The paper 'Multinationals and Corporate Social Responsibility' is a good example of a Management Assignment. According to Leonard and Rodney (2003, pg. 1), corporate social responsibility is a concept used to describe the way organizations take into account the social, financial, and environmental impacts of actions and decisions they engage in. The term is an increasingly significant issue in business, as employees, investors, managers, and consumers have started to comprehend how economic growth is connected to environmental and social well-being. Corporate social responsibility is a major concern for any firm aiming sustainability in its long term.
Whereas it is a typically voluntary theory, there is rising pressure on organizations to make a constructive contribution to people, or at least, minimize their negative effects (Clarkson E 1995, pg. 92). Internationally, states are also advancing towards enforcing certain essentials of corporate social responsibility, especially concerning environmental protection. Responsible organizations may not necessarily have the ability to measure the positive contributions their action has on their performance. Nevertheless, irresponsible businesses are able to notice the negative outcomes their decisions portray on their bottom line (Lindgreen & Valé rie 2010, pg.
4). Sustainability of businesses now and in the future depends on whether organizations take into account the environmental and social significances of their behavior and decisions. In the past, many organizations and managers were primarily focused on augmenting shareholders' value. Traditionally, managers paid attention to short to medium term profits and fuelling the shares price up (Anshen 1970, pg. 6). Nevertheless, there has been an improving trend, which shifts from simply improving the shareholder’ s returns and rather focuses on aggregating the value of the organization in terms of the stakeholders.
The shareholders comprise of people like business owners, consumers, employees, shareholders, and associates. Businesses, which are socially responsible, seek to undertake decisions that are meant to benefit their different stakeholders. Understanding and developing corporate social responsibility can assist businesses to edge out their competitors. By staying ahead of the competitors, the business will gain a chance of providing benefits to a wider variety of business stakeholders (Baron 2001, pg. 7). Different Stake Holder Perspectives Opinions differ on the way responsibility should be allocated across different stakeholders such as regulators and governments, employees, communities, customers, and suppliers who constantly demand that businesses recognize a broader range of responsibility in addressing different challenges (Clarkson E 1995, pg.
95). As a result, firms are increasingly working alongside their stakeholders to comprehend their stakeholder’ s concerns and views on various social, environmental, economic, and corporate governance issues and to integrate and address them in the tactical decision-making developments of the business (McWilliams & Donald 2001, pg. 117). The different stakeholder’ perspectives include: Economic Perspectives This perspective entails a company revealing its effects regarding the economic conditions of its stakeholders as well as on economic systems at local, nationwide, and international levels.
Businesses should be profitable to their shareholders but should also offer quality products and at fair prices to their customers. Businesses should make fair returns on the investments delegated to the organizations by their investors; they should also gratify their customers with commodities and services that are of actual value (Lantos 2001, pg. 595). The organizations should create wealth, with capabilities of amassing to non-profit institutions, which own shares of publicly held organizations and assist lifting the poor out of poverty when their wages improve.
They should also encourage innovation and diversify their economic benefits in order to shield against the tyranny of the majority. The firms should also develop and maintain new jobs for society. Businesses have been depended upon as main pillars of the economy in the provision of employment, income, raw materials, technological improvements, and payment of taxes. Moreover, people have depended on business organizations for the generation of investment capital, which assists in economic growth. This is normally acceptable for as long as the businesses confine their activities within the law (Lantos 2001, pg.
595). For example, in an article “ The Wealth of Nations, ” there is a framework for a firm in the current world as well as it is with the society (Carroll 1979, pg. 500). The article suggested that while capitalism encourages the pursuit of efficiency and gains, there is the creation of greater wealth compared to any other economic system. The manager’ s role is to act as a trustee to the shareholders or to a principal, being their steward in efficiently managing the assets of an organization (Litz 1996, pg.
1355). Organizations have to recognize certain values connected with the economic perspectives comprising avoiding or minimizing business risks because of better business intelligence and developing and increasing business opportunities, reputation, and brand value.
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