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Impact of Social Innovation on Corporate Social Responsibility In the present market economy, social innovation should not replace Corporate Social Responsibility (CSR) but should enhance it. Some scholars have shown that whereas innovation has been an integral part of a company’s survival it was not part of CSR (Carroll and Shabana, 2010). In the past, CSR was applied in areas of citizenship duties and operation licences; however, this is not sufficient in the modern complex business environment (Googins, 2013). Recently, multinational companies have lost their standing in the community and many view businesses as part of the problems plaguing the society. Nonetheless, the reduction in public sector resources and its power has put more pressure …show more content…
The concept of social innovation has metamorphosed the way companies do business. No longer do companies only consider the short-term shareholder value, but now firms consider the social and physical environments in which they operate. It, therefore, goes without saying that this is only achievable through proper accountability. The advent of social media has given the power back to the consumers, and this has brought about change necessitating the companies to also value their customers—if not more—as they do their …show more content…
First and foremost, is the factor of co-creation. For sustainability to be achieved companies must ditch the top-down approach and apply the opposite. Business executives must involve other stakeholders, both internal and external, to ascertain what needs to be done and how to do it. This is co-creation. For instance, the co-designing of products is a co-creation approach, where customers are involved in the product development process ensuring the end product satisfies the triple bottom line. Moreover, businesses should make sure they practice co-creative planning. All stakeholders should be involved in the planning process, and this would make certain that the company’s initiatives have an impact on the society. Another approach is bottom-up and it makes the employees the central cog in the innovation process. Such a concept, when applied to sustainability, shifts the focus from the happenings at the management level to what decisions the mid and front-line level employees make. The lower level employees are the ones who take daily actions that could make or break a company’s sustainability potential. A bottom-up approach has a multiplier effect since it is easily visible to others and becomes quite difficult to thwart. Furthermore, the daily decisions made by mid-level employees incorporate the views of the
The topic of corporate social responsibility is play a key role to run a business and has become one of the standard business practices of our time. In current, most successful companies whether big or small enterprise for instance Apple, lnc. and Krotron has engaged in CSR because it is a good way for companies to benefit themselves while it also benefiting society. And in order to obtain benefits that can give them the advantage over their competitors.
When I think about social responsibility I think of one’s character. Character is based on morals and beliefs each person has. Knowing ones character is directly related to the type of social responsibility they maintain, therefore informing you of a person’s likely intentions. This holds true for a business. There is always someone behind every decision that is made, good or bad.
The world is facing several environmental problems so there is a need of sustainability and green practices in the business. Those green practices will fasten-up the process of company and also contribute in cost-reduction (Berns, et al., 2009). The increased use of technology will also improve the sustainable practices in the business. In the post-bureaucratic area the financial profits are not the sole aim of the big and responsible companies. Those company officials also need to give equal importance to their corporate social responsibility and Australia Post’s officials are doing that.
Corporate social responsibility is in many ways is tied to the values and ethics that a business believes in. While CSR encompasses the economic, legal, ethical, and discretionary responsibilities of organizations, business ethics usually focus on the moral judgments and behavior of individuals and groups within organizations. In their text, BUSINESS AND SOCIETY: ETHICS, SUSTAINABILITY, AND STAKEHOLDER MANAGEMENT, Carroll and Buchholtz's give a four-part definition of CSR that incorporates the multi-faceted nature of social responsibility. The expectation that businesses will produce goods and services that are needed and desired by customers and sell those goods and services at a reasonable price, is the key to the economic responsibilities that are cited in their definition. Organizations are expected to be efficient, profitable, and creative to keep shareholders welfare in mind. In the western corporate structure, fair competition in the marketplace is not only the leg...
McWilliams and Siegel (2001) define CSR as, “actions that appear to further some social good, beyond the interests of the firm and that which is required by law.” (p. 117) Corporate social responsibility is considered both strategic, in that it yields a firm benefits, and non-strategic, in that it encompasses an observed behavior (Burke and Logsdon 1996). There is also a perception that CSR encompasses a zero-sum trade-off with the economic interests of the business. It is somewhat accepted that accepting CSR strategies will be a more long-term payoff, while entailing short-term costs, leading modern businesses to abandon it in order to appease the interests of shareholders.
Since the last decade, Corporate Social Responsibility (CSR) has been integrated in policy of many companies due to the fact that it helps to increase a positive social impact on people, environment and enhance firm reputation. Most businesspeople seem to agree that CSR provides only advantages; for example, increasing product differentiation that can appeal to consumers, decreasing operating costs in recruiting and retaining employees and reducing turnover costs (The Financial Times). However, companies appear to have a hidden agenda - an underlying financial purpose - behind CSR. For this reason, this essay will indicate contradictions against CSR and will argue that corporations which practice CSR do not always perform well financially.
Fleming and Jones, in their book, The end of CSR, fundamentally question the existence of Corporate Social Responsibility because they think it ‘never really began’ (Fleming and Jones, 2013). The reason for the authors’ abovementioned stance is highlighted in the quote where they assert that ‘social value is subordinated to economic rationality’ in capitalism (Fleming and Jones, 2013). The current government provisions follow the same logic and try to outsource education, healthcare in order to implement business ontology and maximize profit. They agree with Friedman’s view on capitalism that businesses do not have social responsibilities. Therefore, every action of business is taken to fulfill its ‘sole purpose’ (Friedman). They consider that CSR evolved to pursue the same goal practices, including ‘marketing, branding, recruitment and employee motivation’.
With increased media presence and the constant changes in technology, the eye of the public scrutinizes businesses now more than ever before. Everyone has access to all aspects of a business at the touch of a button. Nothing can be hidden from consumers anymore. With a company’s search for profit, they must strive to create a positive image in the public and remain conscious of their reputation. This is largely where corporate social responsibility plays a role.
Misani & Tencati, 2008). As a result, companies are devoting greater energy and resources to CSR initiatives (Bhattacharya & Sen, 2004). Porter and Kramer (2002) argue that organisations can gain the greatest competitive benefit when CSR activities offer unique value for beneficiaries while in accordance with company’s core competencies and capabilities. Thus, these activities must intersect between the economic gains and the social benefits.
Stuart Hart, in a business article, discusses the tough task for companies to make a sustainable global ec...
Porter along with Mark Kramer. In this article, the authors emphasize on the importance of creating shared value on the strategic level of an organization vs corporate social responsibility which is viewed a separate moral obligation for the sake of company’s reputation and making profits. According to the authors, shared value must be embedded into the core value and strategy of business. What the authors of the article are implying is that awareness of social economic challenges is growing making them clearly visible. Businesses and their legitimacy are now viewed as part of the problem. CSR is considered as a scheme to make money and an area which is separate from its core business. Economists believe we should raise the bar and embed the concept of creating shared value on the core strategies of business. CSR activities are externally determined whereas, Creating Shared Value (CSV) activities are more company specific therefore understanding and legitimacy of value chain is needed for sustainability, for example the products and customers being served. CSR activities are limited to CSR budget whereas Creating Shared Value is mobilizing the entire budget of corporation to impact social issues. Creating Shared Value is a genuine way to restore the legitimacy of corporations as results are measured not just by profitability but by the social and economic value created. Companies who
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
Social media is pertinent in use of communication throughout today’s organizations. There are many social media platforms that allow organizations to convey communication to potential consumers, stakeholders and the public. “It is essential for leaders to integrate these technologies and seek the best way to use social media and networks to the advantage of the business” (Billington, 2012, p.1). Business owners find that keeping up with current technology trends is essential in having a competitive advantage in the market place and having a strict set of standards and strategy is important in quickly adapting to social media trends.
Corporate Social Responsibility (CSR) is a commitment of businesses to developing policies that incorporate responsible practices into daily business activities to improve the wellbeing of the society. Many people are constantly debating whether or not CSR should be legally recognized or not. Some people think CSR should not be enforced at all and they think CSR is interfering with the laissez-faire, as it is to create an environment in which businesses are not free from government intervention. People who support CSR say that CSR helps increasing business profit for owners and at the same time it improves the quality of life of businesses’ employees, communities and the society. This paper will seek to prove that CSR is valid means of promoting workers rights, labor rights, consumer protection and respect for local communities as well as discussing the impact of CSR on society.
Corporate Social Responsibility is all about the effort that a company applies that might be more what is being required by the environmental protection groups. Also, it is a responsibility that a company should take for its effects on the environment and on an impact for a social well-being. Moreover, Corporate Social Responsibility it is all about the ways that the companies manage with the process of their business which gives a positive influence on the society. Generally, the companies have to give an answer for their operation process such as the quality of their company’s management of the people and also, the quantity of the company’s impact in different areas of the society.