Corporate Social Responsibility Role and Stakeholders

Introduction

It is imperative to note that the role of corporate social responsibility (CSR) is an interesting topic that has been actively discussed by scholars. Many companies have recognized that the focus on this approach is vital because of such issues as damage to the environment and others. The issue is that many think that multinational corporations do not have the responsibility to participate in CSR programs, but numerous pieces of evidence suggest that this statement is not reasonable, and such activities must be supported by organizations.

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Background

One of the most significant aspects that need to be discussed is that CSR was viewed as a questionable approach when it was first introduced, and many corporations have focused on the needs of society. Moreover, it is necessary to understand that the way this type of self-regulation was perceived has changed over the years. The literature that was written on this topic was critical because companies were provided with numerous approaches and some of them were incredibly reasonable. Also, it is paramount to note that the impact of legislation was also quite significant, and companies had to take necessary measures to ensure that their clients and workers are protected. The most attention has to be devoted to the process of decision-making and how CSR behavior can be promoted in a particular corporation (Moura-Leite & Padgett, 2011). Overall, the fact that it has become a vital part of business strategies in the 20th should not be overlooked.

Corporate Social Responsibility

CSR can be described as a particular type of self-regulation that is a part of a business model. The role of this policy is to ensure that every single operation is performed according to certain standards and norms. Also, it is important to understand that many companies are participating in other activities that would be incredibly beneficial to the population as a whole. The primary goal of this approach is to increase profits in the long-term because it helps to establish relationships with the public, and any possible risks that are associated with ethics are also significantly reduced most of the time. Another benefit of this approach that should not be disregarded is that it helps to protect the image of the corporation. The issue that many companies currently have to deal with is that the information spreads at rapid speeds because of such new technologies as the Internet and social media, and it is imperative to ensure that activities that would damage the environment are avoided.

Discussion

Arguments

It is necessary to understand that such corporations have access to enormous amounts of resources that can be utilized to promote particular changes. For instance, one of the aspects that should not be overlooked is that such enterprises operate in countries with high levels of poverty, and they may participate in activities that would increase the buying capabilities of the populations. The problem that should not be disregarded is that every single organization needs to be socially responsible at this point because the society has to deal with numerous environmental and social issues at the moment. Another factor that needs to be discussed is that CSR has become a standard approach at this point, and every single employee expects the corporation to engage in CSR programs. It is paramount to understand that modern society is evolving, and the expectations are always increasing. Furthermore, multinational corporations have both moral and social responsibility to participate in such activities because other organizations do not have access to such amounts of resources, and it should be viewed as an outstanding opportunity to promote changes.

Ethical Theory

Utilitarianism can be described as an approach that is focused on the best outcomes that are possible in particular situations. It is imperative to mention that this ethical theory is reasonable in this case because companies are obligated to act like this because of moral aspects. Also, this theory supports the idea that corporations should make sure that the interests of individuals that have no relationship to a particular enterprise are also considered. Moreover, the health and well-being of employees are also promoted. Another aspect that is worth noting is that many individuals that agree with this theory have suggested that the support that is offered to populations that are struggling is valued much more (Frederiksen, 2010). Overall, the application of this theory is appropriate in this case because it supports the idea that it is necessary to maximize the utility of every action, and CSR may be viewed as one of the best approaches to support such activities.

Globalization

One of the core aspects that need to be mentioned is that globalization has had an enormous impact on many organizations, and they had to review some of the approaches. The issue that should not be overlooked is that there have been numerous instances of corporations participating in unethical activities on the territories of countries that are less developed, and this situation should not be viewed as acceptable. The importance of CSR in such regions has been increasing because numerous problems with governance are still present, and such issues as child labor and damage to the environment are especially problematic (Hackert, Krumwiede, Tokle, & Vokurka, 2012). Multinational corporations should have an understanding of the fact that it is their responsibility to promote CSR all over the globe because some of the products that are developed in emerging economies are extremely unsafe, and such issues must be addressed.

Internal Stakeholders

The role of internal stakeholders should not be overlooked because their opinions have an enormous impact on the process of decision-making most of the time. Also, it is necessary to mention that performance levels and satisfaction with the job are also affected most of the time, and participation in socially responsible activities helps to increase loyalty (O’Riordan & Fairbrass, 2014). It is paramount to note that it may not be an easy task to manage the interests of all the stakeholders, and it is important to have an understanding of what factors must be prioritized in a particular situation. Moreover, the way CSR affects internal stakeholders is enormous most of the time because their productivity is increased. Also, they are much more likely to be loyal to the corporation because they know that they are valued by the company and are provided with a broad range of benefits.

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External Stakeholders

The way a particular enterprise is viewed by external stakeholders is a critical factor that affects most of the operations, and many companies devote significant amounts of resources to ensure that the reputation of the company is not affected. Another core aspect that should not be overlooked is that many external stakeholders are willing to support only the businesses that are socially responsible (Glac, 2014). Also, it is imperative to understand that the company may use external stakeholders to spread the information about some of the activities. It is important to note that this approach helps to increase the reputation of a particular organization, and it is incredibly important for modern businesses.

Moreover, it is important to note that sustainability and social responsibility are highly valued by many customers, and it may become a part of the brand. It is necessary to understand that it may be viewed as a particular type of promotion because many clients are looking for information about such activities and are willing to build long-term relationships with companies that devote significant amounts of resources to CSR. Overall, the impact of this approach on external stakeholders is enormous most of the time because they are much more likely to support a company that participates in socially responsible activities, and it has many other benefits that should not be disregarded.

Conclusion

In conclusion, it is evident that participation in CSR programs is necessary from the perspective of morality and social responsibility. Every single multinational organization should have an understanding of the fact that such activities are economically justified and be incredibly beneficial in the long-term (Carroll & Shabana, 2010). The experience of some of the companies that have focused on sustainability can be taken as an example, and most of them are incredibly profitable because this approach can be used to develop relationships with other companies and this is an aspect that is valued by many customers. It is understandable that numerous issues are still present, but it is entirely possible that such problems will be addressed in the future because many multinational corporations have started to focus on CSR.

References

Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105.

Frederiksen, C. S. (2010). The relation between policies concerning corporate social responsibility (CSR) and philosophical moral theories – An empirical Investigation. Journal of Business Ethics, 93(3), 357-371.

Glac, K. (2014). The influence of shareholders on corporate social responsibility. Economics, Management and Financial Markets, 9(3), 34-72.

Hackert, A. M., Krumwiede, D., Tokle, J., & Vokurka, R. J. (2012). Global corporate social responsibility practices and cultural dimensions. S.A.M. Advanced Management Journal, 77(4), 33-41.

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Moura-Leite, L. C., & Padgett, R. C. (2011). Historical background of corporate social responsibility. Social Responsibility Journal, 7(4), 528-539.

O’Riordan, L., & Fairbrass, J. (2014). Managing CSR stakeholder engagement: A new conceptual framework. Journal of Business Ethics, 125(1), 121-145.

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