SOSC 2340: A Critical Analysis of Corporate Social Responsibility

This essay provides a comprehensive analysis of Corporate Social Responsibility (CSR), examining both its benefits and drawbacks for businesses and society. It references various academic perspectives, including Milton Friedman's view on profit maximization versus social good, and discusses t...Read More

Running Head: CORPORATE SOCIAL RESPONSIBILITY
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CORPORATE SOCIAL RESPONSIBILITY
System04121
12/27/2019

CORPORATE SOCIAL RESPONSIBILITY 1
Corporate social responsibility is kind of global isolated corporate which is also self-
regulating and its main focus is to contribute to the goals of the society, CSR is a thing which
is considered at an organizational level and it is seen as a privacy policy for the firm and it is
important for the companies to align it with their business model, for an organization or a
firm the implementation of CSR goes beyond the compliance with the regulatory
environment and engages interest to do good for the society. CSR is good as well as bad for
society. Some people like Milton Friedman (1970) have contended that the social
responsibility of corporate is to make a revenue and that the job of management should not
include the pursuit of the public good or social and ethical values. Others argue that the goal
of running a successful business can involve and be consistent with “doing good.” This essay
is going to discuss both sides of CSR (Cheng, Ioannou, & Serafeim, 2014).
Firstly the essay will discuss the importance of CSR for the society as well as the
business, some people highly believe that it is incredibly important that the company
operated in a manner which could help in demonstrating the social responsibility and this is
not a kind of legal need, it’s a kind of good practice for the company to take into
consideration, for example mainly the social as well as the environmental issues. The ethical
practices and social accountability are a significant portion of the business success.
A research done by cone communications and the equality global CSR study in the
year 2015, states that 91 percent of the global customers expect the business to function in a
res[possible manner and to address the environmental and the communal issues, around 84
percent say that they but accountable products whenever it is conceivable for them
The statistics above show that the consumers in the world today are conscious of the
significance of the social responsibility and vigorously buy the products from the business
which operates in an ethical manner (Christensen, Morsing, & Thyssen, 2013).

CORPORATE SOCIAL RESPONSIBILITY 2
Some of the welfares of company social responsibility include, the chief one is the
improved image of public, this is one of the most important things as the first thing any
consumer sees in the brand is in public image of the company on the basis of this the
customers buy the products. For instance: staff of the company volunteering for an hour at the
shows of charity will make a brand that is dedicated to serving others and as an outcome, that
brand will become more favorable to the customers (Kolk, & Van Tulder, 2010).
The next is augmented brand awareness and recognition if a company or brand gets
dedicated to ethical practices that then spread the news, more and more people because for
this reason hear about the brand or the company which again increases the awareness about
the company. The next one is an advantage over the competitors, if a company tries to help
the society and tries to contribute to doing good for the society then the company gets an
edge over the competitors and in such cases the customer switch from other companies and
gets engage In the brand.
The last one is great employee engagement and the benefits for the employs, similar
to the engagement of the customer; a person really needs to be sure that the staffs are
conscious of the CSR plans. It’s established that workers like operational more for a business
that has a good community image than one that doesn’t. Also, by showing that the company
is dedicated to things like the rights of humans, the company becomes much more likely to
entice and recall the top applicants. There are also a variety of welfares for your staff when a
company embraces the CSR activities. The workplace becomes a more optimistic and
creative residence to work, and by endorsing belongings like volunteering, the company
inspires professional and personal development.

CORPORATE SOCIAL RESPONSIBILITY 3
Moving ahead, the essay will talk about the ways in which CSR is not good for the
business, the CSR activities and the CSR attachment of the companies are receiving in the
way of commercial achievement. CSR agenda has various dangerous consequences. CSR is
harmful to a commercial for two connected details: it diverts from what trades must be
attentive on, and it weakens the good responsibility of the corporate.
The aptitude of the business to achieve and then recall adequate profitability to sustain
themself and move ahead is not a very relaxed thing for any business, one out of the two
businesses fail in the first 5 years and after 10 years less than one of the three live. There is
no formula for the success of the business but it is important for the business to focus on the
needed foundation (Kim, Lee & Kim, 2010).
CSR is a kind of distraction tools for the business, imposing the goals which are
different from the commercial success of the business, a business that takes the responsibility
other the maintainable success weakens the main emphasis of the company from its profitable
responsibility and goals and then it lessens from attaining the objective of the primary
business.
Apart from this the practice of CSR is something that inspires and invites more
widespread and instructive regulations for the commercial, whether it is in the procedure of
unpaid codes of conduct or statuary rules, both of the things inhibit the focus of the business.
Through thoughts and ethical weights and codes of conduct, CSR is strengthening the current
fences feat in the way of commercial progress and reality.
The agenda of CSR also makes it problematic to focus on the shortages as it leads to
undermining the proper direction of the business and its accountability. The main problem
with this is adding up the extra social responsibilities and resulting from the accountabilities

CORPORATE SOCIAL RESPONSIBILITY 4
Business works in a certain manner, first on evolving the product or a service for the
marketplace of the clienteles and second it focuses in producing the goods or delivering the
services in a manner that permits it to be sold for a certain price which helps in building a
specific return and the third one id focusing on the conversion of the revenues in the real cash
and not expenditure that cash on the wasteful wrong stuff. There is no such business that
survives for a long period of time. If it has the incorrect products or services, creates them
with below-average competence, and fails to produce and uphold adequate cash flow from its
processes (Bénabou, & Tirole, 2010).
There are various disadvantages of CSR for any business and some of them include
the following, the first one is that CSR costs a lot of money to implement and this is also one
of the chief drawbacks of CSR as it costs high for small businesses. The main or the major
companies can still afford to assign the budget in reporting the budget for CSR but this is not
good for the small business.
The next disadvantage of this CSR is that there are battles with the motive of profit,
for the businesses the cost of CSR can be one of the main obstacles. Some critics trust that
CSR can be a workout in futility. The administration of the company has a fiduciary duty to
the investors and CSR directly opposes this thing. The main responsibility of the
shareholders to executives which is to maximize profits. A manager who abandons incomes
in favor of some welfare to culture may be supposed to lose his job and be substituted by
somebody for whom incomes are a priority. (Kitzmueller, & Shimshack, 2012).
The last issues that CSR brings in are the implementation of CSR in the business
strategy. Therefore the company should be aware of the interests and the demands of the

CORPORATE SOCIAL RESPONSIBILITY 5
public. A business should provide positive outcomes that reduce the effect of the negative
effects and this thing also impacts the public (Tian, Wang & Yang, 2011).
Business strategy is a driver of CSR firms that should evaluate the benefit and the cost
of analysis while applying the new plan of the CSR because implementing the new for CSR
can bring in additional expenses that can also impact the operations of the business and
nature of CSR makes it riskier (Lindgreen & Swaen, 2010).
Another main and common issue connected to the implementation of corporate social
responsibility is globalization. The global and the multinational companies operate more than
one geographical region and within the different industries because business “norms and
standards” controlling framework and stresses of stakeholders can differ for CSR across
countries, areas, and outlines of business (Du, Bhattacharya, & Sen, 2010).
Extra issues emerge due to the expansive extent of exercises encased to incorporate
social obligation programs. Which are regularly dependent upon discourse? Be that as it may,
most projects incorporate three key columns: monetary development, biological parity, and
social advancement As a result of the more extensive part of CSR doings reachable to
organizations, it is enticing to connect every single of them. Regardless of that, it would be
botch for organizations by including in each part of corporate social duty exercises
Be that as it may, organizations should endeavor to discover social and natural
procedures for which they claim some portion of the arrangement, For instance, Portage
Engine Organization's help for bosom disease explore (social advancement), as commendable
a reason as it might be, does not have any vital connection to the organization's center
quality; building vehicles and trucks. A progressively appropriate CSR action is bolstered
examine in elective fuel sources (biological equalization) for the car business

CORPORATE SOCIAL RESPONSIBILITY 6
Organizations endeavoring to execute corporate social duty procedures ought to
likewise know the contrast amongst key, compassionate and forcible CSR. Organizations
busy with CSR packages have documented a difference in the competence of corporate social
obligation movements that are energetic, philanthropic and forced. Vital CSR movements
(partner the executives) can give an advantage of an upper hand which is hard for different
organizations to duplicate. In any case, philanthropic CSR (settling social issues) is
efficiently imitated Forced will, in general, be more open than active and must to be kept left
from (El Ghoul, Guedhami, Kwok & Mishra, 2011).
For instance, ventures on cutting edge innovation in an investigation to make voting
vitality bases would be seen as a key corporate social obligation action. In any case, giving
cash to the Unified Way would be seen as selfless. CSR movements that give longer-term
consequences and benefit a bigger assembly of partners will be audit as social as an
alternative of value-based
Pioneers who center around a communal methodology (a key way to deal with)
corporate social duty is regularly accomplished long haul disrepute of the organization and
determination, in overall, get extra prominent advantages finished customer devotion
Corporate social duty is somewhat other than a commercial design or craze.
Administrations that must continue important to new ages and who need to help persons
deprived the world over while increasing their very own revenue and proficiency will profit
by grasping CSR

CORPORATE SOCIAL RESPONSIBILITY 7
References
Lindgreen, A., & Swaen, V. (2010). Corporate social responsibility. International Journal of
Management Reviews, 12(1), 1-7.
Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing business returns to corporate
social responsibility (CSR): The role of CSR communication. International journal of
management reviews, 12(1), 8-19.
Bénabou, R., & Tirole, J. (2010). Individual and corporate social
responsibility. Economica, 77(305), 1-19.
Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to
finance. Strategic management journal, 35(1), 1-23.
Kim, H. R., Lee, M., Lee, H. T., & Kim, N. M. (2010). Corporate social responsibility and
employee–company identification. Journal of Business Ethics, 95(4), 557-569.
Kitzmueller, M., & Shimshack, J. (2012). Economic perspectives on corporate social
responsibility. Journal of Economic Literature, 50(1), 51-84.
Christensen, L. T., Morsing, M., & Thyssen, O. (2013). CSR as aspirational talk. The
organization, 20(3), 372-393.
Tian, Z., Wang, R., & Yang, W. (2011). Consumer responses to corporate social
responsibility (CSR) in China. Journal of business ethics, 101(2), 197-212.
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Business, 6(03), 117.
Kim, Y., Park, M. S., & Weir, B. (2012). Is earnings quality associated with corporate social
responsibility?. The accounting review, 87(3), 761-796.

CORPORATE SOCIAL RESPONSIBILITY 8
El Ghoul, S., Guedhami, O., Kwok, C. C., & Mishra, D. R. (2011). Does corporate social
responsibility affect the cost of capital?. Journal of Banking & Finance, 35(9), 2388-
2406.
Kolk, A., & Van Tulder, R. (2010). International business, corporate social responsibility,
and sustainable development. International business review, 19(2), 119-125.