Corporate Social Responsibility

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Corporate Social ResponsibilityIn recent years, corporate social responsibility (CSR) has become a key business process formany organizations. It goes beyond the traditional view of profit maximization to includebroader societal concerns. Using Disney’s CSR initiatives from 2010-2011 as a case study,evaluate the impact of CSR on long-term business performance. In your answer, discuss both thepositive and negative aspects of CSR, the role of ethical decision-making in CSR strategies, andhow CSR can affect the company’s reputation and its relationship with stakeholders.Word Count Requirement: 1500-2000 words

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IntroductionThe classical view of management’s only social responsibility is to maximize profits (create afinancial return) by operating the business in the best interests of the stockholders (owners of thecorporation) and expending the firm’s resources on doing “social good” unjustifiably increasescosts that lower profits to the owners and raises prices to consumers. The socioeconomic view ofmanagement’s social responsibility goes beyond making profits to include protecting andimproving society’s welfare. Corporations are not independent entities responsible only tostockholders.Firms have a moral responsibility to larger society to become involved in social,legal, and political issues.Focus is on “To do the right thing”.The obligation of a business is to meet its economic and legal responsibilities and nothing more.The capacity of a firm to adapt is to change societal conditions through the practical decisions ofits managers in responding to important social needs. It is a firm’s obligations as a moral agentextends beyond its legal and economic obligations, to the pursuit of long-term goals that aregood for society.The big question is that does social responsibility pay? Studies appear to show a positiverelationship between social involvement and the economic performance of firms. There aredifficulties in defining and measuring “social responsibility” and “economic performance raiseissues of validity and causation in the studies. Mutual funds using social screening in investmentdecisions slightly outperformed other mutual funds. A general conclusion is that a firm’s socialactions do not harm its long-term performance.

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The code of Ethics is aformal statement of an organization’s primary values and the ethical rulesit expects its employees to follow.It is to be a dependable organizational citizen, don’t doanything unlawful or improper that will harm the organizationand be good to customers.Following are the effective ways to use code of ethics:-•Develop a code of ethics as a guide in handling ethical dilemmas in decision making.•Communicate the code regularly to all employees.•Have all levels of management continually reaffirm the importance of the ethics code andthe organization’s commitment to the code.•Publicly reprimand and consistently discipline those who break the code.Corporate Social ResponsibilityOne of the increasing concerns for the managers and the media is what social responsibilities arehandled by an organization today. This has become increasingly important in today’s timebecause this gives the picture of how the business is perceived other than its products andservices. This is something which an organization is expected to be giving back to the society inreturn. However, many businesses take it as a negative thing and consider more as a liability thanas a must to do act.Today many businesses are known for their generous giving’s, like associations with the charityfor the purpose of funding, encouraging the employees to perform voluntary work for the NGOs.This increases the brand value of the businesses. But there are many clauses which a company

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should take concern for in terms of social responsibility. For example during the downturn ofrecession 2008, almost all the companies have been doing layoffs of their employees. However,companies which did not do so were placed at much high rank in terms of social credibility. Alsoit is to be expected of the businesses that the services and the products they give in the societyshould be productive for the society as well as it helps the society to nurture. Many of themeasures are taken by the government of all around the world itself for such activities. Forexample regulatory authorities like United States Environmental Protection Agency (EPA) haveissuedguidelinesfortheemissionofthedangerouspollutantsandthusregulatethem.Companies should also involve in Corporate Social Responsibility (CSR) so that the involvementof government in the business would be minimal.Following corporate social responsibility also provide opportunity to the firm to increases theeconomic aims, sustainable growth and human progress. A company can change its philosophyregarding corporate social responsibility and utilize this opportunity. These social and ethicalresponsibilities will provide a path of success to the group, which can be applied on theinternational root as a global player by building their brand image.People do their best with abalance of work and family life.Organizations perform best in healthy communities,gain byrespecting the natural environment,must be managed and led for long-term successand theymust protect their reputations.There are various arguments against CSR initiatives like reduced business profits, higherbusiness costs, dilution of business purpose, too much social power for businessand lack ofpublic accountability. But there are also arguments for CSR initiatives like adding long-runprofits, improving public image, avoiding more government regulation and Businesses havingresources and ethical obligation

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