Corporate Social Responsiveness Case Study

Improved Essays
iii. Factors influence Corporate Social Responsiveness
In business world, managers have to deal with a range of unstable and ever-changing issues, as well as the same complex stakeholder groups that have different interests (McMahon, 1999). Davis and Blomstrom’s “Iron Law of Responsibility” mention that corporate social responsibility must commensurate with their social power (Salbu, 1993). Any avoidance of social responsibility will lead to the loss of power given by the society. Welcomer, Cochran, Rands, & Haggerty (2003) indicate that stakeholder power and corporate social responsiveness have positive relationship.

Corporate social responsibility to the implementation of the survival and development of enterprises, decision-makers must
…show more content…
Ibrahim & Angelidis (1995) examined that outside directors have a weaker orientation in economic performance which exhibit greater concern about the component of corporate responsiveness. Growing interest in the corporate social responsiveness of business, the proportion of outside board members has increased as a result.

Besides, the degree of religiousness and cultural differences have an impact on individual corporate social responsiveness orientation. Angelidis & Ibrahim (2004) mention that religiousness related to individual’s CSRO, it have a significant relationship between religiousness and social responsiveness. People with high religiousness attitude change over time which imply of the managerial value as same as religiousness can be altered.

Relationship between a firm's social responsiveness and size of business
Stanwick & Stanwick (1998) indicate that there was an inverse relationship
…show more content…
Findings

Corporate social responsiveness is better than the concept of corporate social responsibility. From previous literature review, corporate social responsiveness is a detailed analysis of the relationship between corporate social responsibility and social effective response. For the CSR, it is only classify the types of responsibility in business, it does not encourage and provide information of further responses, which most of the firms have achieve CSR, as it must be attain of legal standard. Corporate should take higher standard though CSR2.

From CSP model, it is to establish a stakeholder framework for analyzing and evaluating corporate social performance. It is a mix from CSR principles and CSR2 process and social related issues, which is a combination from different arguments in CSR concept. It can show that corporate social responsiveness is a complex issue, it involved lots of parties. Business should consider the interests.of the stakeholders to the firm and relevant .community norms carefully. From the approach of “Iron Law of Responsibility”, while corporate continuous expanse in its business, the community requires firms to take more social responsibilities. Otherwise it will lead to strong social criticism and social pressure, so that enterprises lose the power given by

Related Documents

  • Improved Essays

    In the recent years, there is a rising concern regarding social responsibility in the business world. It is merely impossible to read through articles, newspaper or business reviews without encountering discussions of the issue. Today, companies not just compete on prices, quality and competitive advantages, they must also imitate on the legal, ethical, moral and social consequences of their decision (Harris, 2001). In order for businesses to prosper within the competitive environment, organisations have to adopt Corporate Social Responsibility (CSR) to its business strategies as it plays a significant role on the growth and profitability (Keinert, 2008). Therefore this raises the question.…

    • 733 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    A firm’s action can have enormous impacts on its products, though it is in compliance regulatory laws with regards to labour conditions while at the same time violates international laws. The debate about the role and responsibility of firms in contributing to an ecologically and socially viable economy is fuelled by this complexity. In the oil and gas sector there are varieties of social groups involved in trying to shape norms about corporate responsibility, notwithstanding the end results has not been encouraging. For these groups, there are a number of inroads to influencing corporate actions. There various ways of fostering certain corporate practice, such as Legislation, pressure from environmental or social activist groups and consumer boycotts.…

    • 1004 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    The responsibilities of a corporation are creating structure and function of its own organisation, providing continuity, effective management and increase of profit, and social responsibilities. Corporate responsibility is concerned with the sustainability of an organisation’s ethics over the long term. At its core, corporate responsibility seeks to add value to an organisation's activities by ensuring they have a positive impact on society, the environment and the economy. The corporate social responsibilities (CSR) can be categorized in philanthropic, ethical, legal, economic responsibilities along with maximising its own profit using “Pyramid of Corporate Social Responsibility”. The CSR can also be categorised in people (includes CSR), planet…

    • 1050 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Corporate social responsibility has become one of the most widespread notions in the global world (Carroll and Shabana, 2009). Corporate social responsibility refers to the relations between organizations and the society in different dimensions. The aim of corporate social responsibility is to provide a method for organizations to perform their business and meet community demands, and commercial, legal, social and ethical expectations (Venous, 2005). Companies need to involve in different types of social responsibility activities, such as acts of responsibility towards the environment, treating employees fairly or contributions to art and cultural programs in the community (Barone et al., 2000). Many studies have shown that companies get benefits…

    • 945 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Neoclassical Model

    • 1656 Words
    • 7 Pages

    The change in the culture and mindset of employees, as well as the commitment of the leadership and management are some of the internal factors which drive the transformation of the neoclassical model evident within post bureaucracy (Stubbs & Cocklin, 2008). It is through this transformation which allows organizations to be sustainable, by prioritizing the management of social and environmental issues within a business. The significance of the role of managers and their prioritization of decisions are emphasized through the ideas of corporate social responsibility, as being the greater intentions of business’ in creating practices and policies that go greater beyond the idea of just generating profit (Wray-Bliss 2007). The role of managers is further supported by the evolution of management structures from a bureaucratic hierarchical structure to a flatter management alternative, more often portrayed as a clan or adhocracy culture (Schein 1990). This change of managerial characteristics include a subtle form of communication, domination and control (Simpson 2016) assisting in the transformation of the neo-classical model to the SBM, as managers act on the same level with its employees.…

    • 1656 Words
    • 7 Pages
    Improved Essays
  • Improved Essays

    Case 2 of the textbook focuses on the various problems that the Wallace Group is facing in terms of corporate governance, particularly the aspect of executive leadership. The case outlines not only the steps that the firm took to identify the matters facing its corporate governance as well as the approach that could be employed to deal with the matter. In fact, the issues touched on diversification and the need for employee morale. Synopsis of the Case Based on the information of the case, leadership is the most apparent issue that the Wallace Group is facing. Undeniably, the company has a well-structured Board of Directors.…

    • 721 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Charismatic Leadership

    • 1245 Words
    • 5 Pages

    In fact, the leaders of the organization must have a clear vision of the desired end-state of the entire system and its various dimensions like its business, organization and way of working. o In today’s environment, the multi-billion dollar financial organizations have been found losing market shares due to aggressive marketing strategy and practices of competitors, customer resistance to changing buying habits, lack of organizational capacity to respond quickly to changes in the business environment, and inconsistency in management philosophy and practices among top managers. o The first step in the process of mounting fundamental change is an adequate diagnosis which involves an analysis of the present reality including the demands of the environment and the organization’s capacity to respond to these demands and the development of a clear vision of the changed state after the change effort has taken place. In fact, the diagnostic approach is better than an action approach in managing fundamental change. • The Leadership…

    • 1245 Words
    • 5 Pages
    Great Essays
  • Decent Essays

    3.2 The Rio Tinto’s CSR Performance The famous slogan in Rio Tinto with respect to corporate social responsibility is "The Way We Work". Rio Tinto as a company has enlisted a series of activities for the society engagement.…

    • 960 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Organizational communication plays a significant role in our organization. Because the corporate contributors incorporation is various cultural, ethnic, religious, and educational backgrounds, communication among the organizational members can become tremendously complex and unproductive, which usually leads to a failure in productivity, organizational conflicts, and employee disappointment. Therefore, the time has come to improve basic communication by applying a new communication structure. Trenholm (2011) writes that “When communication succeeds, the organization is likely to be effective and efficient, and workers satisfied and dedicated. When it fails, both the group and its diverse followers suffer” (p. 202).…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Social responsibility is a thought that has been of worry to humanity for a long time. In the course of the most recent two decades, on the other hand, it has happened to expanding worry to the business world. This has brought about developing association between governments, organizations and society all in all. Before, organizations basically worried about the financial consequences of their choices. "Today, on the other hand, organizations should likewise think about the legitimate, moral, good and social results of their decisions.This paper will clarify the different advantages of csr for an association and how these advantages exceed the expense of such activities Beginning with CSR helps in a simple approach to construct organization's…

    • 1003 Words
    • 5 Pages
    Superior Essays