To What Extent Does Corporate Social Responsibility Beneficial to a Company’s Performance?
To what extent does Corporate Social Responsibility beneficial to a company’s performance?
Hot debates were arose everywhere in the society about the extent of Corporate Social Responsibility (CSR). Mallen Baker (2004) states that CSR is about how companies manage the business processes to produce an overall positive impact on society. Supporters of CSR claim that Businesses and Corporations are not only about making money especially for big business. They should show social responsibility, moral standard and city spirits to the community. They should give something back to the society. Critics argue that Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners by laisser-faire (1980). The debates have been arose for several years. People seems to have reached a consensus that CSR may be necessary but to what extent it is essential for the performance of the company. Balances should be struck between the social responsibility and the profits enjoyed by the owners and the shareholders of the company. This essay aims to discuss the extent to which CSR is beneficial to a company’s performance. An in-depth analysis about the extent would be made in the following essay.
First and foremost, the reason why big business should not only making money is that only aiming at making money but focuses a little on CSR may harm the society as a whole and also may indirectly affect the performance of the company. Provided that some corporations regard making money as its major target, it may use their means to achieve its target, including the ways which may pose a threat to the general public. For the sake of maximizing profit, the directors may be willing to increase their revenue at the expense of others’ welfare. The crisis of the mini-bonds of Lehman Brothers is an example showing how only targeting at making money may harm the society and the company’s performance. Finally, the Lehman Brothers is closed
Hot debates were arose everywhere in the society about the extent of Corporate Social Responsibility (CSR). Mallen Baker (2004) states that CSR is about how companies manage the business processes to produce an overall positive impact on society. Supporters of CSR claim that Businesses and Corporations are not only about making money especially for big business. They should show social responsibility, moral standard and city spirits to the community. They should give something back to the society. Critics argue that Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners by laisser-faire (1980). The debates have been arose for several years. People seems to have reached a consensus that CSR may be necessary but to what extent it is essential for the performance of the company. Balances should be struck between the social responsibility and the profits enjoyed by the owners and the shareholders of the company. This essay aims to discuss the extent to which CSR is beneficial to a company’s performance. An in-depth analysis about the extent would be made in the following essay.
First and foremost, the reason why big business should not only making money is that only aiming at making money but focuses a little on CSR may harm the society as a whole and also may indirectly affect the performance of the company. Provided that some corporations regard making money as its major target, it may use their means to achieve its target, including the ways which may pose a threat to the general public. For the sake of maximizing profit, the directors may be willing to increase their revenue at the expense of others’ welfare. The crisis of the mini-bonds of Lehman Brothers is an example showing how only targeting at making money may harm the society and the company’s performance. Finally, the Lehman Brothers is closed
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