Socially Responsible Business: Management and Stakeholder Roles Essay

This essay delves into the realm of socially responsible business, emphasizing its significance in contemporary management practices. It elucidates the pivotal roles of shareholders and stakeholders in enhancing profitability and revenue generation within organizations. The essay further explores the triple bottom line model as a framework for cultivating shared value and sustaining competitive advantages in the marketplace. It underscores the ethical and moral dimensions of socially responsible business, highlighting its contributions to corporate social responsibility (CSR) and long-term sustainability. Through examples of companies like Target Corporation, Starbucks, Microsoft, and Nuskin, the essay illustrates the practical application of CSR principles. It also examines the interplay of stakeholders, shareholders, and ethical considerations in driving organizational success, as well as the importance of the triple bottom line model in fostering financial, social, and environmental responsibility.

Running head: Management
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Introduction
The essay talks about the socially responsible business. It explains that how shareholders
and stakeholders play a significant role to increase and maximize the profit and revenue of the
firm. It describes the triple bottom line model to create shared value and to sustain competitive
benefits in the market.
Socially responsible business
The socially responsible business is an ethical moral framework which advices to an
association and individual to do work for providing various advantages to the community across
the world. It is the responsibility and obligation of each and every individual to do task and
duties effectively and efficiently for maintaining a stability of the ecosystems and country. The
socially responsible business plays a critical role in every business to run the business smoothly.
The main aim of the socially responsible business is to maximize the profit and revenue of the
shareholders (Baumann-Pauly, Wickert, Spence & Scherer, 2013). It is the profit-oriented and it
determines the sustainability of the company as well as the environment. It plays a significant
role in CSR and sustainability. It makes positive and favorable contributions to gain long-term
mission and vision of the firm and it helps to minimize the harmful effects. It helps to maintain a
long-term relationship with society. It also helps to create a good working environment within
the organization and it maintains a unique and effective culture in the organization. It is
mandatory for every organization to understand and evaluate the social norms, rules, standards,
cultures and business practices of the specific environment. The socially responsible business is
also known as the corporate social responsibility. Along with this, CSR is an effective business
approach that contributes to sustainable enlargement and development by rendering various
types of environmental, social and economic benefits to the stakeholders (Homburg, Stierl &
Bornemann, 2013).
Let’s talk about an example; Target Corporation is a good example of socially
responsible business. It is one of the biggest discount store retailers in the United States. The
company makes an effective and positive contribution for protecting the environment as well as
communities. Further, various sustainable practices are being carried by the company. Starbucks
is another most important socially responsible company. The company maintains sustainability
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while providing coffee products to the customers in the market across the world (Cavusgil,
Knight, Riesenberger, Rammal & Rose, 2014). By using CSR approach, the company also
supports Ethos water that provides clean and pure water to people around the world. Further,
Microsoft is another biggest company who maintains sustainability at the workplace. The
company is the best example of corporate social responsibility which is maintaining a good
image in the market across the world. Apart from these companies, Nuskin company is a
personal care organization which focuses on the communities across the world. It is the one of
the largest company who makes contributions in CSR and sustainability (Korschun,
Bhattacharya & Swain, 2014). Many companies are giving contribution in corporate social
responsibility and sustainability by providing satisfaction to the various customers across the
world. CSR helps to improve the financial performance of the company and it evaluates and
determines the growth and success of the company. It also helps to maintain and build good
relations with customers across the world. It builds and develops loyalty, dignity, and honesty
among the customers in the market. CSR is an effective approach to attract more talent and retain
more employees around the world. It builds and develops reputation and goodwill of the
company (Fontaine, 2013).
Role of stakeholders, shareholders and ethics
Stakeholders, shareholders, and ethics play an integral and fundamental role in every
organization in order to maximize the growth and success of the firm. Stakeholders are known as
investors of the company who determines the results of the business by giving contribution in the
decision-making process. They play a significant role in the decision-making process and direct
management of the company. Stakeholders focus on the profitable products of the company and
they sustain and maintain the success and growth of the company. They maintain transparency
and flexibility in the organization (Niemuth, Hamann, Luschnat, Smolarz & Golombek, 2014).
Shareholders are called the owners of the company. They hold the share and stock of the
firm to maximize the revenue and profits of the firm. Shareholders play an active role in
corporate social responsibility and sustainability. They are responsible to attend the various
meetings of the company. Shareholders provide consent on the important matters whenever
required in the company. They help to minimize the cost of the company and increase the
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revenue of the firm. They maintain ultimate control over the company. In this way, they
determine the progress of the firm (Mason & Simmons, 2014).
In addition, ethics are the rules and principles of behavior based on the in ideas and
thoughts about what are right and wrong, what is good and bad. It is the area of study which
deals with the good and bad behavior of the people. It plays a significant role to conduct the
business activities and operations in an effective manner. It determines the code of conducts,
rules, regulations, and standards for the business to carry the business operations in an
appropriate manner. Further, business ethics provides guidance and direction to the employees,
community, and organization. It evaluates and analyzes the morality and behavior of the people
in order to reach the goals and objectives of the firm (Holland & Albrecht, 2013).
Triple bottom line model
The triple bottom line plays a crucial and integral role to generate shared value and to
gain competitive advantages in the market around the world. This model is used and
implemented by the companies to run the business in an effective and appropriate manner. It is
an accounting structure which divides into three parts include finical, social and environmental.
It is the wider concept which is used by the companies to generate more revenue and profit
within the organization. It also helps to measure and analyze the social responsibility of the
company. In addition, many companies use this model to maintain and build sustainability in the
environment. In today’s era, the companies are using triple bottom line model to enhance and
increase the performance and efficiency of the employees (Govindan, Khodaverdi & Jafarian,
2013).
Conclusion
Now it can be said that stakeholders, shareholders are playing a major role in every
company to run the business smoothly and effectively. In addition, business ethics are also
essential for every organization to maintain norms, standards and code of conducts within the
organization. Further, the company uses triple bottom line approach to achieve the goals and
objectives of the firm.
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References
Baumann-Pauly, D., Wickert, C., Spence, L. J., & Scherer, A. G. (2013). Organizing corporate
social responsibility in small and large firms: Size matters. Journal of Business
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Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.
(2014). International business. Pearson Australia.
Fontaine, M. (2013). Corporate social responsibility and sustainability: the new bottom
line?. International Journal of Business and Social Science, 4(4).
Govindan, K., Khodaverdi, R., & Jafarian, A. (2013). A fuzzy multi criteria approach for
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Holland, D., & Albrecht, C. (2013). The worldwide academic field of business ethics: Scholars’
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Homburg, C., Stierl, M., & Bornemann, T. (2013). Corporate social responsibility in business-to-
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Korschun, D., Bhattacharya, C. B., & Swain, S. D. (2014). Corporate social responsibility,
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Marketing, 78(3), 20-37.
Mason, C., & Simmons, J. (2014). Embedding corporate social responsibility in corporate
governance: A stakeholder systems approach. Journal of Business Ethics, 119(1), 77-86.
Niemuth, S., Hamann, L., Luschnat, K., Smolarz, P., & Golombek, S. (2014). CSR in the Coffee
Industry: Sustainability Issues at Nestlé-Nespresso and Starbucks. Journal of European
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