Name: Mantas Ubartas
Student Number: 0854186
This essay represents the interest of business to engage in Corporate Social Responsibility (CSR) and the factors that are considered important for Corporate Social Responsibility, the impacts of CSR on business and the outcome that business achieves due to the implementation of Corporate Social Responsibility (CSR). This paper also discusses the key issues, process and theories through which globalization took place and the ways in which Multi National Companies’ (MNC) activity can affect national economies, governments, employees and trade unions. It also discusses the operation and impact of MNCs. The business case for CSR can be considered. Many economists have the view that CSR is not actually the demand of social ones. One of them has the view that it is not socially desired. Milton Friedman mentioned that the only social responsibility of a business is to maximize profits.
To what extent is it in the interest of business to engage in Corporate Social Responsibility (CSR)? Before going into the pool of Corporate Social Responsibility, we should be familiar with the term Corporate Social Responsibility, which is abbreviated as CSR. It can be profitable for the businesses and so for businessmen. Corporate Social Responsibility cannot be defined as a specific term. Different researchers and economists gave different definitions to it according to their point of view. Most of the researchers agree that, ‘Corporate Social Responsibility is a process by which, businesses are monitored.’ It has its own standards that are internationally accepted as the rules and regulations through which businesses are monitored. The word ‘responsibility’ describes that it takes the responsibility of concerned companies and appreciates their impact on customers, employees and stakeholders. The history of Corporate Social Responsibility is not as old as business’; however, as the business community realised the importance of the Corporate Social Responsibility, the knowledge about the term is continuously increasing. In late 1960s, Corporate Social responsibility appeared as an important pillar in the development of a business. With the emergence of Corporate Social responsibility, different multinational companies (MNCs) started using the term “stakeholder”. This term was initially used to give explanation of the corporate owners (beyond the shareholders of a company), as a result of an influential book by R. Edward Freeman, Strategic management: a stakeholder approach publshed in 1984 (Freeman, 1984). Corporate Social Responsibility is also accountable for the actions of concerned companies and it answers some questions, such as what are their missions, views, and motives? Community anticipated in business willingly to get involved in fixing social issues. The whole idea was that the organizations should go beyond their financial and legal obligations and support the community. This perspective of business social liability is adopted in most of the world these days. CSR involves:
Directing businesses towards ethical manner and towards benefits of the community. Responding favourably to growing social significances and opportunities. Willing to perform ahead of controlling confrontation.
Balancing investor aims and objectives against the aims and objectives of the community. Being excellent resident in the community.
Business Case for CSR
Many economists have the view that CSR is not actually required by the socially desired. Milton Friedman argues that the only social responsibility of a business is to maximize profits (Friedman, 1962). He also argues that the stockholders and customers are free to utilize their money and the manager of a company should plan long term projects. The business management scholars are finding arguments for a business case involving CSR (Onkvisit and Shaw, 2009).
Cost and risk issue