INTRODUCTION 1. This report seeks to prepare an explanation of what is meant by responsible business. It will be focused on a responsible business topic and also the nature and the importance of it will be discussed as well. The first responsibility of a business is how to gain and increase its profits. This is essential for a business in order to be healthy. So this report will show and explain what a Responsible Business is really in nowadays and how they operate under some circumstances. Then will follow an explanation and evaluation of the role of the government as an influence on responsible business behaviour. After that it continues with a review and evaluation of influences of ethical businesses approaching to responsible business. 2. Responsible Businesses are always legally structured as profit businesses. Most of the times they do not directly address social needs through their products or services or through the numbers of disadvantaged people they employ whereas, they create positive social change indirectly through the practice of corporate social responsibility. For example they create a philanthropic foundation, they pay equitable wages to their employees, they use raw materials friendly to the environment etc. A responsible business can be a huge company to a small family company which is employing people and workers. It’s main purpose is to be always profitable with as much increase as it can reach. Whereas it has to be RESPONSIBLE to them, to their employees and to everyone around them. Businesses helping people always lead to a mirroring back that helps the business. For example people will choose to shop there or they may choose to invest to that business. In 2000, the World Business Council for Sustainable ... ... middle of paper ... ...can be an arbiter of business responsibility to society through the application of tax incentives or tax credits. In good corporate governance, the management should be able to meet their social responsibilities, these include making sure that their products are not hazardous to people and to the environment, sharing their profits for the good of the community as a natural person or human being would do, donating to social causes, organizing activities to benefit the community. Other good corporate governance practices that overlapped with social responsibility is complying with applicable laws, setting good labor conditions for employees, providing good products to the community, helping the economy through fair trade practices, paying taxes and other obligations due to the government, making commitments to other persons, natural and juridical alike.
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...
Responsibility is a word used improperly too often in one’s everyday life. It is the state, to which one is acting accountably for something within his or her own power, control, and/or management. It is the ability to comprehend rational thoughts and make decisions within one’s moral compass. Beginning at a young age, we are taught the importance of responsibility on a daily basis. Whether it be on the basis of taking responsibility for foolish past actions, or behaving responsibly to develop one’s aptitude of dependability when tasks must be accomplished, the action of being responsible ultimately leads to adding meaning and value to one’s life. After reading The Responsible Company, by Yvon Chouinard and Vincent Stanley, one can begin to comprehend the true meaning behind utilizing corporate social responsibility (CSR) during business practices. Chouinard speaks about the moments in his career, where a company is encouraged and cultivated passed its ordinary human excellence to become more responsible when dealing with the many diverse environmental issues within the business cycle. Although there are many concepts and moments that Chouinard establishes as important, there are a few moments that seemed to have a deeper meaning and deserved another moment of reminiscence because it increased peoples’ sense of responsibility and capability to act responsibly.
The earliest impressions that the book makes on the mind of the reader is that “Corporate Social Responsibility” is not just about some kind of vague theories but supports all that it preaches with practical applications. Labelling the book as “a Bible for today’s corporate citizen”- as the publisher does on the flap of the book- may be stretching it a bit too far, but “Corporate Social Responsibility”, does provide thoughtful answers to a number of vital questions on how a corporation could do most good for itself and its
Social responsibility in business is very important because it goes hand in hand with creating shareholder wealth. A business should strive to increase their positive effects on society and decrease their negative. In the case study we were given we were asked to examine Company Q’s relationship with social responsibility. Company Q is a small local grocery store located in a metropolitan area. After careful review of Company Q it is very evident that their social responsibility is poor and needs improvement. Recently they closed a few stores in higher crime areas blaming the closures on the stores consistently losing money. Company Q has finally begun to offer
Enterprises lay high emphasis on corporate social responsibility instead of being profitable tools. It is essential for all the enterprises to focus on corporate social responsibility which can help the organization creates long-term sustainability for corporate success. More specifically, corporate social responsibility can be referred as a process which is aim to embrace responsibility for the organization’s actions. Moreover, it can have a benefit to the people who are regarded as stakeholders, like employees, consumers and communities, which is based on its activities. Also, Tai (2014) states that corporate social responsibility is considered as corporate citizenship which tends to be an obligation that can protect, foster, and enhance
In conclusion, a business should act ethical and socially responsible in order to make our world a better place, just for the goodness. Acting according to business ethics may result more profits in the long process but it is not ethical to be ethical for the rewards, therefore it shouldn’t be a goal. Businesses need to build good reputation and it is possible by corporate social responsibility and ethical behavior. In this new era of a new media, unethical acts of companies don’t go unnoticed and unpunished; therefore they need to be more careful. Although they can just comply by regulations and put aside corporate social responsibility, business ethics can turn out well for everyone.
It has been shown that there are many different areas in which a company may choose to focus its corporate social responsibility. The top area of focus in corporate social responsibility is on environment. Other areas that should be considered in the development of corporate social responsibility programs are education, health, nutrition and employment. “Social responsibility investment combines investors’ financial goals with their obligation and dedication to factors that ensure the well being of society such as environmental friendly practices, economic growth and justice in society” (Anderson 9). These elements not only epic corporate social responsibility, but also represent ethical standards of a company. It is unethical for some individuals to own so much and earn so much, at the expense of other suffering members of society. It is also unethical for companies to damage environmentally that result in illnesses and loss of life. It can be concluded that Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all
...s and lack of rigor. One of the most asked questions is: What does it mean to say that a "business" has responsibilities? A corporation is an artificial thing meaning it has artificial responsibilities, but "business" as a whole cannot have responsibilities, even in a vague sense. When trying to understand what it means to have responsibilities, we have to examine the doctrine of the social responsibility of corporations and ask who it precisely refers to. There is no tangible responsibility that can be placed upon an inanimate building. Presumably the individuals who are to be responsible are the bosses, which means individual proprietors or corporate executives. Most of the discussion of social responsibility is directed at corporations, so in what follows mostly neglect the individual proprietors and speak of corporate executives because they are in-charge.
The article “The Social Responsibility of Business is to Increase its Profits” is written by a famous economist Milton Friedman. Friedman in this article implies that shareholders are the main drivers of the corporations and he believes that it is to them corporations must be socially responsible to. The goal of any corporation is to maximize profits and return the portion of these profits to shareholders for investing in the corporation. The shareholders can themselves decide which social causes to take part in rather than assigning a corporate executive to decide on their behalf. Friedman argues that a corporation must have no social responsibility to society because its only concern is the increase profits for itself and its shareholders.
Social responsibility is the part of the framework of an organization or individual which makes up an obligation to act for the benefit of society. There are many different ways act out social responsibility. The social responsibilities of a business can be classified according to the businesses relationships to the general public, customers, employees and investors. The companies that make their product or service with the rooted mindset of benefiting the community and the world around them do this by providing things like scholarship funds, all natural products, biodegradable storage, and or just by treating the consumer as well as the employees as individuals rather than a corporate dollar sign. Businesses may exercise
Every business has a social responsibility toward society. That means to maximize positive affects and minimize negative affects on the society. Social responsibilities includes economic-to produce goods and services, that society needs at the price, that satisfy both-business and consumers, legal responsibility-laws that business must obey, ethical responsibilities-behaviors and activities that are expected of business by society, but are not codified in the law, philanthropic responsibilities-represent the company’s desire to give back to society (charietys, volunteering, sponsoring).
Both of these areas are the lifeblood of the company, and any benefit to them should not be overlooked. Before a company can become proficient at corporate social responsibility, they must first know its definition. Corporate social responsibility is defined as actions that can be taken by a company to ensure they are adhering to ethical and social responsibilities of the day. These corporate social actions are self-regulatory, as a company strives to adhere to guidelines while also going above and beyond being a Good Samaritan in the business world (ECA, 2015). This can place certain businesses at the forefront in customers mind because of the example they are setting in the marketplace. A company going above and beyond the call of duty to work towards a more philanthropic approach in the surrounding community is a perfect example for corporate social responsibility. Going deeper into the definition, corporate social responsibility acts like a “double bottom line” for a company, as they strive to achieve financial goals, but also achieve their social mission out in the community. Once a company is aware of what the concept of corporate social responsibility is, they can now implement it and start to reap the many benefits of its
However, there can be more definitions about what Corporate Social Responsibility can be. For example, Corporate Social Responsibility can be the commitment which is continuing for a business to behave ethically and bring to economy the development to improve the workforces’ of the whole society and local community and their families’ quality of life. Corporate Social Responsibility is also known as the obligation of a company to serve the society’s interest and of course its own. With the help of the Corporate and Social Responsibility, social and environmental concerns companies can integrate into their business and stakeholders operations.
In the current time of growth and progression, individuals should know that how a business not only flourish but sustain itself. Making profit is one of the main targets of every corporates but it must not be the only one. When an individual builds a company in order to do business, they should be well aware of their contribution towards the society as well as their business and employees in it. It is total strategy of all. We should be able to realize every increment contributes of it. One of the major factors that affect a business is how well it participates in Corporate Social Responsibility. According to (Werther & Chandler, 2006) corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefits the society. In authenticity, there is a whole lot to argue about it. There are no major guidelines that decides either a business is participating in Corporate Social Responsibility; what might be considered a Business practicing CSR to some, can still not be accepted for it by others. CSR may be restrained a term which his highly flexible. This paper will discuss about Corporate Social Responsibility and its
Corporate Social Responsibility is management’s obligation to protect and promote their stakeholders welfare. Social Responsibility is more than just obvious ethical issues like honesty and integrity in business dealings.