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The significance of Corporate Social Responsibility
Arguments for and against the concept of corporate social responsibility
Arguments for and against the concept of corporate social responsibility
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As the socialization of enterprise management evolves continuously, significant attention has been drawn to the implications of corporate social responsibility (CSR). CSR is generally defined as "a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis" (European Commission, 2001, p.6) As indicated in the definition, social and environmental concerns should exert influence on the company's stakeholders including not only actual shareholders but also other relevant social subgroups (Freeman, 1983). Despite the absence of a universally accepted metric to quantify the effect of each specific investment due to the complexity of contextual However, A typical query proposed that environmental concerns are generally followed by massive upfront investments, which is likely to abate companies’ competitiveness (Mcguire, Sundgren, & Schneeweis, 1988). While in the automotive industry, several cost reduction ways can be brought about by environmental measures to offset, if not exceed, the aforementioned additional investments (Soloman & Hansen, 1985). Descriptive statistics in automotive industry indicated that eco-friendly CSR measures, such as energy-efficient technologies adopted in vehicle-assembly line, innovation for car recycling and dismantling, are believed to be conducive to cost reduction and profitability enhancement (Cortez & Nugroho, 2010). As a case in point, BMW (2014) claimed a cost saving of 15.8 million euros from resource-efficient production. On the other hand, a mounting number of legally binding environmental policies, which may lead to substantial taxation if companies are substandard, have been imposed on the automotive industry. Driven by regulations, automotive companies will tend to proactively improve their environmental performance for tax deductibility to reduce their capital expenditure (Hall, 2010). Despite additional investments required to concretize environmental concerns, these CSR measures can still benefit automotive companies by reducing substantial
Corporate Social Responsibility (CSR) is the way a corporation achieves a balance between its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations. In general, when firms hold this wider encouraging role on the public by being engaged with stakeholders, a variety of profit can be produced for both company and the stakeholders. A key inclination is the combination of Corporate Social Responsibility (CSR) into the organization strategy, culture, mission and communications. By incorporating corporate citizenship into the company it is no longer an additional “nice thing to do” or something made to obey laws or regulations. Instead, corporate responsibility has become something business leaders and workforce want to engage in, frequently because executives who believe in the long-term see business profit. The four types of social responsibilities a...
Increasing environmental awareness, coupled with a responsible American government and improved technology, have all contributed to the comeback of low-and zero-emissions vehicles in the US. It remains to be seen whether the automakers and oil companies will once again work to halt this progress, or embrace it as the technology of a more responsible future.
The U.S. has approximately 119,000 companies involved in the environmental technologies and services industry, which is a $782 billion market. Also, firms must offset new or additional emissions with emission reductions by a 5-to-1 ratio. This means any firm who increases their emissions output in one area by one ton must reduce their emissions output in another area by 5 tons (McKee, 1991). Finally, new emissions producing companies will have to start up with state-of-the-art equipment.
Ever since the Environmental Protection Agency otherwise known as the EPA, and the Clean Air Act were enacted into law in 1970 the American Auto Industry has been inundated with many environmental challenges such as brake debris/tire particles, paint and coating, auto shredding residue, battery content, smog, and gasoline. For the first time in 14 years, cost reduction ranked 32% compared to environmental issues such as emissions and fuel economy which ranked 53% in consumer reports.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
Many vehicle manufacturers have paid more attention on CSR to sustain their business development. Environmental management schemes, green supply chain management and labor codes of conduct are widely recognized and implemented within the industry (Martinuzzi et al., 2011). Automakers also rate it more important comparing to other factors of the company. For instance, the disclosure of the general movement of social and environmental accountability, according to the established opinion leaders in the automotive industry, is increasingly positioned at the forefront of any economy and business context (Russo-Spena et al.,
In recent years, companies are becoming socially responsible and now stakeholders almost expect a company to have CSR policies. Therefore, in twentieth century, corporate social responsibility (CSR) became an important development in public life (Barnett, ND).Corporate social responsibility is defined as “the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance” (Johnson, Schools and Whittington, N.D cited in March, 2012). Stakeholders can be defined as “those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Schools and Whittington, N.D cited in March, 2012). There are many purposes for this essay, the first purpose is to descried the key principles of corporate social responsibility and explain their importance for stakeholders. Secondly, is to show how far this company follows those principles in order to be accountable to at least three of its stakeholders. In this essay, three stakeholders, environment, customers and employees will be evaluated respectively and the key principles of the stakeholders will be examined.
Intellectual property and patents also pose as a significant cost for this industry. Auto parts are mostly customized to meet the specific requirements of a customer. Thus, it is important to protect ownership rights of the invention/design. Other major costs incurred by APSs include R&D as stricter regulations imposed on the automobile industry push for more efficient systems. On the R&D front, Michelin invested about $764 million or 3.25% of revenue in the year 2015 whereas Bridgestone spent about $660 million or 2.51% of its revenue. Rapid technology adoption, increased introduction of new and revised models, platform consolidations is the new automotive industry norm. Regulations on fuel efficiency, safety and emission reductions will determine demand from OEMs for auto parts that meet these requirements. For example, by the year 2021, all vehicles in the US are mandated to have a sales weighted average fuel economy of 45mpg. Similarly, in the EU region, vehicles produced are not to emit carbon dioxide in
I begin this essay by defining CSR, there are many definitions for this term by various different theorists, and EU says that CSR is "A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." On the other hand, Sloman et al. define it as "The concept in which a firm takes into account is the interests and concerns of a community rather than just its shareholder". Davis and Blomstrom (1966), say it "Refers to a person’s obligation to consider the effects of his decisions and actions on the whole social system". These definitions differ from one another in many ways but they agree that CSR involves taking the environment into account and therefore, one must look take social responsibility.
What is the socially optimum level of production keeping in mind the environment? How should it be achieved? It is at this point that the great economic minds of out time begin to take up arms. Michael Porter, a Professor of Business at the Harvard Business School claims that environmental regulation of businesses will actually give the businesses a competitive advantage over their counterparts in nations with less stringent regulation because it forces them to innovate. Porter claims that by changing their production processes, the businesses will actually lower their production costs (Porter, 97).
Business organizations regularly run into demands from various stakeholders groups when conducting day-to-day business. These demands are generated from employees, customers, suppliers, community groups, governments, and shareholders. Thus, according to Goodpaster, any person or group of people that can shape or can be shaped by attainment of the objectives by an organization is considered a stakeholder. Most business organizations recognize and understand their responsibilities to these groups and endeavor to honor and fulfill them. These responsibilities are often communicated to the public by a statement of principles or beliefs. For many business organizations, corporate social responsibility (CSR) has become an essential and integral part of their business. Thus, this paper discusses the two CSR views: the classical view and the stakeholder view. Furthermore, I believe that the stakeholder view has brought ethical concerns to the forefront of businesses, and an argument shall be made that businesses would improve both socially and economically if CSR, guided by God’s love, was integrated into their strategic planning.
Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...
Just selling a great product or having great service is not enough for today's socially conscious shoppers. Today corporations have to look at other factors including participating in events in the community and being socially responsible. Social responsibility for corporations was not a major focus until recently. I think it is interesting the different ways and examples corporations all over including the company I work for C.H. Robinson. I want to see what they do compared to my former employer Sears Holdings to see differences good or bad from different industries. I think I work for the better company in every way now but I could be wrong on their social responsibilities.
“We have a social responsibility, a constitutional opportunity and a moral obligation to help others” - Janie Lewis (EnkiQuotes, 2017).
These groups introduced the rule that US mid size vehicles must list the entire components within and materials type and mass must also be identified. In order to justify the government reaction, the necessary data has been taken for clarity, and tangible control for the effect of emission on the environment is also underway. It is clear that the US consumption of polluting substances like lead, platinum and rubber has dropped due to improvements in the environmental friendliness of auto manufacturing, since these materials have been in use for cars since the 1950s.