Corporate Social Responsibility

Corporate social responsibility is a voluntary act by businesses or corporations to commit towards involving the corporate practices in social, economic and environmental aspects. In other words; it is the effort of a company to improve the society. Freeman argues that CSR should be abandoned because it is not beneficial, however, we should as well look at positively; CSR enables community participation through company involvement, this has been one way to appreciate the community. A company should understand the issues and context in which it operates, so as to aid in making the right choices in consideration of the environment and the community surrounding the business. CSR also enables the company to always strive to do better through involving the community; this is leadership that is showcased by the company. A company should also establish systems and structures that enhance the level of management. It also communicates activities that are aimed at bringing value to the community (Freeman & Liedtke 1991)

In an attempt to involve the community through corporate social responsibility, a company is deemed to participate in ending world’s problems. However, for nonprofit organizations, CSR is not aimed at making the organization look better or earning more reputation and gaining more customers, it is about voluntary practice that should take place. For a profit making company, it has to participate in the CSR with the aim of maintaining its company reputation at the same time attracting more customers and hence making profits. Shareholders in a company play the role of endorsing the activities that the company should participate; these activities should be beneficial, therefore a company will continue with profit making activity in the name of involving community so as to make profits for the shareholders. It is the responsibility of a company to end world problems through finding solutions by meeting the demand for certain product or service, however, It is also it responsibility to make profits enough to benefit the shareholders (McWilliams, 2014).

Reference

Freeman, R.E. & J. Liedtke (1991) Corporate Social Responsibility: A Critical Approach. Business Horizons. Jul/Aug91, Vol. 34 Issue 4, 

McWilliams, A. (2014). Economics of Corporate Social Responsibility . Edward Elgar Publishing.