The paper "Corporate Social Responsibility " is an outstanding example of management coursework. Corporate social responsibility refers to the voluntary business activities that go beyond the legal conformity and aims at enhancing the economic performance and contribution to the sustainable development of the environment and the community in which a business operates. World Business Council for Sustainable Development, (2004) Corporate social responsibility may seem to be an attractive business at the policy level but at the matter-of-fact level, it has been very challenging and taxing. As much as there exists a considerable increase of information, best practices and awards and tools, it has proved that it continues to be challenging especially to the shareholders in the society.
It is complex in nature in terms of the costs incurred. The stakeholders usually have high expectations and unfeasible demands that are quite difficult to control and manage. Gloria J. (2003) It is well known that business is an important social factor and ingredient which involves the provision of employment, the production of products and services, building of roads, bridges and airports, provision of healthcare, education, security.
It also participates in the extraction and the use of the resource by discharging pollutants and charitable donations. This makes it an important agent in influencing society. This is a noble task that is more than many governments’ policies. Therefore for a nation to develop and the welfare of its citizens to be improved, then it is the responsibility of the business to ensure that they participate in some of the above activities in the societies. Without doing this, the advancement of the community through corporate social responsibility will not be achieved.
Then the blame from the shareholders and the society will lie on the business top management. It is their duty to disseminate these services to society to help them advance and also benefit the company in terms of creating more market for its products. Corporate social responsibility provides a framework for providing a stronger link between the employees and the business, shareholders and the local community as well as providing a blueprint of the events and activities that can help reduce the operational impact of the business on the local environment.
This cannot ensure environmental and social improvement in the segregation of Governments accountability. Taking into account the formal policy and aims that corporate social responsibility has on the shareholders, this paper aims at giving the arguments that support the notion that business remains responsible to their shareholders, not some “ abstract” society. CSR facilitates the minimization of risk factors, for instance, purchasing decisions, and increasing competitiveness. It has been facilitated by the examination, anticipation and the strategic management of the possible high-risk zones, specifically those relating to the brand name of their products.
Therefore their strategies will, in the end, determine the output of the business hence the shareholders are not liable to the formulation of strategies for the sake of cooperate social relation. The daily undertakings of the business are communicated to the shareholders of the company. These communications take place in four areas, the market place, the workplace, the community and the environment. It facilitates the formal communications of values, ethics, believes through the national, international or the locally developed channels and company activities. Failure to communicate with the shareholders about the occurrences in the market will lead to the business full responsibility at the end of the day.
Very few businesses operate in a black or pasty structure, where they are either totally righteous or entirely with no liberation, the efficient business leaders do not have time for social responsibilities as no virtue will be rewarded. As the top companies with regard to their community responsibilities are triumphant companies. Either a corporation firm engages in the communal responsibilities or not the key factor to success is the skills of execution and that is the duty of the top management of the company, not the society.
(Mallen B. 2004)