This essay analyses the concept of Corporate social responsibility that formalise the relationship in the organisation. It also elaborates the different activities of CSR through which organisation can easily carried out their business. It includes the activities such as promoting the education system, Reducing the rate of mortality, promoting the gender equality. It also analyses the different issues of CSR such as engagement of stakeholder, gender balance, good governance, environmental management etc. Apart from this, it also ascertains the different arguments in relation to the social activities. While adopting the CSR the competitors can gain positive advantage and keeps a further step towards the environmental and social factors. In addition to this, it can be stated that CSR is different from the philanthropy, when it executed in proper manner then it can be ingrained in the culture and values of the company that affects the business.
Corporate social responsibility is the method through which companies can integrate the environmental and social factors in the operations of business (Kim, et. al., 2018). The main objective of CSR is to increase the profits for the long-term business by ensuring them to become the efficient. It can be stated that CSR activities includes the different policies of company that insist the process of working with their partners who follows the different practices of business. It also provides the opportunities to men and women at different level in organisations. It can be noted that the companies stress on the concept of CSR as if the society does not approve the way or method of doing business then they lose the reputation of customers. CSR not only increase the revenue or business they can progress and change throughout the world.
Apart from this, it can be stated that the approach of CSR are increasing day by day. It relies on the various relationship with employees, communities, investors etc. It can be stated that the corporate sector has an obligation towards their own business, employees, shareholders in the direction of community. So, all the units of corporate have a responsibility for the rise of community and that can be known as corporate social responsibility. In addition to this, the CSR not only refers to the compliance with the standards, labour, human right but also compete with the sustainable management of natural resources, philanthropic initiatives and volunteer projects. The strategies of CSR encourage the company to make the positive impact on the shareholders and environment . The shareholder includes the employees of company, suppliers, consumers, national governments that can be affected by the activities such as manufacturing, construction etc.
In the modern era, the business organisations use the concept of CSR more and it can be accepted in different situations according to their changes. It is the duty of business towards the society that can be accepted and indicates the liability. There are certain arguments that favour the concept of CSR such as it Protects the interests of shareholders as to receive the support from employees, it is essential for the organisations to discharge the accountability towards their employees. Long term survival, it can be determined that the organisations of business are more powerful towards the society. To avoid the problems and self-destruction the enterprises uses the concept of social responsibility. It also avoids the regulation of government, if the business enterprises do not follow the norms and ethics then they can attract towards the legislative restrictions. It can be noted that the government directly influences the organisations through their norms and regulations. In addition to this, the resources plays a vital role in the organisations as they can be used to resolve the social problems. They are the creation of society and also work for the interest of company from the both factors that is socially and economically. Apart from this, it can also be asserted that in today’s world the society faces serious problems due to emergence of new companies. Therefore, it is the moral duty or responsibility to solve the problems and also check the organisation who are using more resources.
On the other side, the CSR does not favour all the activities there are certain activities that are against it. It can be argued by the rivals of social responsibilities that the function of enterprise can be looked in to economic viability of operations. It is the duty of the government to concern with the interest of society. The main accountability of social responsibility is with the government not with the business organisations. It can also be stated that the benefit of social programme in which the cots exceed then it will not be taken by the enterprise in the period of short-run. The major issue is regarding the competence and skill, which means that managers are not capable to solve the problems of social responsibility. In addition to this, it can be stated that the main of organisation is to earn profit, they are accused to have more profit. But the business can operate in the world of hunger, poverty and it is the matter of priority and that should be the mission. The another can be in form of cost as the cost of social responsibility can be passed on the society and the main concern is regarding that society can be bear these additions cost and that becomes the major issue (Epstein, 2018). The other arguments is regarding the centre point that means the companies who uses the major part and or on most they are not successful towards their goals. For example the personality such as Bill gates , who does not achieved the status , the Welch remembered for the brutal downsizing and for the incidents of pollutions an prosecutions etc. It is the duty of the government to deal with the social benefit not with the business, which means that the business is beyond the public policy and morality and that depends on us (Aguinis and Glavas, 2019). It can be expected by the government to provide the legal framework and that should be followed by the society. Through this, the individuals and organisations can maintain the peace and perform the legal task only. It is limited to the transfer of social cost that can be done through the high price, as the costs are passed towards the consumers by increasing the number of services and goods. The other factor is low wages which means if the executives maintain the level of prices then the social cost can be indicated through the reduction of wages (London, 2018). If the wages remain stabilised, then profits will be diminished that lower the dividends to the stakeholders. These low profits diminish the desire of managers to engage in the activities of corporate social responsibility. The other states that the business is owned by the stakeholders as the money spent on CSR by the higher authority is theft of the property. This statement means that there is human right instance against the social responsibility and that is the approach of shareholder and considers as the disadvantage (Hasan, et. al., 2018).
Lastly, it can be stated that building the relationship with the customers is the important and having the policy of social responsibility can influence the decision of buying on customers. As there are certain customers who have an ability to spend money for product, if they knew that the profit is going worthy cause (Crowther and Seifi, 2018).
From the above essay, it can be concluded that Corporate social responsibility plays a crucial role in the business organisations. It aids to the mission of the organisations as well as serve as a guide to the company that represents for its customers. Apart from this, it also lays an emphasis on the business ethics that investigates the ethical principles and the ethical problems that arise in the environment of business. Business can be recognised as the most important entities in the community. Their actions and decision have the capability to create a change in the society. It is the duty of managers not to misuse the trust of society as they are bound to flow the norms. The business exists to supply the services and goods and earn more and more profit. They are ruined by the human beings whose actions and decisions can create the changes in the community.
References
- Aguinis, H. and Glavas, A., 2019. On corporate social responsibility, sensemaking, and the search for meaningfulness through work. Journal of Management, 45(3), pp.1057-1086.
- Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald Group Publishing.
- Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
- Hasan, I., Kobeissi, N., Liu, L. and Wang, H., 2018. Corporate social responsibility and firm financial performance: The mediating role of productivity. Journal of Business Ethics, 149(3), pp.671-688.
- Kim, K.H., Kim, M. and Qian, C., 2018. Effects of corporate social responsibility on corporate financial performance: A competitive-action perspective. Journal of Management, 44(3), pp.1097-1118.
- London, M., 2018. Leadership and advocacy: Dual roles for corporate social responsibility and social entrepreneurship. In Contemporary Issues in Leadership (pp. 259-278). Routledge.