The paper "Stakeholder Engagement and Corporate Social Responsibility as Tools for Commercial Successes" is a great example of business coursework. While it is widely acknowledged that interplay between corporate governance, stakeholder engagement and corporate social responsibility (CSR) continues to evolve, the three mechanisms have significant positive social and economic impacts, which may bolster the competitiveness of companies that operate in an industry where competition is seen as a dominant force. Stakeholder engagement and CSR are intrinsically intertwined with market forces, and companies with botched stakeholder engagement governance and CSR become less competitive (Grigore et al.
2015). Hence, an organisation has to be accountable to and engage society. The idea points to the concept of CSR and stakeholder engagement. CSR refers to a systematic attempt a business makes to commit itself into behaving ethically, engaging stakeholder, and contributing to economic development while simultaneously improving the wellbeing of its employees, the local communities, as well as the larger society (Mwangi & Jerotich 2013). On the other hand, engagement describes the degree of interaction demonstrated by stakeholder towards a company, and how the interaction influences the stakeholder’ s emotions and actions (Bal et al.
2013,). This implies that businesses have to contribute to the wider societal development, rather than just focus on profit-making interests (Reinhardt et al. 2008). It is against this backdrop that the media article "Why startups can't ignore CSR, " which was written by Dinushi Dias and published by SmartCompany on 28 July 2016 is reviewed. The objective is to provide an outline and summary of the arguments in the article, examine the corporate governance issues it raises, determine why the arguments are made, and provide an opinion on the corporate governance issues it raises. The corporate governance issues raised in the article The selected article raises two critical corporate governance issues.
These include CSR and stakeholder engagement. It has described the significance of CSR to a start-up business, narrated convergence between CSR, stakeholder engagement, and business profitability, as well as highlighted how some companies have successfully incorporated CSR as part of their corporate governance. Outline and summary of the arguments the article makes Dinushi argues in her article that start-up companies should consider CSR in their corporate governance strategies as this would allow them to attract more customers and at the same time create a better society.
In her view, start-up companies and CSR go hand in hand, as they rely on the success of the society for their businesses to grow. To support this argument, Dinushi goes ahead to argue that start-up companies are less likely to be successful when the economy experiences a crisis. The author of the article highlights that it would be difficult for start-up companies to grow when their customers are marginalised by social issues hence leading to a situation where they cannot even notice an innovative product the start-up companies promotes.
Hence, CSR brings start-ups vast opportunities to achieve competitive advantage. Indeed, as Dinushi illustrates in the article, it is estimated that nearly 50 percent of the Australian population consider it crucial for a company they buy from to practice CSR, and will consider buying from a company that is socially responsible. Additional statistics that Dinushi provides in the article show that some 60 percent of consumers in Australia are bound to consider buying brands linked to socially responsible companies.
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