OMM640 Business Ethics and Social Responsibility
Instructor: Dr. Alan Swank
October 7, 2012
Corporate Social Responsibility in Business Today
Boatright (2009, pp 349) relates that Feuerstein’s pledge to continue paying his workers eventually cost them their jobs, and cost Feuerstein his company. Feuerstein’s commitment personifies a company’s responsibility to a community and workers. Corporate Social Responsibility (CSR) influences the local community and the world as well. Its impacts are social, economic, and environmental. For the most part, CSR is considered an intangible asset; therefore, a company’s responsibility to the community is predicated on intangible assets (Godfrey, Merrill, & Hansen, 2009). Over the last two decades, companies have recognized a need for a Corporate Social Responsibility (CSR); therefore, a strong corporate responsibility to the community is needed in business today. Godfrey, Merrill, & Hansen (2009) study on the relationship between corporate responsibility and shareholders relates that intangible assets held by the firm will influence the value of its CSR activity. Intangible assets range from employee loyalty, to customer confidence in the way a company interacts with the community. These intangible assets often have a outcome on a business success: customers devalue the brand, key employees leave or work less productively, suppliers tighten terms, increased costs of capital preclude otherwise profitable investments, etc (Stulz, 2002). Therefore, CSR activities that provoke a positive response are more valuable to a company when stakeholder relationships and the resulting intangible assets play a larger role in creating value (Stulz, 2002). Vision Best for the Company
As mentioned earlier, Feuerstein’s pledge to continue paying his workers eventually cost them their jobs, and cost Feuerstein his company (Boatright, 2009). Most businesses start out with...