buy custom Corporate Social Responsibility essay

buy custom Corporate Social Responsibility essay For a long time, there have been endless debates on whether businesses should give back to the society, especially the communities in the vicinity of businesses. It can be argued that any person who establishes a business does it with the purpose of gaining profits and furthering personal interests. However, civil society and other advocacy organizations have been pressurizing business entities to give back to the community as a way of paying them back for allowing them to operate in their environment (Hughes 2008). Due to this, most corporations have felt obligated to give charitable services to the society, such as promoting health and education by building institutions to offer such services. Corporations also give back to the society though employing local personnel as well as improving infrastructural facilities, such as roads, building play grounds and places of worship. However, most corporations feel that by being socially responsible, their ultimate goal of making profits is compromised. The argument for this case is that, when a company focuses on making profits, in the end it will be socially responsible as all stakeholders will benefit from it. Therefore, corporations fulfill their social duties by pursuing profits and should not be pushed to forego this goal since by doing so the benefits that come with it will be lost. Do Businesses Have Social Responsibilities? Classical View As mentioned above, the social responsibility of corporations is to make profits since it is in such a pursuit that everyone benefits; shareholders gain profits from their investment whereas other stakeholders, such as customers get high quality products. For example, in the pursuit of profits, a company that deals with the processing of foods can focus on producing foods that are low fat and healthier so as to attract more customers. This will benefit the company in that more people will buy such foods hence increasing the company sales. On the other hand, customers will be healthy and avoid eating related diseases, such as obesity, diabetes, and blood pressure. According to McWilliams (2008), corporations end up improving social welfare by focusing on making profits. A theory of corporate social responsibility by Friedman concurs with Adam Smiths view that, when companies pursue the goal of making profits, the whole society benefits (Hood 1998). Friedman, in his classical view of social responsibility, argues that since the ultimate goal of any business corporation is to make profits, managers should never at any time use shareholders money to pursue social interests. Therefore, any money spent in any activity should proof to be worth it. Further, Friedman argues that businesses do not have any responsibilities and hence can not be held to be socially responsible, only their owners. As quoted in Hood (1998), Friedman holds the strong view that any business has only one social duty of making use of its resources and being involved in activities aimed at increasing its profits as long as it operates under the set rules. Moreover, in the pursuit of maximizing profits, companies end up delivering unique social benefits. In support of Friedmans views, Hood (1998), states that any private business fulfills its social responsibility only when it tries to make profits. Additionally, an argument by Visser (2007) is in support of Friedmans view that companies should be left to pursue the goal of making profits. In this argument, Karnani holds the view that by forcing corporations to be socially responsible through doing some acts of charity, shareholders in turn lose their profits. Therefore, any manager who would not focus on making profits for the corporation is going against the stakeholders aim of maximizing profits. These stakeholders include the customers, shareholders, government, generl public among others (Branco Rodrigues, 2007). In some cases, such managers can face dismissal. As a result of the pressure to give back to the society, some companies claim to be socially responsible only though talking, but no action accompanies such words (Haynes 2010). Therefore, companies according to Kalind (2001) should be left free to maximize their profits since at the end social benefits will be realized. Branco Rodrigues (2007) maintains that businesses do not owe anything to the society as long as they conform to the set rules and regulations. However, Janda Pitts` (2009) view differs with that of Friedmans in that, it supports some degree of dishonesty when undertaking any business activity. Janda Pitts (2009), in support of his pure profit-making view argues that dishonesty is part of the strategy for success in business since business people have lower moral standards as compare to the rest of the society. Moreover, Janda Pitts (2009) holds the opinion that as long as a business operates under the legally set of laws, it has no moral obligation towards the society. On the other hand, Friedmans view supports honesty in business, which according to Branco Rodrigues (2007), can be referred to as the constrained profit-making view. Another argument against corporate social responsibility is by the chief economist, David Henderson (Branco Rodrigues 2007). In his 2005 publication, Henderson argues that corporate social responsibility affects a companys resource allocation procedure (Branco Rodrigues 2007). His argument is that, when companies engage in CSR activities, they lose focus of their ultimate goal of profit making. This will in turn end up misappropriating company finances which will lead to losses. The losses will then increase poverty, since it will make the shareholders poorer (Sun 2010). Moreover, Henderson holds the opinion that CSR regulations or laws that are formulated to support CSR lead to decreased business operations, which will translate into ineffective markets, reduced wealth generation and increased social inequity and poverty (Branco Rodrigues 2007). Hendersons views in general support that businesses have the ultimate goal of profit making and wealth creation and, therefore, are not obl igated to serve the community in any other capacity. Branco Rodrigues (2007) is in support of the view that a businesss sole purpose is profit maximization. These authors argue that managers find it difficult to carry out their duties as well as to make decisions in cases, where the company has multiple objectives. Therefore, it is vital that businesses hold the shareholders interests of profit maximization close at heart so as to create wealth, which in the end will lead to more benefits to the society at large. Stakeholder View This is a theory that supports the involvement of companies in CSR activities. The theory holds the view that apart from shareholders, there are other groups that are interested in the actions of any business. These groups are generally referred to as stakeholders and are in one way or another affected by the actions of a business entity. Stakeholders range from customers, employees, suppliers as well as the communities around the business entity. This theory holds the view that a company should not only focus on profit maximization and wealth generation but should also strive to improve the welfare of its stakeholders (Roper 2007). Therefore, despite businesses being established solely as profit making entities, they have some responsibilities to the general public (McWilliams 2008). Other strong supporters of the stakeholder view are Janda Pitts (2009), who argue that, corporations are owned by interrelated groups of people who are affected by the actions of the corporations in diifferent ways, either positively or negatively (Branco Rodrigues 2007). Corporations should, therefore, embrace CSR so as to be sustainable and to brig forth benefits for all stakeholders. According to Cohen (2005), businesses should embrace moral values, since economics is deeply infused with ethics. Any business activity being undertaken should always strive to protect the interests of all stakeholders. For example, a cement manufacturing company has the responsibility of ensuring that all its employees always wear protective gear so as to protect them from work related disease, injuries among other dangers that may arise in the work place. This company also has the responsibility of ensuring that proper pollution control measures are put in place so as to ensure that the communities around them are not affected negatively. In addition, such a company has a responsibility to protect the environment from pollution as well as to ensure that it harvests natural resources in a sustainable way. This example shows that the shareholders will achieve their interests of profit making, whereas the community and the environment who are stakeholders will be protected from harm (Hart 2011). Another supporter of the stakeholder view is Sacconi (2004), who, in his three- dimensional conceptual model argues that, any company has several social responsibilities. This model describes CSR as having four categories that include legal, social, ethical, and philanthropic (Friedman 1970). Economically, any company is expected to produce high quality products that are good for customers, whereas legally it has the responsibility of conforming to the set rules and regulations. On the other hand, ethical responsibilities of a company include undertaking of business activities in a way that respect societal values, norms, and standards. The philanthropic category entails a companys responsibility to voluntarily support the society with the intention of improving its welfare. For example, an automobile manufacture industry has the economic responsibility of manufacturing vehicles that meet the consumers needs, while at the same time conforming to the governments regulations. Such a co mpany can also build an engineering institution for the community around so as to support science and technology in that community. In summary, the stakeholder view holds that corporations should undertake their activities with the aim of fulfilling the interests of all stakeholders. A strong argument in this theory is that, a corporation should establish good relations with all stakeholders so as to grow and be successful. Any business should not only focus on wealth creation and profit making, but also on improving social interests (McWilliams 2008). Businesses have been for a long time been pressurized to be socially responsible to enhance their short and long-term sustainability. However, this has been met by opposition from various economists who argue that the sole purpose of any business is profit maximization and wealth creation. Therefore, any deviation from this objective will lead to great losses for shareholders. The classical view has been supported by such authors like Friedman and Carr who argue that businesses should strive to make profits, while conforming to the set rules and regulations. This view holds that businesses are obligated to serve the shareholders interests only and hence are not obligated to serve the interests of the society. On the other hand, the stakeholder view supported by authors, such as Freeman and Carroll, calls organizations to be socially responsible. Generally, companies are urged to embrace CSR at all levels of their operations. By doing this, they are able to attract and retain customer s, investors among other key stakeholders, who ensure short and long-term growth of the business. In addition, the companies are required to fulfill ethical, economic, philanthropic, as well as legal obligations so as to be successful (McWilliams 2008). Buy custom Corporate Social Responsibility essay buy custom Corporate Social Responsibility essay Introduction Corporate Social Responsibility (CSR) is a form of policy where a business organization employs a self regulating mechanism that will provide the business with appropriate information. These policies ensure that the company complies with the set laws, ethical and international standards of there business activities (Grace, 2005). The main objective of Corporate Social Responsibility (CSR) is to encourage the companys actions and also support a constructive impact through its activities with the aim of conserving the environment and also maintaining a good relationship between the company and its employees, customers, shareholders, community and all the other members of the public (Garriga Mel 2008).. Corporate Social Responsibility (CSR) is a way in which the organizations incorporates the views and interests of the public in the decision making process of the organization as a strategy used by an organization to maintain the close relationship with the public (Ismail, 2009). It also encourages public interests into the organization by eliminating practices that will harm the great coexistence between the community and the organization; while promoting the growth and development of the community and customers of the organization. It should be noted that this is also a strategy that is being used by the organization to generate extra financial gains and also increase its customers outreach (Lantos, 1998). Incase the organization doesnt record any increase in the sales and customer improvement the organization has no reasons of continuing with its activities as it is a waste of time and resources. Therefore it has to stop undertaking the Corporate Social responsibly role and thus i ndulge in other activities that will increase its sales and productivity (Smith et al, 2006). 1. Marks and Spencer is a leading British retailer company that specializes in the selling of clothing and extravagant food products. The store headquarters is located in the city of Westminster, London with more that 700 stores in England and more than 300 more stores spread allover the world (Murray, 2009). The company had introduced a new Corporate Social Responsibility (CSR) strategy commonly known as "Plan A" (Marks Spencer Inc, 2010). The plan was launched as an initiative by Marks and Spencer MS January 2007; and will last for the next 5 years. It was intended to be used by the organization to ensure that it would be in a position of providing its customers with efficient environmental and ethical operations that will benefit the customers well being in the society (Garriga Mel 2008). Some of these measures that the company employed included the uses of Fair-trade products, use of environment friendly dyes on its clothes and sustainable fishing (Murray, 2009). As these aspects were seen as some important ways in which the organization can be able to conducts it business fairly and at the same time improve the relationshp that exists between the organization and its customers. The plan A that was initiated with the organization back in the year 1997 had vowed to undertake more than 100 commitments that were seen as the key factors that were seen as the greater challenges. These challenges were both in the organization and the entire universe some of these challenges they included the health, fair-trade (Partnership), climate change, waste products, and raw materials sustainability. With all these plans the companies was aiming at tackling these challenges and at the same time improve the livelihood of the communities in the world and at the same time benefiting from the social welfare of the customers and the community that is around the organization (Grace, 2005). The company will be in a position of making it as one of the major retailer store in the world by 2012; this is because it has been able to achieve and fulfill the key possible strategies that will be more responsive in ensuring that the organization relationship with its customers is improved. Thus the plane will ensure that the customers, employees and the surrounding community is in a position of becoming one of the most successful retail store organization in the world (Marks Spencer Inc, 2010). The first target that is set by the organization is to ensure that the organization is environmental friendly; this is by Becoming a carbon neutral organization. This is seen as the most pressing issue in the world today and this will add some credits on the organization as this will be seen as a good initiative used by the organization in conserving the world today. This is by reducing the rates of carbon gas emissions into the atmosphere; thus making it the friendliest organization as it is concerned with the environment of where it conducts its activities (Lantos, 1998). The organization will also be the most sorted after Retail Store Company this is when the organization implements its Corporate Social Responsibility that will help improve the lives of the people in the supply chain (Visser, et al 2008). This is well categorized when the organization will tend to strengthen the relationship that exists between the organization and its competitors. This is when the organization will negotiate with its competitors and thus come to a point of selling its products at a slight lower price that will be of great benefit for the customers of the retail store. With the implementation of this will definitely result to an increase in customers who will be purchasing their products from the stores; this is as a result of the store selling its products at reasonable and affordable prices (Smith et al, 2006). 2. The 2010 Mark and Spencers CSR report that was released by the organization ensured that the organization was in a position of achieving its 100 commitments that are supposed to be of greateer benefit the customers, employees, suppliers and the environment in general (Pitts, et al. 2009). This will subsequently make it easy for the organization to be able to supply and be of great benefit to the organization that is more beneficial to both the organization and the community around the organization. Plan A also known as the How we Do business ensured that the company was in a position of succeeding in the retail industry by ensuring that its 5 main objectives of the Plan A are successfully completed without interfering with the ways in which the organization performs its activities (Marks Spencer Inc, 2010). The organizations main way or Corporate Social Responsibility was aimed at ensuring that the organization fulfill the social, environmental and ethical performances this will efficiently ensure that the organization is in the point of facilitating the recommended plan that will oversee the success of the organization Plan A. It is noted that all these recommended commitments that were established and initiated in 1997 with the aims of ensuring that the customers, employees and the other stakeholders are incorporated in the decision making of the organization (Visser, et al 2008). In matters that pertain to the environment conservation the company has bee able to monitor its contributions in the emission of carbon in the atmosphere. This eventually made it easy for the organization to reduce and regulate the rates in which the environment is destroyed. This reduced the rate of emission of carbon into the organization by 8% (Marks Spencer Inc, 2010). The organization has also managed to reduce the rate of waste matters it disposes to the world by approximately 33% of the previously recorded cases. This has been as a result of sensitization that has been constantly been conducted by the organization on the importance of the waste disposal management (Ismail, 2009). In social welfare the organization has achieved in the improvement of the lives of the people who are less privileged in the society; this is from the initiative that the organization had implemented of buying green palm certificates. These would be used by the organization to raise money by employees and the customers in order to ensure the organization funds all projects. Such projects were directed and stated in the third world nations as a way of raising the social status of the of the people living in these critical situations. The organization has also achieved in its health plan; this is in both the employees and the customers. This is by introducing them into healthy eating habits that will help reduce the cases of obesity and heart failure conditions (Marks Spencer Inc, 2010). Thus the organization stated the selling of cakes and bread that contains marginally reduced calories; in view of the fact that they will pose no health risks on the people eating them and this is when its sells these products to the entire store it has worldwide. Buy custom Corporate Social Responsibility essay