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The Concept of Corporate Social Responsibility
Corporate social responsibility and its relation to business can be viewed as the voluntary activities that a company engages in with the aim of ensuring that economic, environmental and social goals of the society are achieved besides profit making.
When a company carries out its functions in a manner that impacts the economic, environmental, and social aspects and in a transparent way in the society, they are in a position of succeeding since this encourages the element of shared values (Habel, Schons, Alavi, & Wieseke, 2016). This therefore points out to the fact that the mitigation of social, economic and environmental risk factors remains one of the essential ingredients in the success of different businesses.
Conflicts that Corporate Social Responsibility Creates For Corporations
It is essential to consider the fact that one of the conflicts that Corporate Social Responsibility (CRS) creates for corporations is in relation to corporates the chosen levels of the expenditures in running these programs that may tend to be greater than the elements that maximize a company’s value (Habel, et.al.2016). This therefore may prove to be negatively connoted since it has the capacity to decrease the value of a company’s shareholders. Additionally, these conflicts are bound to promote the element of social agendas that may also be viewed positively.
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Shareholders & Stakeholders Conflicts in a Corporation
It is essential to consider that the shareholders and stakeholders have different conflicts within a corporation. In consideration of the shareholder and stakeholder theories, it is vital to note that these two functions have the capacity to dictate what a corporates role has to be in CSR(Mishra, & Modi, 2016). The shareholder theory therefore holds that the shareholders need to advance funds to the company’s managers who are tasked with the responsibility of spending the funds as accorded by the shareholders.
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On the other hand, the stakeholder theory asserts that the interests of corporates stakeholders need to be considered even in the even that this has the capacity to reduce the profitability of a company. The conflict therefore arises in relation to the definition of roles and functions between the shareholders and the stakeholders (Mishra, & Modi, 2016). On the other hand, conflicts are also bound to rise when the needs of the stakeholders compromise the expectations of the shareholders.
It is essential to determine the fact that corporations have the capacity of being socially responsible considering the fact that this is an element that points out to their clients on how they are dedicated which goes along with the company’s reputation.
Business Practicing Corporate Social Responsibility
RELX Group is one of the company’s that offers CRS to its employees by offering them opportunities to develop in order to reach their full potential. Through this, the company is in a position to justify their expenditures in meeting these purposes (Mishra, & Modi, 2016). Through this trainings, it has been established that the lives of the people within the community are impacted, a factor that has urged this company’s commitment of this course.
References
Habel, J., Schons, L. M., Alavi, S., & Wieseke, J. (2016). Warm Glow or Extra Charge? The Ambivalent Effect of Corporate Social Responsibility Activities on Customers’ Perceived Price Fairness. Journal of Marketing, 80(1), 84-105. doi:10.1509/jm.14.0389
Mishra, S., & Modi, S. B. (2016). Corporate Social Responsibility and Shareholder Wealth: The Role of Marketing Capability. Journal of Marketing, 80(1), 26-46. doi:10.1509/jm.15.0013
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