Profit maximization has been traditionally accepted as the singular and most significant objective of an enterprise. Corporate social responsibility (CSR) is a “concept that suggests that commercial corporations have a duty towards all of their stakeholders in all aspects of business operations. These can include (but may not be limited to) employees, customers, suppliers, community organisations, local neighbourhood and shareholders. According to the stakeholder’s theory, directors should have multi fiduciary duties towards all the stakeholders. Stakeholders are the people who affect and are affected by the company. The stakeholders view of strategy is an instrumental theory of the corporation, integrating both the resource based view and the market based view, it is opposed to the view where the company solely tries to increase the value for shareholding. The stakeholder’s theory demands more than satisfaction, I believe that the practice of corporate social responsibility can go hand in hand with competitiveness and profitability. As we move into the future it is hard to see how organisation can place more emphasis on other performance indicators other than profits as it has always been the single most important thing... [continues]
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