Corporate social responsibility is a wide concept whose definition varies depending on the company type. For most industries, corporate social responsibility is a concept understood as a business approach which leads to a sustainable development through delivery of environmental, social and economic advantages to the industry, company and its stakeholders (Schwartz, 2017). Depending on the country and the type of company, CSR is a wide concept which may cover human rights, health, and safety, corporate governance, as well as working conditions in a company. For an industry to be considered socially responsible, it has to prove that it is responsible to its stakeholders and to itself. Sometimes companies may grow to a point where they want to give back to the community. CSR is a concept which is often adopted by large companies.
Corporate Social Irresponsibility, on the other hand, can be defined as the failure of corporations to act responsibly (Stachowicz-Stanusch & Amann, 2017). CSI is often known if the company does not honor agreements it makes with its stakeholders. Sometimes the company fails to be responsible for its workers and do not show any concerns for the concepts of Human Rights, working conditions, or even health conditions for its workers.
Delegate your assignment to our experts and they will do the rest.
With regards to CSR and CSI, this paper argues that corporations should adopt Corporate Social Responsibility and should not avoid any stakeholder for them to add to the short-term bottom line. Whereas one can argue that CSI helps a corporation add its profit, one should also recognize the fact that in the bottom line the corporations have the moral obligations to fulfill. The corporation should have a good relationship with the society within which it is operating. This is because businesses do not operate in a vacuum and their ability to make profits and become successful also depends on the relationship the business has with the society and the environment around. Societal resources such as the rule of law and consent are important tools which corporations cannot operate without (Stachowicz-Stanusch & Amann, 2017). The argument for the adoption of Corporate Social Responsibility, therefore, is basic for the development and growth of a business. Also, the corporations depend on the society for consumers, employees, infrastructure and other elements which are essential for the success of the business. For this reason, the corporations cannot ignore its stakeholders because they are part of the society in which the business largely relies on.
There is also the rational argument which supports CSR as a way to avoid external constraints. Adopting CSR means that corporations avoid issues like resistance and rebellion that can bring losses to the corporations. The world today is changed and most organizations and individuals are empowered to resist rogue leadership. Adopting CSR is a way of addressing the societal concerns and appreciating the societal views and values. If a corporation loses moral legitimacy then issues like social activism begin to penetrate and a company cannot thrive under such conditions (Schwartz, 2017). Societal sanctions such as prohibitions or even fines greatly affect the strategic goals of the corporations and thus adoption of CSR is not only moral but also rational.
Lastly, when companies reflect and address the concerns and needs of their stakeholders, they are likely to retain the loyalty of the stakeholders and thus add greater value to the business. Trust is an important tool for any business. When stakeholders do not trust the company, they may stop doing business with it and this would mean losses to the company. Adopting CSR helps in matching the expectations and values of the stakeholders with the business operations for constant growth (Schwartz, 2017). The society of today is more informed about how businesses should operate. Businesses and especially the ones that depend on the consumers directly risk their brand name and success when they operate in ways that are seen as socially inappropriate.
References
Schwartz, M. S. (2017). Corporate social responsibility . Routledge.
Stachowicz-Stanusch, A., & Amann, W. (2017). Corporate Social Responsibility and Corporate Social Irresponsibility. Organizacja i Zarządzanie: kwartalnik naukowy , (4 (40)), 107-115.
