Critique of the Concept of Corporate Social Responsibility
Today, corporate social responsibility (CSR) is considered as part of business strategy, there are many debates and reports about the nature and value or business opportunities that can be achieved when implementing corporate social responsibility. Also as CSR can be "a source of opportunity, innovation, and competitive advantage" rather than just "a cost, a constraint, or charitable deed". Along with the comprehensive the renovation of the country, the success in accelerating economic growth rate are posing the country for many social and environmental problems the urgent.
Corporate social responsibility may also be referred to as "corporate citizenship" and can involve spending finances that do not directly benefit the company but rather advocate positive social and environmental change.In the past, companies mistakenly thought that corporate social responsibility was corporate philanthropy but because of forums like the soul of the next economy, awareness about the real meaning of corporate social responsibility is increasing substantially. Corporate philanthropy is done with no expectation of financial gain but can lead to other gain by engaging employees and more recognition. Jorina Fontelera from Demand Media defines corporate social responsibility by comparing it to corporate philanthropy. Demand media describes corporate social responsibility as corporate philanthropy but addressing issues that affect “the environment, consumers, human rights, supply-chain sustainability and transparency for the greater good of the world at large”.
Corporate social responsibility ensures that corporations the world over are engaged in other activities that give back to the community (Crowther and Rayman-Bacchu 172). Many activities that are considered helpful include: organizing activities that seek to involve the community in such events as fund raising for the needy, events that seek to help out the disadvantage in society and other similar activities. In the financial and corporate world, corporate social responsibility is given with a positive impact on performance. There are, however, several factors that show the need for corporate social responsibility. The first factor is population. The expanding population in developing regions will create larger markets dominated by younger individuals with questionable access to the developed world’s standard of living. Statistics show that more than eighty five percent of the world’s population will live in developing countries by 2025 (Crowther and Rayman-Bacchu 165).
In summary, the actions of multinational companies in a host country can cause significant loss of reputation in the developed world, where the general public have become more sensitive to environmental issues and social impact. The public have the power to boycott the goods and products of multinational corporations in cases of unethical behaviour where organisations are thought not to fulfil their social and environmental obligations. However, international reputation side effects are not the only reason behind the potential increased level of social and environmental responsibilities faced by multinational companies; there are many drivers for the correct implementation of CSR by business entities. However, for many companies, corporate reputation and brand image are the fundamental components of business success.
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Crowther, David and Rayman-Bacchus, Lez. Perspectives on Corporate Social Responsibility. Burlington: Ashgate Publishing, 2004. Print.
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