Corporate Social Responsibility

Corporate Social Responsibility

Introduction

Everything we do has some impact on those around us and with whom we interact. Just like individuals, institutions are also inserted a medium in which exercise a number of different impacts, and in turn are impacted. Every business, like it or not, is part of the community (or communities) in which it is established and operates (Ackerman, 2000).

The main impact of a company in society, and principal value it creates, are the products and services it offers to consumers. That is its reason to exist, and if she has managed to sell these products for more than it spends to produce them, then it is the public that the consumer himself is endorsing and affirming its existence.

For this, however, it depends on a wide range of relationships: with suppliers, employees, customers, and the particular context in which it falls, that is the physical space of its buildings, the communities in which it operates and whose local resources (electricity, water, sewage, transportation, restaurants, etc..) she uses her neighbours, the natural environment around them etc.

Discussion

The role of corporate social responsibility is immense in the case of non profit entities. Maybe an exclusive focus on generating short-term profits, perhaps managerial theories in vogue in recent decades, these relationships with the world around company had been lost sight of by many managers and entrepreneurs, which eventually led to an erosion of the relationship between business and society. The implication was such that for many, business and society are two antagonistic entities: to the extent that the firm maximizes its value for shareholders, society loses. Therefore concludes that the party point of view, several policy measures are needed to contain some corporate profit and thus protect social and environmental causes. The role of society, mainly by government, with respect to companies, would be to curb his predatory profit (Asmus, 2005).

Significance of Corporate Social Responsibility

The concern with corporate social responsibility called born this context the apparent conflict between business and society. Companies, on its own initiative, “give back” to society a little of what, with the support of that company, managed to accumulate. And then we have in mind mainly initiatives and projects that the company develops and have no intrinsic relation to the production process: the most common example is the donation of money to an NGO. There are merits in these initiatives, but they can hardly satisfy both sides: for those who are in business, social responsibility is a source of costs, for those who are outside, it can sometimes seem like an attempt at social (or environmental) which make up the company would try to appear what he is not (Carroll, 2009).

Shared Value

Recently, however, the issue of corporate social responsibility has been worked in a different perspective: that of creating shared value. Business and society are not treated as enemies but as partners mutually benefit and that depend on each other.

The name “creating shared value”, which has been used in recent publications of ...