Corporate Social Responsibility (CSR) refers to a model that self-regulates business, which enables a company to have social accountability to its stakeholders, itself, and the public. Through CSR which is also known as Corporate Citizenship, organizations especially companies can develop consciousness in regard to the type of impact they have on all societal facets including social, environmental, and economic. In order to engage in Corporate Social Responsibility in the normal business course, a company must operate in a manner, which enhances environment and society, instead of causing negative impact on them. Companies, which have strong corporate citizenship reputations gain respect for contributing to societal value in a comprehensive manner through their services, products, support to community, and operational excellence (Mazutis & Slawinski, 2015). Four main structural aspects, which can guide effectively a company to develop their structure of Corporate Citizenship, include participation of the Chief Executive Officer, the process of involving leaders who are senior, the Corporate Citizenship Department’s role, and the staffing of the CCD and functions.
Corporate Social Irresponsibility
Corporate Social Irresponsibility (CSIR) refers to failure by a corporation to act in a responsible manner. CSIR relates to a company undertaking activities which are wrong or harmful in relation to the society, community, environment, ethics, profitability and people. The act resonates around companies engaging in irresponsible behaviours like evading tax, polluting environment with wastes, trading in unethical manner, failing to give back to the society and exploiting the consumers or customers. The implication of a company acting irresponsibly entails damaging of reputation, loosing of customers, compensations in legal suits, loss of motivation among the employees, penalties and loss of revenue (Lin-Hi & Miller, 2013). The ultimate result of CSIR may be closure of a company, since people, society and government may impose sanctions to those that involve in the act.
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My Stand on CSR v CSI
Companies should engage in CSR unlike CSI due to benefits they would derive from the behaviour. Currently, companies that trade in the global market are required by law at national and global level to take part in CSR unlike CSI in order to be relevant and compete ethically. Therefore, various jurisdictions have come up with standards regarding CSR that companies must meet. Therefore, a company that engages in CSR unlike CSI will be competitive in national and global markets as they will not have legal tussles with regard to the CSR obligations. Further, CSR unlike CSI would create a cordial relationship between company and the stakeholders thus have stable environment to do business, thus generate revenue. Nonetheless, CSI may be costly to a company, since it would create tension between a company and stakeholders, hence create a hostile environment for the business to thrive. In my view no company has a right to overlook their responsibility to stakeholders in their bid to add to up to their bottom line. Currently, stakeholders are protected by national and international law after the government of China introduced the Scientific Outlook on Development that priories the interest of stakeholders and paced emphasis on sustainable and balanced trade (Shambaurg, 2008). Countries across the world have also developed the model and enacted laws that specify penalties for a company failing to respect the rights of the stakeholders for the sake of doing business to increase its profit margin.
References
Lin-Hi, N., & Müller, K. (2013). The CSR bottom line: preventing corporate social irresponsibility. Journal of Business Research, 66, p. 1928-1936.
Mazutis, D. D., & Slawinski, N. (2015). Reconnecting business and society: Perceptions of Authenticity in Corporate Social Responsibility. Journal of Business Ethics, 131,137-150.
Sharmbaurg,D.l. (2008). China’s Communist Party: Atrophy and adaptation. University of California Press
