Corporate Social Responsibility
In this report, it critically researches two organisations that are implementing some form of corporate social responsibility. It identify’s one definition of Corporate Social Responsibility (CSR) based upon academic resources. In addition, corporation that is likely to experience competitive advantages by being socially responsible. Followed by what ways the organisation are socially responsible and discusses the impact of these actions of the two organisations. The first organisation examines Coca Cola Company and the second organisation examines The Body Shop International. Also applying and interpreting support materials and analysing issues with clear evidence of support for statements, points of fact, opinion of writer with relevance support material to topic examples of evidence. In addition with cohesive discussion that links theory to practice using quality and adequacy of source analysis of support material. It is intended, therefore, to critically explore corporate social responsibility in these two organisations.
Definition of CSR
In the past, the classical view insists that managements only have a responsibility in business practise to maximise profit. (Waddell, 2005) In other words, the theory states that the responsibility concerned by management in business practise should always be to maximise shareholder’s value. (Waddell, 2005) However, contemporary view of corporate social responsibility is beyond the classical view which only considers its internal shareholders. According to Lewellyn (2005, p 1),' Corporate responsibility is best characterised as being the contribution that a company can make to helping society as a whole become sustainable, and extends to both social and environmental responsibility as well as being financially viable.'
The theory indicates that a socially responsible organization should not only focus on maximise shareholders value but should also consider their external stakeholders. (Waddell, 2005). In other words, organization should have an active approach to give contribution to society and being responsible to society and the environment through its business practice as giving good financial performance itself.
CSR has been defined in specific ways by different authors, but the similar concept of CSR can still be discovered from different ideas. The concept is that organization should concern and contribute to society and environment as well as maximising its profit. In other words, organization should be more than just a legal entity which only aiming at their financial goal, it should also be able to concern and contribute to its surrounding environment and society.
However, deeply, different definitions seem to specifically focus on different aspects that corporation should be responsible for and contributing in. Hamann & Acutt (2003) suggest an idea that organization is responsible to link its financial performance to the social development. In other words, corporation should invest into the society thus to ensure the sustainable development of the both the community and corporation in the long-term (Hamann & Acutt). Obligation of society developing should be taken by corporation for both urban and rural areas thus to help society to grow on a more healthily and sustainable track which drive the publics welfare to the future (Hamann & Acutt).
On the other hand, Doanne mainly suggests that organization should extent their responsibility and regulates itself voluntarily to assist and protect environment and community as well as being profit maximising. A socially responsible company should also consider the impact of their action to the society and environment, thus to take the obligation to deal with those social and environmental evils, such as pollution (Doane, 1999)
Comparing to Hamann & Acutt and Doanne’s interpretation of CSR, Llewellyn’s definition seems boarder and more complete....
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