CSR: A Managerial Tool for Companies to Build Reputation & Advantage - Essay Sample

Introduction

Corporate social responsibility has been an area of interest for researchers for many years. Corporate social responsibility (CSR) refers to a managerial tool which is used by companies to build its reputation as well as the competitive advantage. According to Salanta and Popa CSR describes the various approach in which firms select to manage their companies and to conduct their efforts in the creation of a positive and anticipated impression on the community (Popa and Salanta, 2014). Corporate social responsibility can be regarded as the extension of efforts of business in maximizing the wealth of shareholders while following the principal regulations of the society.

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Currently, CSR can be seen as attempts by the organization to attain equilibrium between social, economic as well as environmental necessities minus foregoing the desires of the investors. It is the responsibility of the firm to serve people at its best level. CSR entails all the duties investments have to the community, which exceeds the maximizing wealth of shareholders.

The disadvantages of CSR include lack of information, or skilled human resources for handling CSR, lack of dependable legal regulations regarding social actions. Additionally, the cost incurred when investing in various social programs hinders the realization of maximum profit.

Describe corporate social irresponsibility.

Corporate social irresponsibility investigates the wrongful and damaging organizations choices which managers might decide. Corporate social irresponsibility (CSI) refers to the failure of the business in meeting the expectation of the society, which include social injustices, environmental degradation, bribery as well as corruption. Additionally, evading to pay taxes, price-fixing, and criminal fraud. CSI happens when the strategic management of stakeholders do not remain neutrally responsible. In other words, CSI refers to the acts of discrimination in places of work, violating human rights, provision of false information about a product to the clients as well as maltreating employees. Gambler, Unilever, Enron as well as Procter are some of the companies that have ever been associated with CSI.

Managerial unethical behaviour is the primary source of corporate social irresponsibility; hence the employees tend to copy what the leaders are doing. There are several ways in which CSI can be reduced, such as reducing opportunities for decisions made by managers who usually make imprudent choices by giving them duties which have regular proper behaviours. Secondly, public opinion to share data about the misconduct and take part in penalizing and acts of CSI. This opinions can be spread through the use of the internet and social media websites.

Where do you stand on the issue of CSR v CSI? Do corporations have a right to ignore their responsibility to some stakeholders to add to the short-term bottom?

In my opinion, I stand for CSR which main focus is providing and attending to the needs of the society but not maximizing the wealth of the shareholders. The employees under this system are highly valued as compared to CSI, where employees are exploited highly some of them working under harsh conditions and being paid under wage. The desire of SCR is creating a desirable impact on society through ways such as paying taxes, protecting the environment while conducting their businesses. CSR is usually associated with responsible business conduct demonstrated in all fields of the firm.

Reference

Popa, M., & Salanta, I. (2014). Corporate social responsibility versus corporate social irresponsibility. Management & Marketing, 9(2), 137.Retrieved from http://www.managementmarketing.ro/pdf/articole/446.pdf