BUSINESS MANAGEMENT

Business Management

Business Management

Corporate Social Responsibility

This paper focuses on the Corporate Social Responsibility at Nike. Corporate social responsibility (CSR) is a broad concept thus; there is a lack of consensuses on the definition of CSR. According to the definition of The European Commission, CSR is seen as “a concept whereby companies decide to contribute to a better society and a cleaner environment voluntary”. Among many, a frequently referenced definition from academic literature is that “the firm's considerations and responses to issue ahead of the thin technical, legal and economic requirements of the firm to achieve social as well as environmental benefits, along with the conventional economic benefits which the firm look for”. While there are numerous definitions of CSR, the common concepts among definitions are voluntary activities of firms that benefit society and the interaction between firms and their external stakeholders (Carroll, 2006).

Corporate social responsibility (CSR) can be characterized as the "economic, lawful, ethical, and discretionary anticipations that society has of associations at a granted issue in time". The notion of corporate social responsibility entails that associations have lesson, ethical, and philanthropic responsibilities in supplement to their responsibilities to profit from an equitable come back for investors and obey with the law (Carroll, 1999).

Corporate social responsibility is associated to, but not equal with, enterprise ethics. While CSR embraces the financial, lawful, ethical, and discretionary responsibilities of associations, enterprise ethics generally focuses on the lesson judgments and demeanor of persons and assemblies inside organizations. Thus, the study of enterprise ethics may be considered as a constituent of the bigger study of corporate social responsibility.

Components of CSR

The four components of CSR are discussed below:

Economic Responsibilities

The first step towards social responsibility is basically the fulfillment of economic responsibility. Businesses, being economic units of society have the responsibility of producing according to the needs of the society keeping their preferences in high regard. Profit maximization should no longer be the only objective of any company. It has to respond to social demands and needs, as well.

Legal Responsibilities

A good corporate standing means the fulfillment of all legal requirements. Every company should be in strong coherence with the principles set forth by the legal framework of the nation and a firm should believe that government and local authorities are an important influence towards the betterment of any organization. It also prevents the supply of defective goods in the name of the company and avoid legal sanctions top the maximum.

Ethical Responsibilities

A company must respect the rights of individuals who are directly or indirectly associated with the company, and it should act with impartiality towards all its stakeholders. If a company develops well defined objectives for its social code of conduct and moral obligations, it can prosper well on the roads of success. Corporate social responsibility drives the society towards change, links the companies of the business sector with the general public and in turn establishes a framework that creates mutual understanding and cooperation towards achieving national goals. This should be the foremost responsibility of all organizations ...