This essay is going to take a close look at the topic of corporate social responsibility with rich references. In this essay it will firstly give the definition of corporate social responsibility helping readers to have a good understanding of the concept. Following this it will consider the different stake holder perspectives. Subsequently, it will discuss the positive and negative Arguments for CSR. Then this essay will come to the issues on the ethical organizational behaviors. Finally it will outline some examples that do well in corporate social responsibility including the Procter & Gamble and Coca-Cola.
2.0 Definition of Corporate Social Responsibility (CSR)
At present there is no uniform definition of corporate social responsibility and most countries or organizations use their own dentitions. This essay will select two official definitions on this concept. According to WBSCSD (2002), corporate social responsibility is the business’s continuing commitment to improve the development of economic while at the same time the business will improve the life quality of the workforce, their families and the local community and society. European Commission (2011) defines this concept as follow. Corporate social responsibility is the responsibility of firms on the society for their great impacts. To fulfill the responsibility firms need to adopt the environmental, ethical human rights, integrate social concern to the core strategy and business operations with the stakeholders. At present corporate social responsibility is the combination of WBSCSD and European Commission in business. This essay adopts the combination one.
3.0 Different Stakeholder Perspectives
Different stake holders hold different perspectives on the issues that whether firms should take the corporate social responsibility or not. Some stake holders think that the firms should fulfill the corporate social responsibility for the following reasons. Firstly, firms as a social member who gain profit from the society should return to the society by various ways. Those stake holders believe that shareholders’ equity cannot go farther without the support of the society. Thus, the firms should undertake the social responsibility partly. The secondly one is the most important one that corporate social responsibility can be another way of marketing which can receive good brand image and then increase the sales of the firms’ products. This has aroused more and more attention in business now. Those stakeholders believe that undertaking the corporate social responsibility is a form of investment which will create profit in the long term (Kabir, 2011).
However, there are some stake holders holding the views that undertaking the corporate social responsibility is damaging the interest of the stakeholders especially for those who hold small parts of the firms. Even though the investment of corporate social responsibility may bring interest for the firms, the risks and the opportunity cost is also large. Although different ideas on the corporate social responsibility from the stakeholders, the main view is the former one because more and more firms realize the strategic value of CSR translating the tangible actions to intangible value and profit (WBCSD2010).
4.0 Positive and Negative Arguments of CSR
The essay above discusses the different perspectives of stakeholders on the issue of corporate social responsibility which outlines some positive and negative arguments for corporate social responsibility. In this part it will discuss the positive and genitive arguments in detail. Firstly it will discuss the positive arguments for CSR. WBCSD (2010) holds a positive argument that CSR has been moved into the mainstream of business from the fringe and more leading firms has put the CSR into the strategy. That is to say CSR is flourishing. Take Chinese as an example. In the past Chinese firms has ignored this part. But now with the development of economic and the development of marketing, many Chinese Firms have done well in this part by donating RMB to charity. The second positive argument for CSR is that the increasing attention on CSR can lead the phenomenon that more and more firms will join this field. As stated by Kong (2012), the mounting attention on the CSR related events can influence the attention of investors and customers which will push firms to improve the field of CSR. The third one is that more and more small firms have contributed efforts on CSR. Stated by Front and Garay (2012), in the past scholars paid attention the CSR of big firms while now the CSR of small firms has aroused attention as well because the good development of small firms.