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Caterpillar Inc.: Corporate Social Responsibility
Some argue that the role of business is simply to make money. Others argue that this statement is wrong and that the components of corporate social responsibility are just as important to a business as it is to create shareholder value. (Davis, 2005, 105) The components of corporate social responsibility include looking after the community and environment as well as other things such as the helping out the stakeholders of the company. As you will soon find out a quality social performance will likely have positive effects on the company, while poor social performance will likely have negative effects. Caterpillar Inc. like most companies does have problems with their history of CSR but also has a very good record in other areas.
Caterpillar Inc.: Poor Social Performance
Caterpillar Inc. being a machinery company constantly has environmental guidelines it must follow. If they do not follow these guidelines there is likely to be consequences. One environmental headline Caterpillar Inc. would rather forget was on August 1st, 2000, when it was awarded by the not-for –profit organization Clean Air Trust, the Clean Air Villain of the Month. It was said the company appeared to be deliberately avoiding the legal agreement to clean up their dirty engines. Only 13 months earlier the Justice Department and the State of California had signed off an agreement with Caterpillar Inc. The agreement with the company was made after an investigation found that more than one million heavy-duty engines emitted illegal amounts. Devices in the machines could go over their pre-sale emission tests and turn off all in the process of highway driving. The machines could emit as much as three times the allowable level of nitrogen oxide. (Clean Air Villain…, 2000)
Caterpillar Inc. was under scrutiny again in 2003, for another violation of

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