The paper "Corporate Social Responsibility - Internal and External Stakeholders" is a great example of business coursework. A corporation is commonly referred to as a legal person with the ability to transact in trade activities. It has rights as well as duties. It is an establishment that has a privilege known as the corporate veil (Idowu et al, 2015). This honor, exonerates the individuals that carry out the organization’ s operations, from the liability that may result from the routine administration of the business. Owing to the legal umbrella that the corporate person operates under, individuals such as executives, managers and entrepreneurs are able to undertake innovative business risks, without the fear of legal reprisal.
With this understanding, it is imperative for the corporation managers and players to appreciate that the privilege accorded to their institution, demands higher standards of accountability. It is for this reason, that business ethics directs organizations to carry out their operations in consideration of the community and the surrounding environment. This measure is known as the ‘ corporate social responsibility’ (Idowu et al, 2015). Consequently, the establishment is expected to embrace policies and decisions that enhance sustainability.
This can be done by focusing on key areas such as economic, environmental and social issues. Internal and External Stakeholders The corporate social responsibility outlines the obligation of a firm to the society and other stakeholders as a whole. Each organization is expected to run its business within the confines of basic business ethics. It should strike a balance between making profits and relating positively to stakeholders. A firm should be concerned with the welfare and interest of all its stakeholders. These include internal and external stakeholders who have different needs and expectation of an existing organization.
Internal stakeholders comprise of employees, administrators, managers and the business owners. On the hand, external stakeholders include, target customers, the shareholders, relevant authorities and government agencies, suppliers, creditors and the community at large. Employees are an integral part of the success and operations of any firm. The firm is therefore obligated to observe fairness and give equal opportunities when hiring staff members. In addition, workers are entitled to proper remuneration as per the provisions of the union deliberations and fair labor laws.
The firm should undertake legal requirements related to employees such as tax remittance and tax compliance. Business institutions should also promote a culture of tolerance in this era of diversity and globalization. It is the responsibility of an organization to ensure personal growth of its personnel by planning for training programs and outlining a clear path to promotion and growth. Most importantly, organizations should ensure they provide safe environments for their workers to operate in. Employees should not be exposed to the hazardous atmosphere while they are performing their duties.
In addition, proper equipment and garments should be provided to protect workers who operate in hazard-prone areas. It is the responsibilities of such entities to provide insurance for employees such as the medical and workplace compensation insurance. Once a company’ s operations are ongoing, it is the responsibility of the firm to provide quality products and services to its customers for sustainability. Hence the administration should ensure customer satisfaction by providing continuous and stable supply. An organization should establish the need and expectation of its customers and meet these needs with fair pricing and honest marketing strategies.
Furthermore, the traders should assure the customer of quality products. This should be done by continuous research and improvement in product design and development. After completing a sale, the firm ensures that the after-sale service is efficient. This service may consist of getting feedback from the client. Product defects should be addressed through a warrant regime where maintenance and repairs are carried out. Subsequently, the firm can also undertake measures to recall defective products and ensure the said defects do not recur.
Griseri, P., & Seppala, N. (2010). Business ethics and corporate social responsibility. Australia, South-Western Cengage Learning.
Idowu, S. O., Frederiksen, C. S., Mermod, A. Y., & Nielsen, M. E. J. (2015). Corporate social responsibility and governance: theory and practice. http://search.ebscohost.com/login.aspx?directt=true&scope=site&db=nlebk&db=nlabk&AN=920364.&
Landau, E. (2011). Oil spill!: disaster in the Gulf of Mexico. Minneapolis, MN, Millbrook Press.
Wishart, D. (2009). Economic, social and environmental sustainability - do they really overlap? Dundee, Tay Estuary Forum.