Corporate Social Responsibility: A Critical Analysis

This assignment critically examines the implementation and effectiveness of Corporate Social Responsibility (CSR) programs. It delves into the challenges faced by companies in aligning their CSR strategies with social, economic, and environmental sustainability. The analysis highlights the importance of CEO involvement and consistent strategic planning for successful CSR execution. The text emphasizes the need for designing CSR activities that contribute to both societal well-being and organizational efficiency.

Running head: CORPORATION LAW
Corporation law
Name of the Student
Name of the University
Author Note

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Abstract
Most companies have been practicing some form of corporate social and environmental
responsibility with the common objective of contributing significantly towards the well-being of
the society as it the society upon which the companies not only depends but also impact either
positively or negatively. With the growing pressure to cloth Corporate Social responsibility
(CSR) as one of the business disciplines and the growing demand that every business initiative
should have a positive outcome is way too much to expect from Corporate Social
Responsibilities. It further distracts the organizations from its primary objective, which is to
bring the social and environmental responsibilities of the companies into line with the purpose
and values of the organizations. The CSR programs initiated by the business organizations
enables business to attract clients/customers enhance reputation of the company and improve
employee morale.
However, the CEOs and the board must possess adequate knowledge about the advantages and
restrictions of the CSR programs, while selecting an initiative that is beneficial for both the
company and the community. This research aims at outlining the potential of CSR in evaluating
the impact of CSR responsibilities of business organizations on the society. The research
provides a clear outline of the features of the CSR and to what extent fulfilling the corporate
social responsibilities aids a company to become a good corporate citizenship. It further explores
the factors that may act as a hindrance for a company to become a good corporate citizenship.

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Corporate Citizenship: An Overview
The term ‘corporate citizenship’ is related the fact that companies not only considers the
impact it has on the economy but also considers the impact it has on the environment and the
society. Corporate citizenships refer to the responsibilities that a business organization assumes
beyond the scope of the commercial relationship that it carries out in its day-to-day activities.
The concept of corporate citizenship encompasses both, an economic necessity as well as moral
responsibilities (Tai & Chuang, 2014). Corporate citizenship or commonly known as corporate
social responsibility is the persisting business commitment made by the business organizations to
make significant contribution to the economic development and behave ethically with a view to
improve the quality of workforce, local community and the society as a whole.
Potential impediments faced by companies in becoming a good corporate citizenship
CSR purports to bring about sustainability in the corporate culture and the business
activities carried on by the business organization in three ways, namely, social, economic and
environmental sustainability. It is imperative for the business organization to concentrate equally
on the three dimensions to ensure compliance with the corporate social responsibilities.
However, there are certain factors or rather potential impediments that tend to prevent the
company from becoming a good corporate citizenship.
On one hand, some of the business organizations consider CSR to be an exterior part of
their business and on the other hand, some of the organizations regard the corporate social
responsibilities to be an irrelevant issue for the business (Clapp & Rowlands, 2014). They
consider that the main objective of the organizations is confined to customer satisfaction only

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and gives it more priority to economic sustainability than to social and environmental
sustainability. It is often observed that focusing merely on customer satisfaction results in
ignorance towards the other important changes that could affect the business unexpectedly.
Despite the universally accepted principle of practicing ‘shared value’, which aims at
developing economic value in a manner that also, creates societal values, most of the companies
practice a complicated form of CSR (Muller, 2014). This cope of the multifaceted form of CSR
extends from philanthropy to the environmental sustainability and then to the attainment of
shared value. Further, one of the issues that impede the company from becoming a good
corporate citizenship is that most of the successful companies are seemed to give less importance
in incorporating CSR within their business strategies and objectives; instead, they prefer to
devise a strong CSR program that is in alignment with the purpose and values of the business
organization.
However, despite the fact that several companies clinch to the extensive perception of the
corporate social responsibility, they are often subjected to certain significant hindrances that
affects the implementation of the corporate social responsibilities carried out by the organization.
Apart from the issue that some of the companies perceives customer satisfaction as its primary
objective, thus ignoring social an environmental sustainability, the other significant factors
include absence of rational connections with the various CSR programs and lack of effective
coordination (Crane & Matten, 2016). Further, despite the efforts made to involve the CEOs of
the organization in the CSR programs, it has been observed that the CSR programs are usually
conducted and managed by the various internal managers in an inappropriate and uncoordinated
manner. The participation or involvement of the CEOs in carrying out the CSR programs is
seldom noticed.

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In the recent decades, there has been a gradual increase in the expectations of the public
with respect to business organizations. While the investors require the firms to maintain a profit-
making objective but the public has become aware of the significant impact that business
organizations have on the society and its environment. As mentioned earlier that the CEOs of the
business organizations hardly demonstrate any interest in participating in carrying out the
corporate social responsibilities or managing the CSR related programs, it is imperative for such
companies to initiate training programs for the managers who eventually conducts or manages
such programs. Lack of coordination may enhance complicacies relating to the conduct of social
responsibilities. Since various internal managers conduct the CSR programs they may have,
contradictory goals and the way of conducting the programs may also differ. Consequently, the
inappropriate coordination may ultimately have an adverse impact upon the society and the
environment as a whole (Mackey, 2014).
Further, the second issue hindering the company’s potential to become a good corporate
citizenship is that the CEOs of the company are not interested in contributing in carrying out the
CSR of the organizations; instead, they rely on various internal managers to perform the
responsibilities (Hur, Kim & Woo, 2014). One of the significant consequences of such omission
on part of the CEOs is the outcome of conducting the CSR programs in an inappropriate way.
The reason behind such inappropriate conduct is twofold: firstly, the managers are often nit
adequately trained; secondly, they consider their respective ways to be the appropriate way as
their superiors are less interested in checking whether the company is performing its CSR
effectively.

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Conclusion
Although the companies have adopted CSRs programs and policies but their lack of
willingness and determination about maintaining the three dimension, that is, social, economic
and environmental sustainability in alignment with the purpose and values of the company, often
lead to an adverse impact upon the society and the environment as a whole. Therefore, in order
to overcome these impediments and improve the performance of the organization in carrying out
its corporate social responsibilities, the companies must develop consistent and rational CSR
strategies. This initiative should be the taken by every Board member and the CEOs of the
organization who seldom take part in carrying out the corporate social responsibilities of the
organization.
Some of the CSR activities of an organization are not designed with a view to enhance
business developments directly and produce immediate profits. For instance, the activities may
include donations, involvement with community initiatives etc. The CSR programs must be
designed in a manner, which aims at delivering environmental and social benefits in certain
manner that aids the company in operating across the value chain, thus, improving the
effectiveness and efficiency of the organization.

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Reference List
Aßländer, M. S., & Curbach, J. (2014). The corporation as citoyen? Towards a new
understanding of corporate citizenship. Journal of Business Ethics, 120(4), 541-554.
Clapp, J., & Rowlands, I. H. (2014). Corporate social responsibility. The Essential Guide to
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Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Hur, W. M., Kim, H., & Woo, J. (2014). How CSR leads to corporate brand equity: Mediating
mechanisms of corporate brand credibility and reputation. Journal of Business
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Mackey, S. (2014). Virtue ethics, CSR and “corporate citizenship”. Journal of Communication
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