BA 301 Wk. 1 Assignment; Social Responsibility of Business
Corporate Social Responsibility and Its Role in Business
· Research the term “corporate social responsibility;” define the term and discuss its role in business.
The requirements below must be met for your paper to be accepted and graded:
· Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.
· Use font size 12 and 1” margins.
· Include cover page and reference page.
· At least 80% of your paper must be original content/writing.
· No more than 20% of your content/information may come from references.
· Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
· Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.
References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.
Corporate Social Responsibility and Its Role In Business
In today’s modern business world, corporate social responsibility is becoming a major part of organizational activities. Most corporations and businesses seek to maintain a positive outlook and reputation to the public and society as by so doing has positive impacts to their organizations. Businesses feel that by fulfilling their corporate social responsibility, they stand a chance to enjoy a competitive advantage in the market over their rivals. Organizational managers are innovatively coming up with more ways to improve their social responsibility and enjoy a competitive edge while at the same time upholding the company’s reputation in the eyes of the general public that composes of its customers who are the major consumers of the businesses’ goods and services. Therefore, this paper seeks to discuss the aspect of corporate social responsibility and its role in business.
Corporate social responsibility (CSR) is therefore the continuing commitment by businesses to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large, (Mallen Baker, 2011). CSR can also be termed as the organizations’ social mandate beyond its democratic responsibility to go a step further in improving the social and economic development of the business stakeholders. These stakeholders include the company staff, customers, suppliers, owners and competitors.
Traditionally, CSR was viewed as a company’s philanthropic act to giving back to charities and the society, but in today’s modern corporate world, CSR is viewed as a strategic business model whereby organizations invest in the communities in their areas of operation. As the organizations exponentially grow and burst in the glory of its success, more desire is emphasized on improving the welfare of the communities around and giving back to the society. Although not initially legally mandated to enforce social responsibility, companies are actively and competitively indulging in the act in order to boost its public reputation. According to Mackey and Barney, (2007), they posit that as organizations continually increase their profit base, they are compelled to share their bountiful wealth with the community. Hence, they invest back to the community by initiating major protects that help in the economic and social development of the community.
CSR generally encompasses business ethics, corporate social performance, stakeholder management also addresses the ongoing concern on global corporate citizenship. Throughout the world over, organizations are been called to take charge and responsibility of their operations and the resulting impacts of their operations on the society and environment where they are operating in. More emphasis is now put on sustainable corporate social responsibility. Sustainability refers to an organization’s activities, typically considered voluntary, that demonstrate the inclusion of social and environmental concerns in business operations and in interactions with stakeholder. This sustainability can be achieved through various organizational reform policies such as cutting on emissions, proper disposal of waste products and adoption of environmental conservation policies to enhance environmental protection. Organizations are also improving sustainability through CSR by providing social amenities geared towards improving the welfare of the community. This is done through the provision of various community based services such as education, medical facilities and services and also community sensitization on various contemporary societal issues.
CSR plays a pivotal role in businesses and crucially contributes to the daily success of the business operations. According to an article run in the wall street journal, the author Bruce Nolop suggests despite CSR generalizing majoring on the social and economic welfare of a society, shareholders too stand to maximize their value. The article posits that shareholders stand to multiply their earnings. It’s argued that CSR increase multiple by which earnings are valued. The earning multiple is made possible by enhancing company reputation,broadening the organizational marketability to potential investors who value CSR as an investment prerequisite and an asset and reducing the perceived risk. Shareholders too stand to maximize their value through CSR by increasing the time horizon. CSR being a long term organizational project, might reduce the company’s stock value in the short term but in the long term, the stock value of the company stock value typically appreciates. Thirdly stakeholders stand to benefit from externalities. The cost of delivering the social amenities is borne by the consumers as it’s reflected in the prices of the company’s products and services. CSR also helps stakeholders in identification of employees and customers. It helps in recruiting and engaging employees especially for millennials that seek to work for companies with exemplary corporate citizenship
CSR plays a pivotal role in environmental protection. Companies are now advocating for green energy, less and better waste management and reducing their emission levels. All this is in view of enhancing the organizational reputation and conserving the environment to be of benefit to the community living nearby.
CSR also plays a role in transfer of technology (TOT). Large multinational companies conduct valuable research and employ many people in the public sector. Through TOT, the local community stands to gain valuable knowledge on the organization’s operations. Later on these knowledge can be used for the communities own advantage.
Organizations with a reputable CSR program are in a better position to attract skulled labor and talent. With the ever increasing organizational desire to attract skilled talent in a competitive labor market, CSR play an advantage in soliciting of this vital talents as potential job seekers want to work for companies with a reputable CSR.
CSR ensures closer ties between the corporation and the community. Through the organizations involvement in the community’s social and economic welfare, a better relation is established and brings the rapport and harmony needed for smooth organizational running.
In conclusion, corporate social responsibility is a major undertaking in any business. Organizations stand to benefit a lot as a result of CSR while at the same time improving the society’s welfare by contributing towards its social and economic development.
Nolop Bruce, (2014). Four Ways Corporate Social Responsibility Helps Stakeholders. Wall Street Journal. Retrieved from http//:www.wsj.org
Kotler, P., & Lee, N. (2005). Corporate social responsibility: Doing The Most Good for Your
Company and Your Cause. Hoboken, NJ: John Wiley & Sons.
Mackey, A., Mackey, T. B., & Barney, J. B. (2007). Corporate Social responsibility and Firm Performance: Investor Preferences and Corporate Strategies. Academy of Management
Baker Mallen, (2011).Definitions of Corporate Social Responsibility - What Is CSR? Retrieved from http//: www.mallenbaker.net