DQ1:What are the various understandings of the Business Case for CSR? Is this a good way of thinking about CSR? If yes, why? If no, why not?
Corporate Social Responsibility (CSR) can be defined as the policy or the practice that can be run by the business to beneficial the society. The different between social expectation of business performance and business actual social performance is getting bigger since 1960s (Carroll & Buchholtz 2008,16) , hence the CSR is promoted to solve the social problem. According to Milton Friedman, the theory of â€œThe business of business is businessâ€, all the money spent on the social and environmental is conflict with the nature of business. But the pressure and the social expectation of business performance is getting bigger and people start to believe that the business is responsible to the society and ...view middle of the document...
There are many different ways to outline the advantages of CSR. Generally, it include good CSR is interrelated to good financial performance (Banerjee 2008,62).The business can be improve financial performance and productivity though develop an operational efficiency strategy which is highly recommend by CSR. Society will support toward the business that have better CSR which will also increase the sales of the business. Other than that a good CSR performance will also improved the relationship between business and society, so the society are more willing to invest to the business which lead to easy access of capital. Moreover, the business will also have a good reputation and better company image though good CSR performance. But if the business is lack of CSR performance it will be revoked by the public (Banerjee 2008,26), which means the society will no longer support the business(e.g. boycoot). The expectation and reaction of society will affect the profitability and financial performance of the business, so the business will start to do some alternatives towards CSR and develop new business strategic which intergraded with CSR, and they will also realize that all of this is voluntary and not legally enforceable(Banerjee 2008,26).\
In conclusion, CSR is generated from the society expectation and the reaction of society will pressure the business make alternative toward it. Although CSR is conflict with the nature of business and look like it is more beneficial to the society, it also provide many positive impact as a return to the business.CSR is costly to the business in financial term but the positive impact and benefic that return to the business much more than the cost.
Banerjee, B. S. 2008.Â Corporate social responsibility: The good, the bad and the ugly. Critical Sociology 34 (1): 51-79.
Carroll A.B. & Buchholtz, A.K. 2008. Business and Society. Ethics and Stakeholder Management. Mason: South Western Cengage Learning.