Corporate Social Responsibility and Conscious Capitalism mainly differ in their purpose for existence and stakeholder perception. Kotler and Lee (2004) define Corporate Social Responsibility (CSR) as a “company’s commitment to improving the well-being of a community through business practices deemed discretionary and contributions through corporate resources”. Business initiatives account for financial, social and environmental impacts it may have, but maximizing profits for shareholders takes precedence. Public relations and marketing strategy both play a critical role to improve the image of a company as an add-on policy. Conscious capitalism holds a purpose before profit approach driving business processes. Generating value comes naturally
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As Chamber of Commerce members, they sponsor local schools, food drives, and the local fire department. The company Seth Norris works for participates in the United Way and announces the program every year. Donations are solicited, and matching funds are provided. His company also provides incentives to employees such as extra vacation days or a chance to win a cash prize. Knowing that his company matches their contribution is the main incentive. Purpose and meaning are higher achievements than profits. Community involvement is a part of that higher calling that affects long-term success. Profits are best achieved when companies do not aim directly at them. Kelli Jones works for a local hospital providing community outreach through health screenings and health education as a free service to the public. The company John Sims works for has recently co-sponsored with PepsiCo joining Enactus, a global non-profit and community of student, academic and business leaders committed to using the power of entrepreneurial action for others creating a better world for us all. Competition encourages creativity and rewards results to transform lives and shape a better more sustainable world (Enactus, …show more content…
People today think of businesses as the source of societal problems, but in reality, has helped solve many problems. The great majority of companies are involved in doing pretty exciting work where people are having vital, exciting careers, earning a livelihood for their families and making a difference for their communities (Mackey and Sisodia, 2013). Maslow's hierarchy of needs is at work here. Profit-making is a lower need. People satisfy their need for food, shelter, physical comfort, safety, and security through their income. The final step is "self-actualization," after they have achieved higher social and emotional needs. This includes the desire to help others through giving. As we have previously addressed, companies do not need to give back to society because they have already caused improvement through value they created. Stakeholders are satisfied because of the profits that will allow them to meet their needs and wants. The additional effort to help the community is not necessary but it will allow people to feel more satisfied. Mackey and Sisodia have explained It is part of that intrinsic motivation that can make work more pleasant, and more profitable
As Chamber of Commerce members, they sponsor local schools, food drives, and the local fire department. The company Seth Norris works for participates in the United Way and announces the program every year. Donations are solicited, and matching funds are provided. His company also provides incentives to employees such as extra vacation days or a chance to win a cash prize. Knowing that his company matches their contribution is the main incentive. Purpose and meaning are higher achievements than profits. Community involvement is a part of that higher calling that affects long-term success. Profits are best achieved when companies do not aim directly at them. Kelli Jones works for a local hospital providing community outreach through health screenings and health education as a free service to the public. The company John Sims works for has recently co-sponsored with PepsiCo joining Enactus, a global non-profit and community of student, academic and business leaders committed to using the power of entrepreneurial action for others creating a better world for us all. Competition encourages creativity and rewards results to transform lives and shape a better more sustainable world (Enactus, …show more content…
People today think of businesses as the source of societal problems, but in reality, has helped solve many problems. The great majority of companies are involved in doing pretty exciting work where people are having vital, exciting careers, earning a livelihood for their families and making a difference for their communities (Mackey and Sisodia, 2013). Maslow's hierarchy of needs is at work here. Profit-making is a lower need. People satisfy their need for food, shelter, physical comfort, safety, and security through their income. The final step is "self-actualization," after they have achieved higher social and emotional needs. This includes the desire to help others through giving. As we have previously addressed, companies do not need to give back to society because they have already caused improvement through value they created. Stakeholders are satisfied because of the profits that will allow them to meet their needs and wants. The additional effort to help the community is not necessary but it will allow people to feel more satisfied. Mackey and Sisodia have explained It is part of that intrinsic motivation that can make work more pleasant, and more profitable