Should Corporate Social Responsibility Be Mandatory

The purpose of this essay is to research the notion of CSR and uncover its true framework and outline what social responsibility truly means to corporate organisations, and whether it should be seriously considered to be a legitimate addition to the corporate framework of an organisation.

Based on my interpretation of CSR, I see it as a voluntary obligation that companies have promised to their stakeholders to fulfill by improving, or at least not harm, the environmental and social wellbeing. When companies engage in CSR, they voluntarily promise to, for example, carry the responsibility to protect the environment and take actions against bribe or other corruptive activities related to their business. It certainly has some positive influences to specific areas based on my knowledge gained from other classes; nevertheless, when judge CSR in the context of total impacts on our society and environment, it is obvious that CSR has failed its mission to lessen the negative impacts of business based on the evidences that provided by the author. Also, since there is a strong positive relationship between CSR behaviors and consumers’ reactions to a firm’s products and services, it seems to me, now, that CSR for the most companies is just a fancy cover that helps them to create or promote a good image and reputation. The recent case that shows the failure of CSR of Volkswagen even make me believe that CSR programs may be just a marketing or public relation exercise for many

In this article, “The Truth About CSR,” authors Rangan, Chase and Karim stress the importance in aligning a company’s social and environmental activities with its business purpose and values (Rangan, Chase, & Karim, 2015, 41). Outcomes of CSR programs should be a “spillover” and not a primary focus of a business, expressing concern towards social responsibility and corporations failing to contribute to society accordingly (Rangan, Chase, Karim, 2015, 42). There is a great deal of importance in companies refocusing their CSR activities on a primary goal and in providing an organized process for bringing consistency and discipline to CSR strategies (42). Rangan, Chase and Karim want corporations to understand why it is important for them to evaluate their CSR activities and refocus them towards the goal of reinforcing the firm’s societal and environmental actions, while also ensuring their actions add to the overall purpose and values of the corporation. According to the authors, even though

Moving on, the author will define a stakeholder and list their types. Furthermore, the responsibilities of an organisation towards its stakeholders will be highlighted in a table. In addition, the importance of performing CSR will be analysed along with the advantages and examples of CSR practices at Elephant House. Finally, the author will provide the challenges in practicing CSR.

These three strategic components can lead to successful CSR practices that improve the company’s image and profits, satisfy its stakeholders, and make a positive difference with regards to its social or environmental concerns. While the definition of CSR varies within the literature, I suggest that a customized CSR process that incorporates CSR fit, stakeholder engagement and strategic communications will lead to successful CSR practices.

There are four major parts of CSR which are philanthropic, ethical, legal and economic responsibilities. In other words, a company with more responsibilities can accomplish and fulfil their stakeholders (employees, customers, shareholders, local communities and society) form a better CSR. (Carroll, Archie B., 1991) They are benefiting each other. As CSR is not a law, it will not penalise the company that is not following. On the other hand, it can build up company’s image and bring good reputation that

Through the implementation of CSR, to create social and environmental benefits, from improving operational effectiveness, companies ultimately hope whilst increasing their opportunities to also increase their profits. If companies make known to their consumers of their enhanced operation of the social and environment areas from the introduction of CSR this can increase their profits. Consumers prefer to use companies that think about the environment. More and more people are becoming aware of the environment

Moreover, According to (PWK – UK, 2014), challenges of evaluating CSR Reports is the line between evaluating the quality of a given report or the quality of the CSR activities. Taking this into consideration, Grid analysis of this issue is discussed basing on two main cores pillars, that is, quality factors and content factors. As far as Content factors are concerned, it enables the quantitative values to the CSR strategy followed in addition to the activities performed by the company. The main purpose of CSR, is to bring out the good, and in the process make a difference in the community. However, the report also cautions the company against imposing the CSR practice to its employees during implantation of the CSR report, as this would have negative ripple effects to general company operation. This includes:

CSR is a highly controversial topic due to disagreements surrounding the field. Werther and Chandler (2014) defines CSR as ‘… the relationship between corporations and the societies with which they interact… includes the responsibilities that are inherent on both sides of these relationships”. The framework behind CSR tends to be broad with the ideas surrounding its importance changing from business to business. On a basic level, a corporation’s goal is to maximise profits. The role of technology and globalisation in today’s society means that, a company’s relationship with society is essential in projecting a positive image (Werther and Chandler, 2014).

Social responsibility or also called Corporate Social Responsibility (CSR)- is the firm’s engagement (voluntarily initiated) in and its compliance (legally mandated) to environmental, social, and governance issues (The Foundation, 2014). Also, is based on stakeholder’s needs being financially sustainable, and CSR can come from both corporate or not-to-profit organizations. CSR has seven categories; Leadership, vision and values; Marketplace activities; Workforce activities; Supply chain activities; Stakeholder engagements; Community activities (Eurofound, 2017). CSR originated in the 1950’s, when people believed that the actions of corporations are closely related to society and the public, and should conform to and satisfy social values

CSR has several definitions and can be comprehended differently by various stakeholders. One of the definitions mentioned by ACCA (2014) is “a company’s obligation to all of its stakeholders across all of its activities with the aim of achieving sustainable development in the economic, the social, and the environmental dimensions”.

The importance and eminence of Corporate Social Responsibility (CSR) across the business world started to increase during 1998-2007. Role conflicts often arise when competing demands like business goals and social goals are in question. The increase in the sense of social responsibility,stakeholder pressures and concerns for the environment has heightened the focus of businesses on CSR. A business that fulfils its CSR sufficiently can expect an improvement in its financial performance,enhanced brand reputation, a reduction in its operating costs,long term sustainability, a boost in staff commitment,innovation and production,better risk management,good relations with its stakeholders and development of closer links with customers. However,in today 's world CSR is not being dealt with serious and proper attention hindering the success of businesses.Business ethics concern the study of proper trading policies and practices regarding potentially controversial issues.They are guided by law and are based on a certain scheme that businesses should follow in order to gain public approval and be successful.CSR embraces responsibility for the behaviour of companies and motivates them to have a positive contribution and impact

Social progress, economic development/production and environmental preservation are the three fundamental keys to sustainable development. While there are various definitions on CSR, this report will outline what is meant by the term “CSR” and how it is connected to the strategic purpose of an organisation. It will also critically asses the results of CSR in reference to various stakeholder expectation’s looking at both good and bad

“ What are the main characteristics of CSR strategies and what influence do they have on financial performance?”

The concept of corporate social responsibility (CSR) has been developed for decades and it has been conceptualized in a number of ways. The business only can get success if there is interaction between all stakeholders in the company. The business organization of any form whether it is small or large, are seen as a creation of society and their survival is only dependent on the society. Socially responsible firms view CSR as a source of competitive advantage by attracting a higher quality and quantity of job applicants (Fombrun and Shanley 1990; turban and greening 1996). CSR can be defined as that strategy which manages the business processes to produce an overall positive impact on society. CSR is a concept in which the company decides how to interact with its stakeholders on a voluntary basis involving social as well as environmental concern. According to kotler and lee (2005) CSR is “ an obligation undertaken in order to improve the welfare of the society through on demand business application and contribution of corporate resources”