corporate-social-responsibility Overview

Running head: CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY
Name of the Student
Name of the University
Author Note

CORPORATE SOCIAL RESPONSIBILITY1
CSR and Maximization of Profits
It is normally said that ‘Corporate Social Responsibility’ [CSR] has the ability to increase
the quantum of profits in relation to the business organizations. This is the primary reason why
maximum number of the business organizations engage themselves in relation to CSR. However,
it may be stated that very few managers and executives have the actual knowledge in connection
to the research regarding this significant topic. Maximum managers and executives truly believe
that CSR can be utilized as an instrument to raise the revenue and profits. These executives
acknowledge the fact that CSR may be utilized in a particular business organization in order to
endorse respect in relation to the organization in the industry or market, which shall give rise to
increased sales and enhanced loyalty of the employee. CSR attracts better quality personnel in
connection to the organization. All such facets contribute to the profit earning capacity of the
organization. The aforementioned facets enhance the stock price in relation to the organization,
enhance the stock price in relation to the executives and also give rise to stock options that are
considered to be profitable.
According to Soares, (2019), it may be said that the results of a research study in relation
to CSR in various organizations reveal and demonstrate that activities relating to CSR do not
impact the profitability in a negative way, rather CSR impact the profitability in a positive
manner, although such impact is small.
Arguments have been forwarded by Milton Friedman in relation to the fact as to whether
CSR can be regarded as socially desirable and whether CSR contributes to maximization of
profits. Provoked by such arguments certain economists have explored the circumstances or
situations in which CSR may be economically and financially justified. It has been stated by such

CORPORATE SOCIAL RESPONSIBILITY2
economists that a particular organization identifies and acknowledges the social activities that are
desired by the employees, investors and the consumers, and afterwards integrates such activities
in connection to the objectives relating to maximization of profits (Orlitzky, 2015).
Issues relating to an Organization
In the intricate and multifaceted environment of the global business in the 21st century,
organizations are faced with several ethical issues. Businesses bear the duty or obligation to
establish ‘codes of conduct’ as well as ‘ethics’ that should be accepted and followed by every
individual in relation to the organization.
The most vital ethical issues faced by the businesses are trust and integrity. A
rudimentary comprehension in relation to integrity involves the idea regarding the conducting of
affairs of business with adequate honesty and the assurance to treat all customers in a fair
manner. A high degree of faith and trust should be developed between the customers and the
business. These are regarded as the key factors in relation to the success of the organization.
Various employees have various differences, which should be respected when they work
in the organization. An ethical reaction includes hiring of diverse labor force and administering
equal opportunity for all.
A convenient process to explore ethical dilemmas and recognize ethical actions involve
gathering facts, assessing any substitute actions, give effect to a decision, analyzing the decision
for justice and impartiality and reflecting regarding the conclusion. Such decisions should protect
rights of employees and customers.