Corporate Social Responsibility
Overview
What responsibilities do businesses have? Who takes priority when decisions are made? Are shareholders the most important to consider, or is it the customer? Should a company simply meet the required regulations, or attempt to go above-and-beyond the requirements? All of the questions involve corporate social responsibility. Corporate Social Responsibility can be defined as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” .
Cash is King
Many organizations and individuals feel that businesses simply have the responsibility to make profits . These companies or individuals place emphasis on satisfying the desires of its shareholders, primarily through high profits. Generally, these companies will spend only enough money on social responsibilities to comply with regulations. The money spent going above the required amount is considered to be spending someone else’s money. “Insofar as his actions in accord with his "social responsi bility" reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money” . They feel that employees can individually donate their time or money to contribute to society. CSR is Overrated
Ultimately, trade-offs must be made between the financial health of the company and ethical outcomes . Companies must make profits the priority if forced to decide between the two. Deborah Doane talks about four myths of CSR in her periodical review for Stanford Social Innovation. The first myth is that “The market can deliver both short-term financial returns and long-term social benefits” . Wal-Mart is a great example of the first myth. In the past few years, the company has faced lawsuits and accusations of poor labor practices, but the company has still flourished to one of
What responsibilities do businesses have? Who takes priority when decisions are made? Are shareholders the most important to consider, or is it the customer? Should a company simply meet the required regulations, or attempt to go above-and-beyond the requirements? All of the questions involve corporate social responsibility. Corporate Social Responsibility can be defined as “the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large” .
Cash is King
Many organizations and individuals feel that businesses simply have the responsibility to make profits . These companies or individuals place emphasis on satisfying the desires of its shareholders, primarily through high profits. Generally, these companies will spend only enough money on social responsibilities to comply with regulations. The money spent going above the required amount is considered to be spending someone else’s money. “Insofar as his actions in accord with his "social responsi bility" reduce returns to stockholders, he is spending their money. Insofar as his actions raise the price to customers, he is spending the customers' money” . They feel that employees can individually donate their time or money to contribute to society. CSR is Overrated
Ultimately, trade-offs must be made between the financial health of the company and ethical outcomes . Companies must make profits the priority if forced to decide between the two. Deborah Doane talks about four myths of CSR in her periodical review for Stanford Social Innovation. The first myth is that “The market can deliver both short-term financial returns and long-term social benefits” . Wal-Mart is a great example of the first myth. In the past few years, the company has faced lawsuits and accusations of poor labor practices, but the company has still flourished to one of