Economic Recession And Corporate Social Responsibility Essay

957 Words Sep 19th, 2015 4 Pages
In the article “ECONOMIC RECESSION and CORPORATE SOCIAL RESPONSIBILITY (CSR) in Singapore”, Professor Peter Shergold identifies what he believes was the main cause of the financial recession then in 2009, greed. This greed stemmed from the emphasis placed on short-term profits that started a cyclical and disastrous trend of borrowing money to support artificially inflated investment returns. Shergold believes this highlights the wrong mind-set that most executives have about business - focusing on short-term profits. It may boost the company’s financial image, but this is a polar opposite of the essence of CSR. He believes that business should eradicate this myopic concept of short term profits and align the company’s profit motive with CSR, this is a long term approach that ensures their business will prosper in the long run in a sustainable environment with healthy interactive stakeholder relationships.

Shergold argues that simply complying with government regulation on CSR is only the bare minimum. As mentioned in his article about surveys conducted from 2004-2007, the general consensus in Singapore is that CSR equates to philanthropy. Singapore has heavy government regulation when it comes to charitable bodies and many policies are in place to ensure these organisations are effective and reliable. [1] As of 2015, there is a shift in focus from larger quantities of donations to the governance of charitable bodies. [2] This indicates Singaporean donors want transparent…

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