|Categories:||Business Corporate governance Social responsibility|
Most corporates and companies are created for the sole reason of making profits. Well, some people will sugarcoat it and say that they are meant to help people or make people's lives easier or even create employments but the bottom line, motivating factor and key purpose is to generate profits. As a fact, if the corporates stopped realizing profits, they will care less if people are benefitting or not. This is when you start hearing of liquidation of corporates and the like (Hunnicutt).
This paper is going to take an argumentative perspective whether or not the corporations should adopt policies of Corporate Social Responsibilities. First, will define and explain what a Corporate Social Responsibility is and its significance in the todays society; why or why not should it be adopted and the reasons behind each.
Corporate Social Responsibility can best be defined as the voluntary form of regulation that a corporate integrates into a business model for the benefit of the society around them. It goes hand in hand with the spirit of law, ethics and even societal good will that works towards creating a good and smooth cohesion with the general public (Haerens and Zott).
Personally, I am for the motion that corporates should indeed adopt such policies. Corporates should not only be based on profitability rather than acceptability by the society. Although the two do not always go hand in hand, some relationship can be feigned out of them and for a good cause. First, CSR (Corporate Social Responsibility) sees to it that the community around is not affected by activities of the corporate. A corporate that has adopted CSR will see to the minimized pollution of sound, water and atmosphere in general. Such are the companies that will treat their waste prior to disposing them because they actually do care for the people around as well as the environment.
Secondly, there is a correlation between social and financial performance of a corporate. Ten times out of ten, a company with a good social cohesion with the public is better placed at performing better financially as compared to the otherwise. No one wants to associate with a corporate that is insensitive to the society. Investors, shareholders and even customers will repel from such and this contributes to the overall downfall of the corporate (Timpere).
Thirdly, CSR can be used as an advertising technique. It is said that example is better than precept; CSR gives corporates a chance to prove their real life generosity and purity of intentions through actions rather than using magazines and brochures. Most consumers believe in charitable corporates and their loyalty is won just like that.
Nevertheless, there are some limitations associated with CSR. First, we all know that there is less progress in trying to please. This process involves a diversion of priorities as well as distraction of the company from business roles. Safe to say, to some extent the impact that CSR has on financial outcomes is almost neutral.
Secondly, there are unrealistic expectations associated with CSR. A corporate making large profit is expected to meet high roles that are sometimes unreasonable. It is as if CSR is put in place to watch over and limit the power of corporations.
In summary, although CSR has its disadvantages, the benefits associated with the same are way too much to be overlooked. The shortcomings of CSR can be minimized for a better social cohesion between corporates and the general public.
Haerens, Margaret and Lynn M Zott. Corporate Social Responsibility. Detroit: Greenhaven Press, 2014.
Hunnicutt, Susan. Corporate Social Responsibility. Detroit: Greenhaven Press, 2009.
Timpere, Adam R. Corporate Social Responsibility. New York: Nova Science Publishers, 2008.
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