Corporate Social Responsibilities Continuing Commitment To Business Commerce Essay


When we hear a businessman talking clearly about the social responsibilities of business it makes me remind of the Frenchman at the age of 70 that he had been speaking prose all his life. Majority businessman believed that adopting the concept of` corporate social `responsibility ' would help them defending their enterprise , they claim that their business is not only concerned merely with profit but also `social' activities and also that the business have 1social conscience' and takes all such responsibilities seriously and amend on them duly. All these responsibilities includes avoiding pollution, eliminating discrimination, providing employment and other aspects which are related to the social responsibilities of the business. Frequently such question arise that ,What does it mean by social responsibilities of `business' Only individual have responsibilities? Answer to this question is a business organisation is also a artificial person so it also has its own responsibilities as a artificial person. The first step of such responsibilities it to examine and analysis the social responsibilities of the business and ask precisely what it implies for whom.

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We assume that, individuals who are to be responsible are called businessman, which includes proprietors or corporate executives. Almost all the major corporate responsibilities decisions are taken an implemented by such person of the business firm. These corporate executive act as an employee of the owner of the company and work on the social responsibilities of the firm. But in some cases this may differ because these corporate individuals have their own decisions and objectives for eg: hospitals or a school. The managers of such firms may not earn huge amount of profits as their primary objective is to render services to their consumer in form of knowledge, guidance, treatment etc.

Corporate social responsibilities also refers to contributing globalisation, latest technologies and other such economic growth aspects to the people of the societies for social and economic development of the country. And at the same time they also deals with the financial crisis, poverty, inequality of the society. It contributes considerably to the obstacles and difficulties faced by a developing country, it gives rise to humanity in the country. Business organisation has to deal with social responsibilities which is not only beneficial to it firm or employees but it must also indulge in activities which helps in upraisal of society and economy of the country. UN, "Globalisation and its Impact on the Full Enjoyment of Human Rights" (August 2000). CSR has a multiple relationship with the consumer, stakeholders, other corporate, employees and the society it has a focus on labour and environment issues. Corporates are the key or the role players of CSR as it is their effort to imply decisions on various aspects of CSR.

The History of Corporate Social Responsibility:

The 1920s discussions about the social responsibilities of business had evolved into what recognized the beginnings of the "modern" CSR movement. In 1929, the Dean of Harvard Business School, Wallace B. Donham, commented within an address delivered at North Western University:' Business started long centuries before the dawn of history, but business as we now know it is new - new in its broadening scope, new in its social significance. Business has not learned how to handle these changes, nor does it recognize  the magnitude of its responsibilities for the future of civilization.

'In the 1960 and 1970 the civil rights movement started, consumerism and environmentalism had affected society's expectation of business. Big business was being criticized as they were too powerful. They practiced antisocial and anticompetitive practices which exploited the common man. Millions of people started gaining jobs whom were paid more above, than their expectations .This raised the standard of living of common which  greatly improved. Large organization started developing and acquired great power due to which some of them became the richest and powerful ruling men. The companies became rich by exploiting workers. The large companies had a philosophy of natural selection and making survival of fittest people in the business and social policy during that reign. This philosophy led to the cut down, even led to brutal , competitive strategies of rich people did not allow to grow a successful corporation of employees.

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During beginning of the twentieth century the exploited workers started revolting against the large corporations which gained momentum. Laws and regulations were amended in the large corporations to protect employees from the exploitation from Big business tycoons , consumers ,and society at large. The labour movement also called for social responsiveness on part of business .Due to economic, legal ethical and discretionary expectations ,this gave a rise to Concept of Corporate Social Responsibility. Corporate social responsibility proved to be difficult task when introduced because developing social responsibility takes time.

The following are the ways in which company can be socially responsible:

1. Fund staff for voluntary work

The must have a separate fund staff for every voluntary practices done by the staff or the employees of the firm during the financial year. This helps in motivating the staff and enhance more social responsibilities and activities, this way also help the firm to reduce the last moment burden of expenses done on social responsibilities. The staff members by this way enjoys extra income and wages. Companies also get involve in many other programmes except the above mentioned such as food services, medical services etc.

2 .Technological help to other corporate firms

The companies can also help other firms by helping them using different technology which exists in the concerned firm. This can help the corresponding firm to increase their business by adopting new technology. This can also in term of donating old PC's, machinery, and other technical instruments to small and developing firms this can enhance their moral and will lead to further success in their firm.

Eg: Contract caterer BaxterStorey donates its old PCs to Computer Aid International.

3. Looking after the health of the employees

It is the duty and primary responsibility of the company to look after the health of the employees working in the firm. By taking appropriate measures like health insurance, medical campaign, periodical medical test and so on. The firm should ensure that the staff eats well and live healthily as these are the obvious in both business and CSR terms.

Eg: Aramark's Business Action on Health team is part of a Business in the communit (BITC) campaign. This campaign is to focus on business benefits which rises through better health at work.

It was also been distributed among the companies listed in FTSE 100 as a part of the sub group developing healthy eating toolkit .

4. Protection of wildlife

The company can indulge in many initiatives to secure and preserve the wildlife in the country this can help the firm to take part equally in the ecological factor. These measure can be taken by avoiding pollution, growing more trees, taking part in NGO's for animal rights etc. It may not be the major part of the CSR but v can say that it is very essential element of the CSR.

Eg; `The Langdale Hotel and Timeshare complex in Cumbria, is maintaining bird feeding stations, controlling grey squirrels and introducing red squirrel feeders, and developing a bio-diversity management plan with Lancaster University'

5. Contribute sponsorship for education and other social purpose

There are many events and campaign that wont be possible if the industries or the firm won't support them. These events includes all the social activities in favour f the society such as public gardens, free medical camps, etc. The industries can also contribute to youths for their further studies, this encourages the teens to study well and contribute their knowledge in the social and economic benefits of the nation.

6. Relationship with local producer

Increase of large scale industrial sector in food services recognises that they can play a vital role in helping to maintain our countryside by supporting local farmers findings products from sustainable sources and further looking to reduce environmental impact.

Eg: Sodexo Healthcare, for instance, has worked with NHS Shetland since 1992 and, as one of the largest employers on the Shetland Islands, sources as much as possible locally, buying from the local baker, fishmonger and dairy. In its Scottish Government contracts, 52% of meat sourced by Sodexo is Scottish.

7. Recycle office appliances and materials

The corporate firms can recycle or reuse office day to day appliances such as furniture, PC's, they can make use of disposable item such as cup, glass, plates, and other paper items. This helps the firm to participate in social ecological factors of the environment. The firm should train their staff to get involve in such activities.

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Eg: BaxterStorey has created a printing hub to save papers used in printer in its head office, it has also decreased the umber of printers by 50%, in spite of office staffing grown by 130%.

Corporate social responsibility can be simply termed as an interaction with the society and its responsibility towards society in general and corporate social responsibility demands that it should be achieved through positive practices and in terms of general welfare. Corporate social responsibility should have its impact on community on its customer and on d environment.

The following are the benefits of corporate social responsibility:

The first important benefit is d sustainability , a company which  takes a  share of responsibility towards the society should have a long term business plan   as it creates an institution for d csr as it has the lasting impact on d society and Making a long-range plan will require that the entrepreneur's product benefits society.

second most imp id customer, employee n shareholder satisfaction the entrepreneur committed to the social responsibility should meet the customers need and benefits and should supply the quality product at an reasonable rate and it can also employ  a workforce  so that there is an greater efficiency in the business and shareholders are also benefited as they can also earn good profit. 


The  investors being very careful , nw has learned that ethical social responsible companies make a huge profit and business reputation also thus they invest in these kind of business and make a huge profit .

The most significant effect of corporate social repnsibility is that it creates a brand image to the public as well as to the other business entrepreneurs. The company then is known fir its ethical and responsible behavior and it advertise itself in these competitetive world thus it creayes a positive perception of the company and also a good brand image

Nowadays investor are becoming more cautious in terms of investing funds  they are more interested in the csr policies of the company as they help in saving human rights and environment protection as well as they have good public image in the society as well as good brand name thus it attracts the investor to invest the money  and it creates an access to a large capital base companies

It helps in to create and maintain a good business relation with the local authorities which helps in to run there business smoothly

The most important benefit of csr is that it helps in managing risk as a A socially responsible company monitors and takes responsibility for its own also has a greates impact on the environment and it deals with the community employees and with shareholders fairly . it contributes a great attribute to the society . thus it creates a positive impact towards the government , public and to the media also as all these socially  responsible things are genuinely happening , thus a company builds a good reputation of its own  which will help it to carry on  its business even in an bad condition (eg environmental accident , scandal etc ) thus a good reputation can help to managing risk also.

It also helps in to comply with the regulatory requirements and to ensure that the business is free from any frauds  and it is ethically running it

Economic cost of CSR

There are variety of  factors that influences  the economic Corporate social responsibility which are as follows:

1.maganeraial incentive,

2. with monitoring constraints

3.Organizational structure ,culture

The csr depends upon the managers for the firms incentives for their constraints ,preferences ethical beliefs, contracts ,goals. The companies which make most profit likely to get engaged in CSR activities. The direct costs of csr are resulted to the loss of consumer surplus from the firms which produce less output at higher cost therefore at a higher prices. Csr activities  are affected by the nature of industry, firm size, geographical location of the industry. There is a choice for corporate  social  responsibility which affected the firms ability to sacrifice profits. Us law has been consistent with the share holder, but as long the managers claim for future profitability. Corporate social responsibility has been arising in developing country. Csr could be leading in gaining significant in net social welfare. The firms that have participated in costly csr needs to increase prices. They have to reduce wages and other costs. This will make csr to accept smaller profits , pay the smaller dividends for the company. The economic survival fits that firms only that engage themselves in unstainanable Csr which find themselves to push out from business. In absence of government policies , csr activities has lead to positive net social benefits .The benefits that include direct welfare gains towards individuals..The measured effects on profitability have been doing more with advertising and other factors than with Csr. The two approaches are variety of criteria, includes social welfare and legal, with social considerations too. There is a little relationship between csr and profitability ha been consistent with the a market equilibrium in the firms in social responsible. The most firms says that Csr means  pays for itself.

Some of the examples of Corporate Social responsible companies:


Nike has recently become one of the companies which are targeting a wide range of campaigns NGO's and journalist as a symbol representing the business in society. In Nike's case, the issues which cover are human rights and situation for the workers in factory of developing countries. Nike has considerably gained positive response, through reporting by corporate website. At present Nike is more focused on its corporate social responsibilities, by improving environment of it contracted factories, focusing on carbon neutrality, availability of sports products to youth population across the globe.