Question

Discuss the differing views of the role ob business on the continuum for corporate social responsibility. Describe the components of corporate social responsibility. Discuss why organizations would want to achieve this level of practice.

Answer 1

Corporate Social Responsibility or CSR refers to a type of self-regulation business model that helps a business organization in holding itself socially accountable, not just to its employees, stakeholders, customers but also to the general public. It means that the company tries to reduce its negative impact on the social, economic and environmental aspects of society.

for eg. Many times, companies take initiatives to curb their carbon footprints which can be classified as its environmental social responsibility. Or sometimes, a company fights for rights for women or underprivileged children which can be classified into its responsibility towards social issues.

The four main components of CSR are:

• Economic Social Responsibility refers to the ability of a business to be profitable to its stakeholders and employees before it can give back to society.
• Legal Social Responsibility refers to the duties of a company to abide by the laws of the country it operates in and to have business relationships with suppliers who abide by the law as well.
• Ethical Social Responsibility refers to a business being responsible for providing with proper wages to its laborers and to abide by the labor laws.
• Discretionary Social Responsiilty refers to the company's contribution to society without any expectations in return. this can be in the form of volunteer work, supporting charities and giving donations.

Different views regarding CSR

A company having a CSR model always enjoys the trust of its stakeholders, employees, customers as well as the general public. Moreover, it also earns goodwill and a reputation of being a socially responsible company which goes a long way in earning and attracting customers as well as recognition. Moreover, it also puts the spotlight on various issues plaguing the society when a high profile company takes up the cause to fight for it.

While most favour a company following CSR, there are also many opponents to this model. the main argument of the opponents is that a business organization is created to earn profits and provide high-quality goods and services. It should leave other matters in the hands of the government and various NGOs working to fight the social issues.

Why CSR is good?

Companies should adopt CSR as it has many benefits for the organization in the long run. It will create a better brand and recognition for the organization to be socially responsible. Also, positive business reputation leads to customer loyalty which ultimately converts into increased sales. Therefore, following CSR is overall beneficial to the company and it can reap the benefits of its good work done for the betterment of the society in the form of a successful business.