Corporate Social Responsibility And Business Essay
This essays argues against the notion that a business’s only responsibility is to produce profits. While businesses are owned by shareholders who expect improved profits annually, this essay argues that a firm’s mandate extend beyond the business on a social context. This is what has come to be widely regarded as Corporate Social Responsibility. The ethical and goodwill viewpoints form the basis of this argument. The essay will begin by describing the concept of Corporate Social Responsibility and why it is significant for firms looking to indulge in more than profit generation. Two theoretical frameworks, namely Shareholder Theory and Stakeholder Theory will be used to analyse the subject. Finally, a conclusion summarising the analysis will be provided.
The Corporate Social Responsibility (CSR) Concept
Sims (2003) provides a working definition of CSR as “the continuing commitment by business to behaving ethically and contributing to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large” (p. 43). This definition highlights the ethical aspect of CSR as more of a mandate rather than a desire to give back to society. It also divulges the interdependence of ethical behaviour, economic development, and improvement of life when a company considers stakeholders besides shareholders. For instance, when a business provides good working conditions and better pay for its workforce…