1.0 EXECUTIVE SUMMARY 2.0 INTRODUCTION TO CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY As a result of modern corporate scandals and rapid development of international business environments, social responsibility (SR) has become a key aspect of corporate competitive contexts. (Brammer, Williams and Zinkin, 2007). Businesses are under increasing pressure to incorporate SR amongst their profit-driven aims and have become increasingly accountable for their social and environmental actions. Increased interest in CSR developed in the mid 1990s as consumers began to lack their former trust in companies due to both environmental and financial scandals and it became noticeable that society was moving towards values incorporating harmony, quality of life and environmental conservation (Carrasco, 2007) Additionally, major corporate failures over the past two decades have resulted in increased demand for stronger, corporate governance (CG) rules. (Sui, Wright & Evans, 2007). Superior CG rules are needed in order to preserve the integrity of corporations, financial institutions and markets and the health and stability of world economies. (OECD Website) 3.0 THE IMPORTANCE OF CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY IN BUSINESS CG and SR continue to evolve and are no longer viewed the same as years ago. Businesses are now required to take on a broader range of responsibilities to society and provide to human values that were previously seen as unrelated to a company’s operating success. (Dennis et all 1998). These concepts remain a challenge for international companies as they are increasingly pressed to respond to stakeholders’ requests for additional accountability, as the gap between society and businesses continues to... ... middle of paper ... ... next cycle of corporate governance reform, Keeping Good Companies, 61, 5, pp.280-285 Head, B (2009) The benefits of being good, Information Age, April/May, pp.21-23 Phillips, P (2006) Learning’s contribution to the Triple Bottom Line, Chief Learning Officer, 5, 10, pp.52-54 Microsoft (2005) Finance Agenda - The business value of good corporate governance, viewed 22nd June 2010 http://download.microsoft.com/download/3/5/e/35e89ed5-267c-4642-ad8b-46ecaf7b45d3/Business%20Article%20-%20The%20Business%20Value%20of%20Good%20Corporate%20Governance.doc Masaka, D (2008) Why forcing corporate social responsibility is morally questionable, Electronic Journal of Business ethics and organizational studies, 13, 1 pp. 13-21 Bowie, (1991) New directions in corporate social responsibility - moral pluralism and reciprocity, Business Horizons, 34, 4 pp.56-65
...Foundational Considerations in the Corporate Social Responsibility Debate’, Business Horizons, vol. 34, no. 4, pp. 9-18.
Windsor, D. (2001). The future of corporate social responsibility. International Journal of Organizational Analysis, 9 (3): 225-256.
Corporate Social Responsibility (CSR) is a movement that aims to promote a greater awareness of how business activities and decisions influence corporate environment, stakeholders, and society in general. Adam Lindgreen and Valerie Swaen’s article “Corporate Social Responsibility” addresses this broad topic in a more narrow direction of CSR implementation as it discusses the most important stages of this process. While this article relies only on the previous research, it provides unique insights into CSR and even challenges the common views of this concept as the authors thoroughly analyze their secondary sources.
Mackey, J. (2005, October). Rethinking the social responsibility of business. Journal of Reason, 10, 15-17.
In recent years, more people begin to accept the concept of corporate social responsibility. Companies also pay more attention to the activities of CSR and investment. In addition to face the pressure of the environment and the social moral level, the enterprise managers also have the responsibility of the company 's performance and the value of the shareholder 's wealth. Therefore, enterprises need to pay more attention to the relationship between corporate social responsibility and financial performance.
Before evaluating the writing of these authors, it would seem appropriate to state the generally accepted definitions of the terms “social responsibility” and “business ethics”. Paraphrased from several different sources, business ethics can be defined as the written (and frequently ‘unwritten’) principles that guide the actions and decisions of a company. Mainly driven by the organizational culture, they determine both the good and bad behavior and set the standards for decision making. In its most basic form, business ethics comes down to knowing the difference between right and wrong and choosing to do what is right because it is right rather than simply avoiding what is wrong because of its negative r...
Carroll, B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons .
Brian Schaefer, 2008. Shareholders and Social Responsibility, Journal of Business Ethics, Springer, vol. 81(2), pages 297-312, August.
Corporate Social Responsibility (CSR) is the way a corporation achieves a balance between its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. In general, when firms hold this wider encouraging role on the public by being engaged with stakeholders, a variety of profit can be produced for both company and the stakeholders. A key inclination is the combination of Corporate Social Responsibility (CSR) into the organization strategy, culture, mission and communications. By incorporating corporate citizenship into the company it is no longer an additional “nice thing to do” or something made to obey laws or regulations. Instead, corporate responsibility has become something business leaders and workforce want to engage in, frequently because executives who believe in the long-term see business profit. The four types of social responsibilities a...
In response to the brief presented case study, Company Q has stores in high crime areas, and has chosen to close these stores citing above average losses because of shrinkage or theft by both customers and employees.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
Friedman, M., (2007). The Social Responsibility of Business Is to Increase Its Profits. In W.
In the article, The Truth About CSR by Kasturi Rangan, Lisa Chase, and Sohel Karim, the importance that coherence plays in corporate social responsibility (CSR), is emphasized. Throughout the article, corporate social responsibility application, within corporations, is broken down into three theaters. According to the article, many corporations do not focus on their CSR programs, and usually see these CSR actions as a secondary responsibility following the responsibility they hold towards their shareholders. It is argued in the article that in CSR is a key and essential block for corporate success, focusing on CSR coherence throughout all three theaters will bring positive results along the way, possibly making the corporation
Berenbeim, R. E. (2006, May 12). Business Ethics and Corporate Social Responsibility. Vital Speeches of the Day, pp. 501-504.
While the concept of an individual having responsibility is commonly recognized, modern views have lead to the emerging issue of corporate responsibility. Business Directory.com defines corporate social responsibility as, “A company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. Companies express this citizenship (1) through their waste and pollution reduction processes, (2) by contributing educational and social programs, and (3) by earning adequate returns on the employed resources.” But such a concept has been much disputed since at least the 1970’s.