High cost may be a significant limiting factor to organizations aiming at answering to their social responsibility call. Profit is simply a necessary enabler for a company to achieve its true purpose of doing something worthwhile Handy, 1990. Social Responsibility a Matter of Corporate Strategic Management. A study of business news related to the 100 largest U. Social Marketing In the past decades, the marketing environment has been changed radically.
Northampton: Eward Elgar Publishing, 2007. The argument raised here relates to whether corporations should actively invest in activities that promote the social good. These are the monetarist and the ethicist theories. But most businessmen are not concerned about integrity as they conduct business dealings on a daily basis. The company is achieving all these, by focusing on galvanizing a passionate network with our stakeholders, nonprofit organizations and the civic leaders for innovative, positive change. This statement raises the question of whether directors can act in any way to increase profits.
An individual or organization ethical responsibility is to act, recognize and interpret on certain values and principles according to given standard that exist in a locality or context Treviño, et al. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. The first area I will address is products that are being offered and ideas on how to work with the community. The trend towards socialbly responsible practices among the business sector is long overdue and the discussion and implementation of this topic is imperative for all businesses to consider strategically. The businesses would be benefitted by being concerned about such societal concerns as unemployment, inflation and so on.
In the financial and corporate world, corporate social responsibility is given with a positive impact on performance. Furthermore, management is so heavily involved in enormously imposing tasks of managerial functions that it will not be desirable to impose an additional task of social responsibility. Such an action is considered unethical. Some of those ways I will pin point in the next few paragraphs. Consumers expect goods and services to mirror socially and environmentally accountable business conduct at reasonable prices.
Corporate social responsibility is therefore viewed as a control mechanism to ensure that multi-corporations are responsible for their actions Werther and Chandler 70. Berkley Ltd Books: Daft, R. An effort to help the bottom line rather than to actually benefit society? It addresses a range of environmental, technical, political, economic and policy issues within and across corporate boundaries. By the middle of the first decade of the twenty-first century, almost 400 French companies had joined the United Nations Global Compact. It is certainly a potential strategic tactic to gain public support to sustain a competitive advantage. However, executives in companies like Fannie Mae made it a trick to collect significant bonuses each year.
Management should also institute alcohol and drug rehabilitation programmes and other measures that assist employees to stay physically and mentally healthy. Since the primary purpose of a commercial organization is to generate value for its shareholders, it is only acceptable that the organization engages in activities which generate profit. Pharmaceutical companies have always donated drugs and other equipment needed for the success of such free medical fields globally. These regulatory frameworks have global ramifications that businesses engaging in international trade cannot take for granted Hopkins, 2004. It can be characterized as implicit rather than explicit driven by corporations' self interest. Most of the times it is wrongly associated with donations and give-a-ways by the organization but this is not even the part of the foundation of social responsibility.
It is essential for all the enterprises to focus on corporate social responsibility which can help the organization creates long-term sustainability for corporate success. In the old days cutthroat capitalism, social responsibility was hardly thought of. Furthermore, the common public has lofty expectations of the private sector with regard to responsible and ethical behavior. When the issue of an electric company that cut supply to a customer for non-payment upon which the customer died as a consequence was presented to Friedman, he applied the Kantian view to justify their actions. But if you take it seriously— if you adopt it as a management philosophy— it leads to certain distinctive behaviors and choices. Having seen the ways a company can fulfill its social responsibility mandate, what are some of the benefits of doing so? The actions of a few persons may seem safe on a small scale but on a large scale such actions could be devastating. Interestingly, this does not mean that multi-national corporations are necessarily suffering.
A deontic constraint is a principle that assigns a value to individual agents over others , and in the case of corporate social responsibility, it could be argued that the rights of the shareholders should be protected in preference of the rights of the whole of society. Employees are choosing to work for companies with strong values. A Three-Dimensional Conceptual Model of Corporate Performance. It means for consumers better, safer, and quality products, for employees' pride, retention, and being an employer of choice, and for the entrepreneur, it is strategy to differentiate from rivals, for policy-makers about building trust, for suppliers about the partner of choice and for the communities about pride, sponsorship, and inclusion. This may be in the form of reducing energy wastage, conserving water, recycling, reviewing the integrity of supply chain amongst others. It does not appear to be a systematic activity there.
Executives and directors that behave unethically create significant shareholder dissatisfaction, as demonstrated by the many recent examples or corporate misbehaviour. Ethical leadership would be a manifestation of this kind of business obligation. Universities and business schools are doing their best to educate. Excellent executives are aware that their long-term prosperity is founded on sustained good associations with a broad range of persons, groups, and organizations. This definition provided individuals with categories with which to quantitatively state the nature or kind of obligation that business had toward society. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. .