Does the assumption and implementation of corporate social Essay

Does the assumption and implementation of corporate social responsibility makes businesses more successful - Essay Example It encompasses two broad views in general. The first one is that the companies share the wealth they create with either the society they operate in or other under privileged societies. The other is managing their activities in a more ethically and morally responsible way. It is the voluntary exceeding of the society's expectations of the business and it is agreed that it is majorly affected by how the company manages its core businesses. (Baker) Corporate Social responsibility is extremely important to a company's business. According to a survey by the Economist Intelligence Unit, Corporate responsibility is affecting the relationship between companies and their various stakeholders, such as investors, customers, vendors, suppliers, employees, communities and governments. (Doebele, 2005) Underlying principles The Corporate responsibility trend is being driven by a large number of factors. Companies which do not engage in social responsibility might be viewed as unethical as peoples t rust in large organizations is already waning. The rise in the corporate governance movement, globalization of businesses and the competition presented by rivals all contribute to a firms increasing interest in corporate responsibility. The benefits of corporate responsibility may prove never ending for an organization. ... They include environmental management, issues management and stake holder's management. There will be times when two or more of these management areas will be integrated to form one areas of concern. Foreg in 1994 BHP Billton's shareholders were concerned about the company causing environmental damage in Papua New Guinea. (Gail Thomas, 2006) There have been multiple arguments in favor of supporting corporate social responsibilities for businesses. It has been said that practicing a business enables many things in the society and businesses are dependent upon a healthy, well-developed and economically sound society for its proper functioning. Improved quality of life for employees and citizens should be one of the top priority for all ethical businesses and this is only fulfilled if they practice giving back to the society or caring capitalism as Niall Fitzgerland, chairman Unilever calls it. Since the main responsibility that the company owes is towards itself, the company has to ens ure that fulfilling responsibility is both beneficial to itself and the society, but ensures that the company survives in the long run. People in favor of corporate social responsibility clearly state that CSR enhances the view of the company in the eyes of the customers and generates a loyal customer base. Others state that fulfilling CSR also provides unmatched promotion and publicity for the company which is again very necessary for the success of the company. Last but not the least practicing social responsibility raises the morale and self esteem of the employees of the company and they feel good about the contributions and are more likely to work efficiently and develop into diligent workers. Boyle and Boguslaw (Boyle, 2007,