Corporate Social Responsibility
Western International University
Ethical Leadership Corp Social
June 23, 2011
Corporate social responsibility is becoming an increasingly important activity to business nationally and internationally. But “What is corporate social responsibility?” Corporate social responsibility is about how companies manage the business processes to produce an overall positive impact on society. According to Lord Holme and Richard Watts “Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and ...view middle of the document...
However this money and time should be his own, not the money or time of his employer and this is his own social responsibilities, not of the business. If a corporate executive starts donating the money then he is reducing the money of stock holders and it would be unethical if he does not act in the best interest of his shareholders.
Edelman, an American firm, had surveyed people with university degrees who are in the top quarter of wage-earners in their particular age groups and countries and asked them, what they think of Milton Friedman’s famous assertion that “the social responsibility of business is to increase its profits.” The result shows that United Arab has 84% of the people agreeing with Friedman, Japan comes second, Sweden comes next with 60% of the people agreeing with Friedman, United States has 56%, and Britain scores 43% (“The Economist,” 2011). It is very surprising that more than 50% of the people agree with Friedman’s statement and his theory.
Since the late 1990’s, corporate social responsibility has gained increasing attention in the business community, and in the society. A strong corporate social program is an essential element in achieving good business practices and effective leadership. It is very important to know that companies are part of the society and so their impact on economic, social and environment directly affects their relationships with stakeholders, in particular investors, employees, customers, government, and communities. Employees like to work for an organization they are proud of. The benefit the companies receive by donating to charities, spending on environment, or spending on other issues of the society is far greater than the dollar amount...