The sample paper on familiarizes the reader with the topic-related facts, theories, and approaches. Scroll down to read the entire paper. Introduction Corporate social responsibility(CSR) refers to the managers are not only create profit for shareholders, but also assume the responsibility for employees, consumers and other stakeholders.
Corporate social responsibility requires companies to exceed traditional goals of profit-worship and make contribution to public welfare in the working process. Companies spend more time and resources in managing social responsibility to coordinate the benefit between shareholders and other stakeholders. Corporate social responsibility can achieve the sustainable development of society and economic.
In this essay, firstly, I will introduce the corporate social responsibility, and then I will explain why companies need to speed expensive time and resources in the CSR, thirdly, I will show the way how to achieve the CSR. Main Body Already it is fiendishly hard to define a corporate social responsibility. There are two main views which are classical and socioeconomic views.
In classical view, management has only social responsibility to get the maximise profits. It mean that company’s social responsibility is only satisfied with the shareholders.
Here is a case of the Manville Corporation in United States. Fifty years ago, its senior management had found that asbestos which is one of its products caused fatal lung disease. As a matter of policy, management decided to hide the fact from affected employees. Why? Profits! In the mid-1940s, the company replied the lawyer that their policy can save more money.
That might be true in the short term, but it surely wrong in the long run. The company was forced to file for bankruptcy in 1982 because of the thousands of lawsuits about asbestos. Until 1988, the company emerged from bankruptcy.
But they got huge liabilities. They had to pay US$2. 6 billion in cash and bonds. On 1 April 1996, Manville Corporation closed the company permanently and there is a independent trust fund continue to pay out the liabilities in Manville’s name. In socioeconomic view, management’s social responsibility exceed classical view and include making contribution to society’s welfare. It generally refers to achieve the benefit while base on ethical values, comply with legal requirements, and respect for people, communities, and the nvironment. So, managers need to coordinate the benefit between shareholders and other stakeholders. Toyota Australia installed a 350,000 litre underground stormwater tank in its new corporate headquarter in Melbourne.
The huge tank collects stormwater from the roof and used to flushing toilets and irrigating gardens which are surround the buildings. Toyota build water tank can save water for the society and decrease expense in water, this action is subjective. European Commission emphasize that the CSR is an independent behaviour which is decided by the companies, nobody is compulsive, and it concerted the relationship between company and society. Thus, many corporations do not like to increase attention in CSR before they have been censured by the Greenpeace, media and human-rights organisations. For example, in the early 1990s, Nike was boycotted by large group of consumers. Why? Because the New York Times and other media disclose that the labours in its factory in Indonesian were reviled.
In general, Companies supply goods and services, because the market economy system offers incentives if the companies do it. Market economy operates according to Adam Smith’s invisible hand. Companies contribute social interests to get intangible benefit such as goodwill. Corporate social responsibility can be a long-term economic performance. This action achieve the sustainable development of society and economic. Avon Products Inc. was being socially responsible when it started its Breast Cancer Crusade to provide women with breast cancer education and early detection screening services.
After 14 years, this project has increased more than US$400 million in 50 countries worldwide. Brazilian cosmetics manufacturer Natura developed sustainable development projects with farmers and small communities. It is socially responsible. Why? Through each of the programs, managers have protected and improve society’s welfare. (Robbins, Bergman, Stagg & Coulter 2008). Nowadays, more and more companies are conscious of that in order to keep powerful in produce and compete in a constant changing market, they need to become socially responsible.
In the last ten years, globalization make the earth as a country. The development of technology results in most companies lost the dominant position. In this globalization completive environment, companies want to improve their ability to get profits and avoid risks. How can they do it? Devoting expensive time and resources to managing their social responsibility. Because of globalization, skilled employees, stable consumers and investors become more and more important. CSR can connect the employees, consumers and investors in an mutual benefit.
So, successful corporations need society to ensure that they can get enough good workers, government policies, consumer markets and national resources. At the same time, a healthy society needs successful companies to protect and improve welfare. Insurance Australia Group(IGA) has been consider with the global warming for some time. They decided that paying more attention to prevent global warming, but not just paying compensation in the end. Global warming caused more storms, more storms can cause more compensations, more compensations cause expenses raise up and then the income of the company does not increase. In a series of cycle, companies and society get less than they have paid. It is a vicious cycle.
Many companies want to get profit through the CSR. It is hardly distinguish whether this kind of CSR is good or bad. Some people think it as mutual benefit, and something to celebrate; others regard it is hypocritical. And, even some companies think that CSR is just show the name on the Giving List. Is CSR then mostly for show? It is hardly to identify, because CSR has many different styles and is started by many different motives. For most companies, CSR is little more than a cosmetic treatment.
Big multinationals also show their CSR criteria, it is pretty. But they have never achieve it. The tragic happened and oil spill show a corporate culture at BP that always ignore worker safety and environmental standards. If BP can increase precautions, many accidents will not happen. Ironically, the company just finished a very successful advertising campaign, show itself as environmentally friendly an does better than other oil companies. BP makes a perfect marketing work. It shows that BP is a corporate social responsibility advocate.
In fact, all the action which BP does are face job. Essentially, BP cannot carry out its corporate social responsibility. These actions called ‘greenwash’ and also called ‘faux CSR’. When we devoted expensive time and resources to managing our social responsibility, we did not want to get this result. How to achieve the real corporate social responsibility? Typically, the more closely connected to a social issue is to an entity’s business, the greater the opportunity to leverage the firm’s resources and benefit society.
For example, Since1999, Optus has been a major sponsor and partner of Kids Help Line, which is a free confidential telephone counselling service for young people who are aged 5 to 18. Conclusion Companies should devote more time and resources to managing their corporate social responsibility. CSR in generally means that management achieve sustainable development between company’s profit and society’s benefit. If companies pay attention to CSR, it can refer to increasing their competitive force in the global market.