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Corporate Social Responsibility - Assignment

   

Added on  2020-04-01

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CSR 1CORPORATE SOCIAL RESPONSIBILITYAuthorCourseProfessorUniversityCity, StateDate

CSR 2CORPORATE SOCIAL RESPONSIBILITYCompanies regularly engage in activities that go beyond regulations that are set out by law when they build social relations in environments where they operate. This is referred to as corporate social responsibility (CSR). It involves all the programs and initiatives by a company in order to improve the social welfare of its employees, the surrounding community and the environment. It can also be referred to as corporate citizenship. CSR has evolved over time and can be traced to its beginnings in the 1920’s. The latest theory that is associated with CRS is that of doing business sustainably. There are varied arguments for and against CSR, with some stating that it does not add value to a company while the contrary opinion negating that assumption. Arguments for CSRThe argument for corporate social responsibility will be based on the stakeholder theory which is more holistic and covers more issues when analyzing this topic. Phillips (2007), states that the stakeholder theory interrogates business relationships within the context of their environment. Its underlying assumption is that obligations and rights are set by certain considerations. People who lives are impacted by the operations of a business entity have the obligation and right to participate in directing its affairs. It is based on stakeholder ethics and provides a road map that links corporate decisions to that of the individual affected by it. The theory lists the people and groups that will be affected by the operations and include the following. Company owners/shareholdersThe company owners form part of what is known as the stakeholders holding the cardinalposition. The company shareholders are tasked with the economic responsibility to ensure that profits are maximized within the context of the collective bottom line. This refers to the profit

CSR 3that is quantified in terms of human welfare and not limited to money alone. This broad definition of profit distinguishes companies that do business purely for monetary reasons and those that do not. This inclusive definition of profit incorporates the surrounding community and ensures that they also gain from the operations of the company. This may be in the form of employment opportunities, schools and hospitals built or scholarships given.Company employeesThis includes the line workers together with the management of a company in a particulararea. They are charged with duty that is dual within the context of the theory: to represent the interest of the shareholders while at the same time balancing them with those of the local community (Whelan & Fink 2016). They thus ensure that the interests of all stakeholders are taken into consideration, minimizing conflict and maximizing profit for all in the short and long-term. They are required to engage with the local community and ask for their input regarding damage to the environment, usage of resources like water and pollution. The interest of the local community ensures that there is less conflict and that harmony is maintained which is good in minimizing disruptions for operations. CustomersThe customer is also treated as stakeholders who are expected to establish the identification and reputation of the company (Eccles, Newquist & Schatz 2007). The relationship established between a customer and the firm is that of expectations that are mutual. The customer expects to purchase goods and services that have been produced ethically and sustainably. In the course of production, the interests of the local community have also been considered and met. The customer therefore makes the purchase with a clear conscience and can be a goodwill ambassador to promote the products of such a firm. This kind of goodwill that can

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