Corprorate Social responsibility: a case study: IKARE - Essay Example

rotection is a crucial issue because of extensive expropriation of minority shareholders and creditors by the controlling shareholders whereby the outside investors do not realise rightful returns on their investments. Investor protection encourages the development of financial markets because protection from expropriation encourages investors to pay more for securities, which in turn encourages entrepreneurs to issue more securities. Internationally, the experience of workers with private equity firms has been negative due to reduction in services and quality, job losses, pay reductions, etc.

and sometimes cessation of operations altogether following acquisition. The interactions of stakeholder governance and CSR are complex. The complexity arises out of the nature and diversity of private equity financing. The connections between private equity and CSR are not well defined. There is not enough knowledge on the real effects on human capital and CSR programs in companies acquired by private equity funds. Though there are enough research findings that point to the areas of conflict, there is inadequate material as to how to integrate CSR with private equity for the welfare of the employees, the investors, the society and the environment at large.

The future points to the need for a regular monitoring, analysis and communication into how CSR interacts with financial instruments in the market, with special focus on environmental, social and governance issues. For many years, community development goals were viewed upon as philanthropic activities undertaken for the sole purpose of human welfare. They were viewed as entirely different and separate from business objectives and not fundamental to them, and doing good and doing well were looked upon as two separate pursuits.

But with the changing times, many organisations have realised that cutting-edge innovation and competitive advantage can be gained from “weaving social and environmental considerations into