INTRODUCTIONCorporate Social Responsibility (CSR) which can also be sustainable responsibility business/responsible busine...
The next important argument against corporate social responsibility is competence. Friedmanquestioned that ‘if businesses ...
With the Obstructionist approach, managers choose not to behave in a socially responsible way.They use this approach when ...
Managers must therefore adopt the right tactics (approach) in their CSR so as to make the bestresult of resources availabl...
Appendix:The benefits of Corporate Social ResponsibilityCorporate social responsibility (CSR) is not just about doing the ...
References;Baker, M (2011), corporate social responsibility consultant.Okoli E. (2011), Corporate social responsibility as...
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Overview of corporate social responsibility final work

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Overview of corporate social responsibility final work

  1. 1. INTRODUCTIONCorporate Social Responsibility (CSR) which can also be sustainable responsibility business/responsible business policy functions as a built – in, self regulatory mechanism whereby abusiness monitors and ensures that activities are complied with, in the spirit of the laws, ethicalstandards, and international norms. The goal of CSR is to embrace responsibility for thecompany’s actions and encourage a positive impact through its activities on the environment,consumer’s employees, communities, and all other members of the public who may also beconsidered as stake holders.The manager that deviates from the principles guiding CSR is likely to have his/her businesscollapse within the shortest possible time without achieving its main aim and objectives.Although CSR is meant to help the needs of the citizenry, a country is always obliged to comeout with some by-laws, which will be in the interest of the company and society.Overview Of Corporate Social Responsibility (CSR)In today’s world of business, CSR is increasingly important to consider as it helps organizationsmanage their business processes to impact overall impact society. Businesses are nowencouraged to consider and, indeed, intentionally manage the wider social and environmentalconsequences of their actions beyond the requirement of the legal and regulatory settings inwhich they operate.The call for organizations to be responsible to their stakeholders and communities within whomthey operate has varied interpretations. While some see it as a call in the right direction, othersthink otherwise. For instance, Milton Friedman, a Noble Prize Winning Economist, argues thatthe business of business is business. According to Friedman, any deviation from the task ofmaximizing shareholders wealth is unfair. To Friedman, there is one and only one socialresponsibility of a business, which is to use its resources and engage businesses in activitiesdesigned to increase profits, while staying within the rules of the game.The second important argument against corporate social responsibility is the competitivedisadvantage. This argument suggests that because social action will have a price for the firm, itwill also entail a competitive disadvantage. So either such works should be carried out bygovernment or at least legislated, all corporations or industries will be subjected to the samerequirement. 1
  2. 2. The next important argument against corporate social responsibility is competence. Friedmanquestioned that ‘if businesses have social responsibility other than making maximum profits forstockholders, how would they know what it is’? This argument further states that corporations donot have the technical competence to deal with social issues. Also corporations do not knowwhat is good for society and that government knows better.Every organization regardless of size must meet the social needs of all stakeholders. Businessmanagers have social responsibility in the following areas,First are economic responsibilities. The responsibility of a business manager in this regard is toproduce goods and services that society wants and maximize profits for its owners andshareholders. Organizations must become socially responsible through the provision of jobs andthe payment of taxes (Pearce and Robinson, 2009).Secondly, there is legal responsibility that all societies have laid down rules, laws and regulationsthat businesses are expected to follow. Legal responsibility defines what society deems asimportant with respect to appropriate corporate behavior. Businesses are expected to fulfill theireconomic goals within the legal framework (Bartol and Martin, 1998).Thirdly, ethical responsibilities: It includes behaviors and activities that are expected ofbusinesses by a society‘s members. These behaviors are not necessarily codified into laws andmay not serve the organization in terms of direct economic interest. According to Pearce andRobinson (2009), firms are expected but not required to behave ethically. Being ethical meansgoing beyond the minimum legal requirement.Fourthly, discretionary responsibilities: which include voluntary beneficial activities that are notstrongly expected of businesses by society members. It is purely voluntary and guided by anorganizations desire to make social contributions not mandated by economic, laws and ethics tosociety. For example, Airtel Ghana built and furnished a classroom block for a school in KroboOdumase in the Eastern Region. UT bank also adopted a ward at 37 military hospital where theyare committed to its maintenance.Approaches of Corporate Social ResponsibilityBasically there are four approaches used in Corporate Social Responsibility. These are theObstructionist, Defensive, Accommodative and Proactive approaches. 2
  3. 3. With the Obstructionist approach, managers choose not to behave in a socially responsible way.They use this approach when they sought to prevent knowledge of their behavior from reachingother organizational stakeholders and society at large.In the Defensive approach companies and their managers limit themselves to the requirements ofthe law and therefore do not go the extra mile to support the society in which they operate inother means.The Accommodative approach is practiced when companies and their managers behave legallyand try to balance the interests of the different stakeholder as the need arises. Managers with thisapproach make choices that are reasonable in the eyes of society and want to do the right thingwhen approached.The forth approach which is the Proactive approach makes managers go out of their way to learnabout the needs of different stakeholder groups and making good use of organizational resourcesto promote the interests of all stakeholders.CONCLUSIONCorporate Social Responsibility (CSR) plays an integral part in the success story of everyorganization because not only does it earn a good reputation for the organization but contributesto improving the living standards of people in the community in which it operates and society atlarge.Organizations and their managers must see this task as an underlined obligation they have tofulfill because it is their way of giving back to society. Society also contributes to the successstory of organizations through labor force and providing a conducive environment forbusinesses to thrive.Based on these constructs, it is imperative to point out that both society and organizations areinterdependent in their quest for development and success. 3
  4. 4. Managers must therefore adopt the right tactics (approach) in their CSR so as to make the bestresult of resources available to them. A successful manager needs to be dynamic and quick toanalyze a competitors’ CSR policy. This must however, fall in line with the organization’smission statement. The accommodative and proactive approaches are also quite ideal fortoday’s business world.RECOMMENDATIONOne can say without fear that many organizations in Ghana are socially irresponsible. Theytend to close their eyes on the plights of society, even those plights that resulted from actionsand inactions of some organizations.In order to curtail such societal neglect, we recommend that: Existing legislations in the country must be enforced without fear or favor. State machinery such as The Environmental Society Agency (EPA) must be well equipped to ensure that organizations do not neglect their social responsibility. Governments must all look for the nation’s interest in enforcing news without precedence to politics. New legislations must be enacted to ensure greening environment to avoid the high level of pollution of our environment leading to global warning, which is irreversible. Before an organization is granted the green light to operate its main statement must clearly spell out its CSR policy. In as much as the onus lies on organizations to be socially responsible, society also has the duty of ensuring a conducive environment for organizations to survive. Vandalizing an organization’s property for failure to fulfill its CSR must be avoided but instead the appropriate authority should be used to seat for a redress. We also recommend that managers in their drive to satisfy the needs of society must be cautious not to over spend and make the organization’s mission statement as a reference when embarking on Corporate Social Responsibility. 4
  5. 5. Appendix:The benefits of Corporate Social ResponsibilityCorporate social responsibility (CSR) is not just about doing the right thing. It means behavingresponsibly, and also dealing with suppliers who do the same. It also offers direct businessbenefits.Building a reputation as a responsible business sets you apart. Companies often favor supplierswho demonstrate responsible policies, as this can have a positive impact on how they areperceived.Some customers do not just prefer to deal with responsible companies, but insist on it. The Co-operative Group, for instance, places a strong emphasis on its corporate social responsibility andpublishes detailed warts and all reports on its performance on a wide range of criteria - fromanimal welfare to salt levels in its pizzas.Other benefits of CSR: A good reputation makes it easier to recruit employees. Employees may stay longer, reducing the costs and disruption of recruitment and retraining. Employees are better motivated and more productive. CSR helps ensure you comply with regulatory requirements. Activities such as involvement with the local community are ideal opportunities to generate positive press coverage. Good relationships with local authorities make doing business easier. Understanding the wider impact of your business can help you develop new products and services. CSR can make an organization more competitive and reduces the risk of sudden damage to your reputation (and sales). Investors recognize this and are more willing to finance the organization. 5
  6. 6. References;Baker, M (2011), corporate social responsibility consultant.Okoli E. (2011), Corporate social responsibility as a business strategy, Guinness Ghana Breweries Limited.Smith N. C. (1990), Argument for and against corporate social responsibility, except from morality and the market, New York, Routledge.Pearce J. A. and Robinson R. B. (2009), Formulation, Implementation and control of competitive strategy (10th edition), McGraw-Hill/Irwin, New York.Bartol K.M and Martin D.C (1998), Management, (3rd edition), Irwin McGraw-Hill. 6

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