Corporate Social Responsibility

Corporate social responsibility has been used by many different commentators to mean a variety of things. The meaning if the term as it is used in this article goes beyond the legal obligations of corporate and refers to their responsibility to fulfill additional social obligations that come about as a result of the activities of the corporation in the community. The content of a implement corporate social responsibility program will reflect the concern that the organization has for the society and the impact its actions have on society. This is important as the relationship symbiotic between the corporation and the community is often said to be symbiotic of nature.

The idea that commercial companies implement corporate social responsibility programs as a mechanism that will provide them comfort that the company is contributing to a community is a major misconception. What defines a corporate social responsibility programs is not the exclusion of profit as an outcome but its exclusion as a motive.

A company might decide to keep open an unprofitable plant for longer than economical necessary in order to avoid mass unemployment in order to, at the same time, assess the productivity and business processes in such a way that it will allow the workforce to rewards this loyalty with productivity gains that will make the plant profitable once more.

If is true that corporations provide goods and services to increase the wealth of the shareholders, however the operations of the company's activities affects the society both positively and negatively. For this reason there is a need to consider the interest of the community.

Some opponents of the corporate social responsibility concept argue that corporations do not specialize in handling social responsibilities they merely serve an economic purpose while governments are there to serve the social needs. This group also argues that organizations are there to increase profits for share holders and it is not their core business to look after society and therefore, they argue, that it is unfair and distractive to expect corporations to get involved in social programs.

The supporters of the corporate social responsibility concept, on the other hand, reason that organizations should engage in social reasonability programs that will make their companies more sustainable by ensuring strategic alignment with the community and thus increasing the wealth and eliminate any possibility of a negative image.

Corporations that are contributing to education related to its industry, healthcare for its workforce and their families and the general security in an area can expect that it will lead to an increase in social stability and this normally serves the interest of the corporation.

In the next section the nature of corporate social responsibility and the elements to consider will be discussed.

Nature of Corporate Social Responsibility

Economic Influence

Most commercial companies have as one of its primary aims to generate economic wealth for its shareholders. This does not necessarily mean maximizing the profits or dividends in the short term. It is probable that economic wealth maximization could mean that the profits of the company can be maintained for a long term, thus resulting in sustainable growth in the market capitalization of the company. This in itself is a major driving force in implementing a corporate social responsibility program as organizations normally grows better in a sound economic environment.

Legal Impact

Another driving force for the implementation of a corporate social responsibility program is the need to abide to all relevant laws and regulations pertaining to the business of the company. The moral values of a country is often reflected in the laws of the country and any approach that is designed to ensure that the company is abiding by the laws and regulations of the country will for a sound basis for a corporate social responsibility program that will be accepted by the community.

Ethical Dimension

Companies are often prepared to go to the extra mile beyond the requirements of the law and what it dictates. This will normally allow the company to take moral high ground. This normally entails adherence to human rights requirement, not applying any discriminatory practices and subscribing to a code of conduct that is fair and just.

Philanthropic Facet

Companies often also subscribe to social improvement programs like funding sports and education programs, building recreational facilities for employees that may be living in remote areas and contributing to charities that is near and dear to the owners. This type of philanthropic contribution in the community where a company operates should not be confused with regular charity work. Philanthropic aspects that can be justified from a business perspective normally forms part of the corporate social responsibility program whereas other, non business related humanitarian programs is deemed to be welfare programs.

Conclusion

Corporations normally provide goods and services to a market what is much wider than what they directly impact, but their operations affect the immediate community the most. This impact can be both positive and negative and therefore it is imperative that the corporation need to consider the interest of the community to ensure their continued existence in the area.

The debate on the appropriateness of the extensive implementation of a corporate social responsibility program or not is long from over, however ensuring the sustainability of the community within which a corporation operates is necessary for the sustainable growth of that corporation.