Corporate Social Responsibility

Corporate Social Responsibility

Student’s Name

 Institutional Affiliation

Corporate Social Responsibility

Corporate Social Responsibility (CSR) is a business practice of participation in initiatives that benefit the society. Through CSR, a company balances its social, economic and environmental responsibilities to address the expectation of the stakeholders (Lindgreen & Swaen, 2010). CSR is a management concern and should be incorporated into the business culture, values, strategy, and decision-making.

Several elements can be derived from the definition of CSR. Businesses have other responsibilities apart from offering services and goods at the profit. Some of the responsibilities include participating in finding solutions to social problems beginning with the problems they create. The business’ stakeholders constitute more than shareholders. The operations of businesses also generate impacts beyond marketplace transactions. Further, businesses serve a broader category of human values beyond focusing on economic values (Terris, 2005).

The main idea behind CSR is that corporations and society are an intertwined entity.  Businesses are expected to be socially responsible because they are moral actors within the society. Businesses are also regarded as institution and organization in the society. Three Corporate Social Responsibility principles apply on business by regarding them as an individuals, organization, and institution. They include the principle of managerial discretion, public responsibility, and legitimacy (Popa & Salanta, 2014).

The principle of public responsibility places a responsibility on businesses for consequences resulting from their involvement with society. This means that a business has a responsibility to problems related to their interests and activities. The businesses should, therefore, solve the negative consequences they create to the society. Different businesses have different impacts on the resources of the society, hence, have varying social responsibilities. The principle emphasizes the relationship of each business to its distinct political, social and ethical environment (Terris, 2005).

The principle of legitimacy states that the society grants power and legitimacy to businesses. The businesses in return appropriately use the power or lose it if they do not use it. When a business achieves the legitimate functions and a level of relationship with the society, it is granted power. The principle focuses on the legal obligations of the business as a social institution. If the business does not meet the expectations, the society takes away the legitimacy or power.

Managerial discretion implies that managers are moral actors required to exercise te discretion they have to achieve outcomes that are socially responsible. The discretion comes in because corporations do not expressly state the actions of managers regarding social responsibility. The level of implementing CSR depends on the individual with the responsibility, opportunities and choices to achieve the social responsibility of corporation.

Corporate Social Irresponsibility

Corporate Social Irresponsibility is the failure of a business to meet the expectation of the society.  The failure is presented when businesses behave in a way that is less ideal regarding the expected ethical commitments, legal obligations, and business practice. CSI is also exhibited as a poor response to environmental, social and economic factors (Terris, 2005). CSI is presented in various forms such as environmental degradation, bribery, corruption, and social injustice. The most frequently experienced examples of CSI include human rights violation, unfair and unequal treatment of employees, workplace discrimination, fraud, false product information, and damaging the environment. CSI is a dangerous practice for a business and should be avoided.