CSR AND MICRO-ECONOMIC ANALYSIS 1 Economic and ethical issues of

CSR AND MICRO-ECONOMIC ANALYSIS
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Economic and ethical issues of corporate social responsibility
Student’s name
Course
Instructor’s name
Institutional affiliation
The city and state
The date

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Economic and ethical issues of corporate social responsibility
Corporate social responsibility can be defined as a situation whereby
corporate companies embrace the idea of considering giving back to the
society in which they operate. This is majorly done so as to create a
harmonious relationship between the company and the environment or
community they operate from. Today, over 90% of leading companies
worldwide produce corporate social reports relating to their operations
and activities. This is done so as to let the public feel the sense of
belonging and also to create a sense of belonging to the companies. This
principle has however had different impacts on the organizational
employees in a different manner including the economic and ethical
perspective altogether.
An ethical concern can be defined as a scenario or moment in an
individual or entity is meant to select a decision to take depending on the
available possible alternatives. The choice taken at this point is then
subjected to analysis form those concerned to determine if the choice
made was right or wrong. These ethical conditions can be evaluated it
terms of behavior of an individual or worker, employer through the way
employees are hired or treated during the due course of employment in
a given time frame (Tripathi and Pratap,2014).
Employees have a strong attachment towards corporate social
responsibility and they will be ready to work for firms practicing corporate

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social responsibility at lower wages. The employer doesn’t have to pay a
lot of money to get highly productive workers in the business. This is
therefore highly economical to the employers although there are high
chances that among such employees one can get unethical workers
(Tripathi and Pratap, 2014).
Corporate companies today have greatly embraced corporate social
responsibility within the communities that they operate. In the recent
years however, this aspect has lost meaning and value. Many of the firms
contribute donations that in a way politically driven. Other firms for that
matter only do it with aims such as determining how the public will view
their product, or if they want to correct a spoilt image. Such practices
however are not in any reflective of what corporate social responsibility
really stands for.
The other issue in this part of the paper lies in the fact that the employer
will decide to use corporate social responsibility as a way of reducing
employee salaries and wages. This is so because when hiring employees,
the employer will always include a statement on the job advert describing
the business as one which is involved in corporate social responsibility. As
a result the employer will be in position to get highly productive
employees yet at lower costs in terms of wage payments. Such would be
an unethical conduct and by offering an employment opportunity, the
employer feels that he or she has the liberty to pay less. This is what
would result into moral licensing by the employer in the employee –
employer relationship.