The Importance Of Corporate Social Responsibility

1193 Words3 Pages
bulb-icon

Recommended: Corporate social responsibility is quizlet

Introduction
Corporate Social Responsibility encompasses more than just clear ethical issues such as honesty and integrity. Corporate Social Responsibility can be defined as management’s responsibility to protect and promote the wellbeing of all stakeholders financially or otherwise. According to Corporate Social Responsibility the financial performance is not the only thing important in the business but Social performance of the business is equally important to external stakeholders such as customers, suppliers, government and society in general.
According to the King Report on Corporate Governance it is stated that there should be a shift away from Bottom Line Reporting profit being the only focus point to Triple Bottom Line Reporting which includes the economic (Profit), environmental (Planet) and social aspects (people) of the organisations activities.

The organisations Primary Social Responsibility is towards the business itself, its owners, employees, suppliers, consumers and competitors, while the broader social responsibility includes activities aimed at the country as a whole as well the local community.
The owners
- The owners of the business have contributed capital towards the business venture and therefore have a direct interest in the financial performance of the business as this will impact on the value of their investments

Employees
- Employees of the business at all levels have an interest in the financial performance as this will impact on their remenuration.

Suppliers
- Suppliers may supply raw materials, capital goods, or even financial resources. They expect payment from the business promptly and this may be in conflict with the business’s interest of delaying payment to create a better cash flow and ther...

... middle of paper ...

... as it does not just end at the supplier gaining their money but goes back to help other farmers and Pick n’ Pay ensures their products are sold on their shelves. Article 2 is also sustainable as this focuses more on BEE suppliers and giving them all the necessary aid it needs as well as further assistance to ensure they are still operating in the long term.

MY OPINION

I personally think the Pick ‘n Pay CSR and corporate governance is a good one because not only is it the first company to make a commitment to South Africa’s CSR initiates but also because they don’t only provide financial assistance and leave using the “hit and run” method but they also offer knowledge and proper insight information of what is required from them and what they should expect. It is also sustainable as in Article one a percentage of the income goes back to the farming communities.

Show More
Related

  • Corporate Social Responsibility Analysis Of Tom's Company

    1027 Words  | 3 Pages

    Corporate social responsibilities (CSR) have a different meaning in different company but in my view CSR is the concept which is the ability one of the companies can do for society. As the company responsibilities toward the society and environment in the way operate their business. CSR is about how companies manage the business processes to produce an overall positive impact on society. CSR also known as a “corporate citizenship” and with do that CSR is not provide an immediate financial benefit to the company but promote positive social and environmental change. (www.investopedia.com/terms/c/corp-social-responsibility). CSR is a high profile nation which the business world perceives as a strategic (Economist, 2008; Porter & Kramer, 2006)

    Read More

  • The Importance Of Corporate Social Responsibility

    2501 Words  | 6 Pages

    Corporate Social Responsibility, some may say it is an organization's duty to behave in an economically and environmentally acceptable manner but there is more to it that just that. A company has a duty to its shareholders, the duty to maximize benefits and avoid trouble, a responsibility to the employees and others who depend on that company for a living , and last but not least they have the duty to create a safe environment for everyone. A Civil Action by Jonathan Harr depicts a civil lawsuit that takes place in the United States. The lawsuit is filed by residents of a small town, Woburn, in Massachusetts, against two powerful corporations, Beatrice Foods and W.R. Grace, for polluting the water in the local river with carcinogen TCE and causing the deaths of many children. A Civil Action by Jonathan Harr demonstrates that the issue of Social Corporate Responsibility is prevalent throughout the piece but because of the adversary system of law there is no place for apology just winning for both parties.

    Read More

  • Business Ethics Issues in the Movie Boiler Room

    1086 Words  | 3 Pages

    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).

    Read More

  • Bernie Madoff Accomplices

    889 Words  | 2 Pages

    Social responsibility is the ethical framework which suggest that an entity, be it an organization or individual, has an obligation to act for the benefit of society at large. According to investopedia.com, social responsibility is developing a business with a positive relationship to the society they operate in. (Investopedia, 2003) “ For companies, the overall aim is to achieve a positive impact on society as a whole while maximizing the creation of shared value for the owners of the business, its employees, shareholders and stakeholders.” (Tennant, 2015)

    Read More

  • The Effects of Corporate Social Responsibility on International Business

    1540 Words  | 4 Pages

    Corporate Social Responsibility (CSR) is the set of regulations that an organization makes to protect and increase the society in which it functions. There are three areas of social responsiblity: Organizational stakeholders, the natural environment and general social welfare.

    Read More

  • Corporate Social Responsibility

    1700 Words  | 4 Pages

    There is a link between corporate social responsibility and the key principles of the stakeholders, which a company should follow to be responsible to its stakeholders. The first stakeholder is environment and the key principle used for it is not damage the environment for example, recycling, dealing correctly with their wastes and emissions. The second stakeholder is the employees. The key principle for the employees is companies providing safe and health working conditions for their staff. Moreover, the employees earn an appropriate salary for ...

    Read More

  • General Electric's Corporate Social Responsability

    1774 Words  | 4 Pages

    According to Mike Peng, Corporate Social Responsibility (CSR) is the consideration and response to issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with traditional economic gains the firm seeks. CSR is a way in which a company seeks to achieve a balance between profit, environmental concerns and social imperatives. This is known as the ‘Triple-Botto...

    Read More

  • Corporate Social Responsibility Case Study

    1301 Words  | 3 Pages

    Corporate social responsibility (CSR) is similar to an individual’s social responsibility. An individual who is socially responsible is aware of how their decisions affect the environment. Corporate social responsibility can be define as “how well a company meets its economic, legal, ethical, and discretionary responsibilities” (Peter & Sarah, p. 51). Corporate social responsibility holds businesses accountable to stakeholders such as consumers, in areas of concern such as environmental factors, community and society in general. As a result successful CSR initiatives creates a sustainable company in all ways: financially, ethically, environmentally, and socially. The moral problem with CSR is based on the belief that “CSR would be a cost that would be higher than the perceived benefits. By financially supporting “charity” based initiatives, firms are not performing their fiduciary duty to their stockholders” (Peter & Sarah, p. 49).

    Read More

  • The Pros And Cons Of Social Responsibility

    1178 Words  | 3 Pages

    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

    Read More

  • Article Review: The Importance Of Corporate Social Responsibility

    1093 Words  | 3 Pages

    A corporations CSR should be shaped in order to fit the goals of the corporation, although every corporation’s CSR should differ, since most have different goals and different communities behind them. The CSR should be molded into fitting the corporation’s goals in order to make it easier on the corporation in giving back to the community while achieving its goals. For example, a corporation located in a desert wishes to be more efficient, by reducing water usage it is not only creating lower costs, which result in higher revenue, but also helps the community by not taking up so much water. Taking this into consideration, it is critical that the corporation goals and values are established and clear throughout the corporation, they should be developed by the board or directors and CEO, and the highest managerial level should stress their importance to the rest of the corporation. By making the goals and values at the top branch of the corporate hierarchy, it will be simpler for the corporates community to develop in order to nurture those goals and values. Therefore, a corporation can reach the “shared-value,” a value for both its shareholders and community in a simpler manner that can result benefiting the corporation in the end as well. Throughout the article many examples are given of actual corporations that have benefited and changed their CSR in order to fit their goals, therefore, providing solid proof that these methods work. Nevertheless, as acknowledged by the author’s themselves, most of the corporations taken into consideration where one’s that Harvard CSR students were employed

    Read More

  • Pick n Pay Social Responsibility

    1343 Words  | 3 Pages

    Employees at every level have an interest in how the business is performing financially, as it impacts their remuneration.

    Read More

  • Views on Corporate Social Responsibility

    1003 Words  | 3 Pages

    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.

    Read More

  • Importance Of Corporate Social Responsibility

    1000 Words  | 2 Pages

    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

    Read More

  • Essay On Corporate Social Responsibility

    1275 Words  | 3 Pages

    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.

    Read More

  • Traditional and Contemporary Performance Measurement

    1212 Words  | 3 Pages

    In the past, the company performance was measured by asking ‘how much money the company makes?’ To a certain extent, they are right because gross revenue, profitability, return on capital, etc. are the results that companies must bring to survive. Unfortunately, in today business if the management focuses only on the financial health of the company, numerous unwanted consequences may arise.

    Read More

More about The Importance Of Corporate Social Responsibility

Open Document