focus and aims of the business. Hence the shareholders are not part and parcel of the business top decision in the market apart from gathering information’s on values, interests and expectations. Poor budgeting will lead to the collapse of the business objectives in achieving social responsibilities. Gloria J. (2003) Corporate social responsibility has a fluid concept where it is bound to transform with time and thriving new ideas and innovations. Its main goal depends on the type of business, the sector in which the business operates locations of the business, values and demands of the shareholders, the staff and the local community interests and also the local legislation. A wrong calculation by the company management towards the selection of their areas of work might lead to the company incurring huge loses, and market. These loses can only be burdened to the business, not the shareholders of the business. On the environmental issues, many companies have been targeted on their effect on the environment such as discharging pollutants to the environment. This act does not encourage environmental sustainability hence the duty lies with the business policies on finding ways of reducing environmental pollution. It therefore does not involve the shareholders to formulate such policies. Pierre M.D (2007) The customers all over the world have been demanding more social responsibility. The millennium poll (2000) in Europe surveyed on the consumers attitudes towards CSR and explained that most company’s commitment o social responsibility was important when buying a product. They were not happy with the social responsibility of the government at present since they were business centered. Also negative assessment of CSR performances was established in Africa and Asia. In order to win the customers confidence and ensure a booming business thrives, then the business needs be constant in provision of social responsibility services to the communities. In order to do this, the management strategies should be re-assessed so as to achieve the customers’ confidence in their business. It is expected that bad and poor business dealings will make it to the front pages as well as the business pages. This is advantageous to the competing companies which will dominate the market. Poor business dealing include , poor marketing skill, corruption cases poor relationship with the governments will lead to the companies bad reputation hence delivering little in corporate social responsibility. Business ethics are intrinsically linked with Cooperate social responsibility. It is therefore not the responsibility of the share holders but the top management who transact business on their behalf that are responsible for the poor public image of the business in the market that leads to unattainable corporate social responsibility. Pierre M.D (2007) It is also the duty of the governments to ensure that social corporate responsibility agreement is adhered to by the business companies. In order to fulfill social responsibility to the communities, then the government needs to play its part to ensuring that good services are delivered to the people through the bureau of standards and also ensure that they’re not exploited in the process. It’s the incessant obligation of the business to improve livelihoods of the workforce with alongside one of their families and the community at large at the same time maintaining ethical values and contribution to the economic development. It is well known that Cooperate social responsibility has a responsibility to its shareholders. It provides the company with the framework for taking ownership of its actions. It acts as the foundation stone of corporate social responsibility. The milieu for its development is provided by the corporate governance and financial values and principles. The credibility of CRS is required and the principles to be applied in all aspect of the workplace and their future policies. Therefore the concepts of Cooperate social responsibility remain legally responsible to their shareholders not some abstract ‘society’. Gweneth N. John. I. (2005) REFERENCES Gloria J. (2003) “Corporate Social Responsibility: Synergy of State, Business, Society and non-State Actors” World Business Council for Sustainable Development, (2004), “Finding Capital for Sustainable Livelihood Business”: A finance guide for business managers. Information on “Corporate social responsibility” available from www.ioe-emp.org Retrieved on 3rd April 2009 Gweneth N. John I. (2005) “Corporate social responsibility: Case studies for management accountants”; Butterworth-Heinemann Publishers. Wood, D. (1991) “Corporate Social Performance. The Academy of Management Review;” Pierre M.D (2007) “Corporate Social Responsibilities: Why doing good is good for business”; Dublin city University press Mallen B. (2004) “Corporate Social Responsibilities;” New York: Sage Publishers, pp 12-34 Read More