Corporate Social Responsibility

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Many people believe that they have a social responsibility to take care of their community and the people within that community. The community can expand from local and regional to national and international in scope. Social responsibility in not limited to individuals, but many businesses and organization have joined the call for social responsibility. Corporate Social Responsibility, CSR, is when business and corporations make this a priority in their operations. Two questions come to mind, why a company needs to practice CSR and how can they do it?

To address why companies need to practice CSR, Liu and Liu in their article, “Implementing Corporate External Social Responsibilities Strategies Through, Organizational Design and Operations”, the authors, Liu and Liu, discuss the need for CSR in corporations. The corporation’s moral standard determines its obligation to its stakeholders, external and internal, and its commitment to CSR. Three things compose CSR, “what these moral standards should be, who are the stakeholders, and what kind of responsibilities corporations should accept” (Liu and Liu, 2009, p. 79).

A corporation’s primary focus for many years has been its shareholders. As corporations have broadened their focus, the needs of the stakeholder have a greater priority. Some corporations have neglected their external stakeholders. Chinese companies show more interest in internal stakeholders, shareholders and employees, and seldom consider the external shareholders (Liu and Liu, 2009, p. 79).

Responding to the external stakeholder’s has its benefits. Public attention to company’s CSR has its business advantages. The external stakeholder perception of a company’s external performance, its finances, the qual...

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...benefits many in a company’s community. The stakeholders provide valuable input in determining which CSR better matches the company’s philosophy and moral code. With the global stakeholders providing input, a company may discover that CSR mandates from foreign employees, consumers, and communities differ from those in their home countries.

Works Cited

Liu, S., & Liu, L. (2009). Implementing Corporate External Social Responsibility Strategies Through Organizational Design and Operation. Journal of International Business Ethics, 2, 79-83. Retrieved from www.americanscholarspress.com/content/BusEth_Abstract/v2n109-art8.pdf

McKnight, L. (2011). Demystifying Corporate Social Responsibility: Four Key Steps to Success. Greater Kansas City Community Foundation. Retrieved from www.gkccf.org/sites/default/files/resources/2011-GKCCF-White-Paper-Demystifying-CSR.pdf

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