Corporate social responsibility

From CEOpedia | Management online

Corporate Social Responsibility is the obligation to select by the manager such decisions and actions that contribute both to self-interest (multiplying profits of the company), as well as to protect and multiplication of social welfare

This definition points to two aspects of corporate social responsibility. Speaking of protection, the emphasis is on preventing companies from activities that are socially harmful, even if they are making profit. Furthermore, companies should take action that will be aimed at preventing and eliminating various negative social phenomena of their activity. Speaking of multiplication, the emphasis is on the creative role of business in creating social welfare. Business ethics is important part of corporate social responsibility]]

Assumptions of Corporate Social Responsibility

The concept of Corporate Social Responsibility, is based on following assumptions:

  • businesses and the public are immanent elements of a complex whole in which the idea of mutual solidarity between people has the primary importance. Strategic goal of business is to contribute to increased prosperity and improved quality of life of citizens,
  • dynamic nature of the social system encourages companies to conduct mainly preventive actions and anticipate the risks in the social field, in order to maintain its role in the long run,
  • about minimum level of economic and legal responsibility decide societies having particular standard of living, and in a particular stage of social development (mainly their demands for corporate responsibility regarding economic efficiency and law enforcement in their activities),
  • every action of the company is taken in care about customer, workforce and environment.
  • consequence of the kind of responsibility adopted by the company is its organizational structure prepared for the implementation of social objectives corresponding to the demands and expectations of target groups of consumers.

Effects of Corporate Social Responsibility

To social benefits include: improvement of the environment, contributing to economic development, educating the public, promoting charitable attitudes. Such activities also brings benefits to businesses, both internal and external. The company is seen as an attractive employer leading to increased motivation and commitment of employees, an increase of organizational culture and innovation. The external benefits include, in particular increasing the efficiency of business, increase investor interest, competitiveness in the market, attract new customers and deepen loyalty, thereby gaining a positive image of the company and its mission more reliable.Companies that undertake social activities, can count on help from the authorities in the form of subsidies or tax reductions.

See also:

Corporate social responsibilityrecommended articles
Importance of business ethicsManagement by valuesEthical factors affecting businessCorporate social performanceManaging diversityEffects of cultureDiversity managementTypes of organizational changeOrganization life cycle