Its not just about making money for an organisation
Organisations do not work in individually and need to consider that making money is not the only objective of the existence of the organisation. They need to consider the impact of producing goods and services in the market and protect the environment, understand the need of our surrounding society, customers, supplier, government firms, tax authorities and anyone who is affected by their decision in the business world. Therefore business doesn't exist in isolation and not they should concentrate on making money only, but they need to think of their business decisions and their production method on the stakeholders. Stakeholders can be anyone in the market who is related to organisation and will be affected by the organisations strategies or the decisions. Therefore strategies need to be acceptable to all stakeholders and the investors. This is because employees depend on your business of the organisation. Employees need fairly paid jobs, and customers, suppliers and the local community are all affected by the organisations decisions and activities and impact of productions of good and providing of services on the environment. .
Corporate social responsibility (CSR) is to understand that organisations have more duties, and how their business' are influencing the world by their strategic decision about how to make profit in the market and how to help their employees to give the good money. Thus they need to think how they should plan their strategies which will have less or nil effect on their stakeholder and their environment and positive impact of their activities on the economy.I do not agree with the statement " This type of activity is often regarded as nothing more than expensive PR and that it adds no real value to society or return on investment for the shareholders" due to the following concept.What is corporate social responsibility?
Is a company responsible to the Society?
What is CSR - Explained by CAROL Model
Develop CSR PolicyIs company responsible to the society?
YES: Because of Enlighten Self - Interest
NO: Arguments by FreidmanYES: Because of Enlightened Self -Interest
A corporation has the same rights and responsibilities as a human being.
A corporation perceived as ethically sound are rewarded with more customers
Employees are more attached to work and more committed to socially responsible companies
Positive contribution to the society may be a long term investment in a safer, better educated and more equitable community create more stable context in which to do the business
Increase in customers
Increase in employees=
Increase in profit
Increase in Shareholders Wealth
Decrease in negative publicity
Un ethical behaviours likely to open up in future and company may have problem in meeting their liabilities for wrong behaviours
Companies may not be able to get loan due to un-ethical behavioursNO: Arguments by Freidman
Freidman says that a company has no responsibility outside of making profit because of the following:
Only human being have moral responsibilities e.g. companies do not have feelings
Government is responsible for the social issues
It is managers duty to act solely in the interest of the Shareholders
CSR make director generous for someone else moneyWhat is CSR - Explained by CAROL Model
Corporate social responsibility is to give stakeholder more their expectation. Carol Model is the best explanation of CSR theory.
Desired by the Society
Article name: Its not just about making money for an organisation essay, research paper, dissertation