Corporate Social Responsibility WHAT IT CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility (CSR) is the idea that businesses conduct business practices for the social good while they pursue economic goals. It refers to operating a business in such a manner that all social environmental impacts that are created are then accounted for. Both market and nonmarket stakeholders expect businesses to be socially responsible. (Business and Society) It is a commitment to developing policies that integrate responsible business practices into daily operations, and to report on the progress made toward the implementation of these practices. ("As you sow," 2011) So why is this so important? "Some see this work as charity, philanthropy, or an allocation of resources that could better be donated by shareowners themselves, but to us, it is a vital investment in our future, essential to our top-line and bottom-line business success." Dunn, Hewlett Packard Senior Vice President for Global Citizenship
Richard Murphy references a study, done in 2003 of buyer/supplier relationships, in his article “why doing good is good for business.” The study found a strong correlation between trust and procurement costs. The least trusted buyers in the study incurred procurement costs that were five times higher than the cost of most trusted buyers.” This statement alone shoes the value of social responsibility and how it now only impacts consumers views on the company but the relationships firms foster with suppliers. It is simply good for business. Throughout this report we will evaluate the importance of CSR and how it affects the firm and the impact the firm has on the community from and environmental perspective. A study performed in 2003, by researchers at the university of Iowa, evaluating the relationship between corporate social responsibility and firm performance; concluded “Corporate virtue, in the form of social responsibility and, to a lesser extent, environmental responsibility is likely to pay off.”1 After all it green is the color of money. It pays to go green this day in age. Going Green: Environmental Considerations Deseret Digital Media, also referred to as DDM, is an online internet conglomerate in the intermountain west. Being a media company, I’m sure much like others, environmental consideration are certainly a thought but not highly acted upon due to the “minimal” impact that online media has to the environment. While DDM has a strong company mission and culture, in which they excel and positively impact the community, they do little in means of protecting the environment. They are constantly in the public eye in their operation area due to their user base which leads me to believe that going “green” would only be a beneficial think for business. be good for business. 1
Mark Orlitzky, Frank Schmidt, and Sara Rynes, “Corporate Social and Financial Performance: A Meta-analysis,” Organization Studies, 2003, pp. 403–41. Also investigating this issue are Marc Orlitzky and John D. Benjamin, “Corporate Social Performance and Firm Risk: A Meta-analytic Review,” Business & Society, 2001, pp. 369–96; and for a contrarian view see Idris Mootee, “The Impact of Corporate Social Responsibility—From Creating Customer Goodwill to Influencing Social Standards,” Futurelab, blog.futurelab.net/2008/12.
ENVIRONMENTAL CONSIDERATIONS We only have one earth, and one ecosystem. We each need to do our due diligence in protecting that ecosystem. Understanding the earth’s carrying capacity, how fast resources are being used and what we are doing to change that, can only positively affect our world ecosystem. Damaging any part of the ecosystem in one area can affect others in other parts of the world. (Lawrence & Weber, 2010) Now human activity affects three major forms of natural resources; water, air and land. (Lawrence & Weber, 2010) Deseret Digital Media can actively improve business practices and protocols to reduce the company’s...
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