...Social Responsibility Views on Corporate Social Responsibility Abstract This dissertation examines R. Edward Freeman and Milton Freidman perspectives surrounding corporate social responsibility by summarizing their respective articles titled: “Stakeholder Theory and The Corporate Objective Revisited” and “The Social Responsibility of Business is to Increase its Profits”. By examining their articles, I will provide a personal opinion of which of their economic models should be the leading model when it comes to business and corporate social responsibility. Summary of Articles Author R. Edward Freeman’s article “Stakeholder Theory and The Corporate Objective Revisited,” emphasized a response to a piece put out by Sundaram and Inkpen titled “The Corporate Objective Revisited” by clarifying misconceptions about stakeholder theory and concluding that truth and freedom are best served by seeing business and ethics as connected (Freeman, Wicks, & Parmar, 2004). Freeman supports the above statement by providing the following three main critiques: 1) the mischaracterization of stakeholder theory; 2) the primacy of creating value for stakeholders, and; 3) the real issues of economic and political freedom (Freeman, Wicks, & Parmar, 2004). In response to social responsibility, Freeman clarifies that stakeholder theory claims that no matter what the ultimate mission of the corporations or any form of business activity, managers and owners must take into account the legitimate...
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...Part A Overall, Company Q has a very negative attitude toward social responsibility. Part of social responsibility is having a positive interaction between a company and the community in which it operates. Company A did not have a positive interaction in the city because they closed several of their stores. A socially responsible company is aware of, and positively acts on the concerns of its consumers and the environment. The company does not seem very disturbed with the concerns and the requests of its customers. It took them years to respond to the customers’ requests for healthier options and organic products. When the store finally did bring in these much requested food items, they were very limited and were very expensive. A socially responsible company cares about the way that it influences and affects the people it deals with on a daily bases. In the case of Company Q being asked to donate day-old food to a local food bank, it denied their request. A socially responsible company is not completely concerned with maximizing their profits, but they understand that the people they serve are just as important as making a profit. The company thought that they would lose revenue due to the possibility that their employees might steal food under the guise of them donating it, and therefore the company decided to not donate any food to the food bank. Part B When a company improves its social responsibility, it will not only benefit the community and the people it interacts...
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...GT VALVETRAIN SOCIAL RESPONSIBILITY Environmental Considerations GT Valvetrain has had an environmental philosophy for many years and has made this the number one priority in purchasing, product development, and in the supply and disposal of materials. We believe that environmental protection management also helps to secure the future success of the company. Many of our manufacturing facilities are ISO-14001 and have been validated according to strict environmental regulations. GT Valvetrain continually practices manufacturing of its components with sustainable environmental practices. One thing that GT Valvetrain can do to help add to the company’s environmental responsibility policy would be adopt a hazardous material board. This board would consist of employees that analyze all new chemicals and substances to be used in future manufacturing processes. The board will review the chemicals and substances to evaluate how harmful they are to the environment and suggest alternatives that are more environmentally friendly and support the company’s environmental policy this is already in place. In addition, GT Valvetrain could invest in solar panels to offset some of the company’s carbon footprint. Large electricity consumption is inherent with manufacturing automotive components therefore GT Valvetrain could install solar panels on the rooftop of the plant to manufacturer some of its large amount of needed electricity. In making this investment into clean renewable energy...
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...What is social responsibility? What exactly is being socially responsible? According to an article entitled “Social Responsibility”, being socially responsible simply means that “people and organization must behave ethically and with sensitivity toward social, cultural, economic and environmental issues.” Social responsibility should be measured by how helpful people and organization are to a society’s daily life. For example, wherever it is that you go, whether you are in college, in school, or at work, the most important key that will lead you to a successful life is being respectful to others. If your intent is to show respect to the people around you, then they will show you their respect and treat you with kindness. In addition, to explain the question of how important social responsibility is to the America society America has a significant international population. Many people that live in America are from a different environment, culture and lifestyle. They have left their country, and their family to travel across the oceans to seek a better future; they not only bring their intellect to the country, but also their cultures and knowledge to help develop the country. Therefore, it is the people’s responsibility to treat each other with respect and kindness. To live in harmony with others is to improve and to create a better community. Conversely, if a person is living a life only to judge others’ backgrounds, then that person doesn’t want to cooperate with other people...
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...Company Q: Social Responsibility Social responsibility is critical to an organization’s future. An organization should focus on having a positive image and reduce any negative impacts on stakeholders. A socially responsible company will maintain a good reputation with all of their stakeholders. Social responsibility follows several guidelines; ensuring profitability, maintains a legal structure, abides by ethical standards, and engages in philanthropy. Company Q does not engage in a very positive social responsibility. The company had two of their grocery stores located in areas with high crime rates. Because of this, they eventually had to close down both of the stores, resulting in a decrease in profits and disappointed loyal customers in the area. Company Q also lost out on profits when they decided to put a limited amount of their new healthy and organic items on the shelves. Although the new items were high margin, they did not benefit the company because there was only a limited amount being offered to customers. As far as philanthropy, Company Q does not provide donations to the local food bank in order to avoid possible fraud or theft from their employees, causing them to lose out on a good public image. If fraud or theft occurs in the company, it goes against the legal structure that the company is required to have. Based on the fact that the company is worried about legal issues which prevent them from making donations, it is clear that the company lacks ethical...
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...CSR and globalization[1] Corporate social responsibility is at least in its name and formal recognition a relatively recent phenomenon. Yet, owners and managers of firms have engaged in activities that we would now consider CSR almost from the beginning of the industrial revolution (Davis, Whitman and Zald, 2006). But, until the 1990s, CSR was generally limited to corporate philanthropy. It is from the early 1990s that enlarged concepts and practices of CSR have come to the fore. What drove these radical changes in the conception and implementation of CSR? Scherer and Palazzo (2007) claim that, in a globalized world, it is necessary a shift toward a new politically enlarged concept of CSR. In fact, globalization is weakening the power of (national) political authorities to regulate the activities of corporations that globally expand their operations: for instance, globalization forces national governments into a race to the bottom in order to win the competition with other countries for attracting corporate investments. Thus, they reason that corporations should be understood as both economic and political actors. Davis, Whitman and Zald (2006) claim that, in addition to weak national boundaries that separate domestic from foreign companies, another crucial difference of the global competitive environment of the 21st century is the weak distinction between activities and transactions occurring inside as opposed to outside a corporate entity: while companies are moving part...
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...Social Responsibility The concept of social responsibility had been in existence in the corporate world. Businesses and firms have a responsibility to the society in which they prevail and operate. It is their obligation to give back to the community where they are sustained. Such giving back or supporting the community in some form is the social responsibility action of the enterprise. The giving back to the community may be as financial support, promoting the community through opportunities to develop, making the society safer through eco-friendly strategies and keeping the business profitably sustained in the community so that the society ultimately benefit from the business one way or another. The concept of social responsibility has changed a lot in recent years, expanding beyond an act of charity to the society. It is now the consideration of people, planet and profit. People are now concerned not only with the product but also with the methods of production. How the manufacturing practices of a firm in bringing out a consumer product affect the planet and people is of significance for today’s society. That has become the focus of social responsibility of manufacturers, businesses and other corporations. How the society as a whole is benefited or affected, is looked upon carefully. Business enterprises and manufacturing companies can longer act in vacuum any more. Their actions in a multitude of ways affect the society and the impact whether positive or negative is weighed...
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...According to Social Responsibility (2009), social responsibility is the idea that businesses should not function amorally, but instead should contribute to the welfare of their communities. In the instance of Company Q, I do not believe that the grocery store chain is being socially responsible. There are several aspects that could be improved upon. These aspects include: offering more health conscience and organic merchandise, donating items to local food banks and opening stores in lower income areas. Company Q should offer more healthy and organic options for the customers who want to purchase them. These options would be profitable for the chain. More importantly, these options would allow customers to choose merchandise that is better for themselves and the environment. Increasing healthy products available would increase the number of healthy patrons. This is a perfect example of social responsibility. Company Q should donate food to the local food bank. The items requested were about to be thrown out anyway; instead of being wasteful, the store should give the merchandise to those in need. The company is concerned with the possibility of theft of the items, but if the store is going to throw them in the trash what does it matter? By donating food items to local food banks Company Q is showing that its management cares about the local economy and community. Company Q should open more stores in low income communities. If the chain were to do this, the local...
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...In evaluating the current social responsibility attitude of the small local grocery store chain, Company Q, it is apparent that they have taken the stance of a shareholder model of corporate governance, as opposed to the stakeholder model. This evaluation is based on their focus of maximizing capital for its investors/owners. This type of orientation drives their decisions toward the best interests of the investors, not of the community or focus of social responsibility. Being socially responsible means that people and organizations behave ethically and with sensitivity toward social, cultural, economic, and environmental issues. Striving for social responsibility helps people, organizations, and governments have a positive impact on development, business, and society with a positive contribution to bottom-line results.("What Is Social Responsibility," n.d., para. 1) Company Q's actions of closing two stores in higher-crime-rate areas because they consistently lost money, as well as denying the request from the local food bank to donate their day-old products to help feed needy families, citing the concern of lost revenue from possible fraud and potential stealing from employees, support the evaluation of Company Q as being socially irresponsible. Closing two stores in the higher-crime areas could possibly have a more dramatic and negative effect on the community by appearing that Company Q has abandoned that section of the community for a safer, more profitable location...
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...Based on the pyramid of corporate social responsibility the levels go in order of economic responsibilities, legal responsibilities, ethical responsibilities, and finally philanthropic responsibilities. Economic responsibilities is the base of what businesses are made for. The number one goal of a company is to make profit. Without initially making profit, everything else in the pyramid is invalid. After economic responsibilities are established, legal responsibilities come next. This means that the business must be following the laws and regulations. This is important as well because if the business does not do this then they will no longer have a business. This responsibility may be equally as important as their economic responsibility. Next comes ethical responsibilities. Entrepreneurs are expected to run their businesses with a code of ethics. Legal responsibilities and ethical responsibilities also go hand in hand because laws and regulations from federal, state, and local government stems from ethics. This is the level of the pyramid where businesses run into a lot of gray area. Sometimes to be even more profitable, a business make have to make unethical decisions. Lastly on top of the pyramid is philanthropic responsibilities. This is on top of the pyramid because it is not mandated for businesses to be good citizens to society but highly recommended. I believe social responsibility is very important in today’s business environment because businesses have a certain...
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...Social Responsibility of Company Q Vincent Shank WGU University Social Responsibility of Company Q Company Q has a history of discounting the opinions of the communities in which they do business in favor of profits. While in the short term this seems to work for Company Q, eventually, there will be a tipping a point in which they have so alienated the community that they will not have a customer base in order to continue growing. Company Q’s current attitude toward its community is at least indifferent if not completely dismissive. In order to restore the communities faith in their business Company Q must find a way to operate, while still being profitable, in the lower income areas. Company Q must also find a way to offer the health conscious products the community craves and find a way to give back to the community. An extensive loss prevention program partnered with a training program about loss prevention and implementing an inventory control system would be able solve all the issues that Company Q currently sights for reasons that it does not give the community what it asks for and in turn help to change attitudes not only with in the company but with in the community. In order to operate stores in lower income areas, Company Q will need to offer products that consumers want and that they will be able to purchase a lower prices while still leaving a profit margin for Company Q. Implementing a loss prevention program to cut down on unnecessary losses. In order...
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...“Corporate social responsibility is for a corporation to perform ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals” (Social Responsibility, 2012). Environmental XYZ Gardening is a small business that provides gardening products and services to local customers on the southeast coast of the United States. XYZ Gardening strives to examine occasions to reduce their environmental impact while still delivering products and amenities to benefit their customers. XYZ Gardening has a small recycling program where customers can bring their empty potted plant trays back to the store so that they can be reused for future customers rather than being thrown away and going to the landfills. However, XYZ Gardening should consider having other recycling programs such as recycling cardboard and wood pallets that they use to store and deliver their larger products, such as large plants and planting containers. The benefits of recycling paper and cardboard is that recycling one ton of paper converts into the savings of 17 mature trees; 78.75 gallons of oil; 7,000 gallons of water; 41,000 Kilowatt hours of energy. Furthermore, air pollution is...
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...key to Wal-Mart. Wal-Mart is now trying to develop different ways in which it can markets itself as a socially responsible employer while offering a wide variety of opportunities to is potential candidates. In today’s job market, a company’s social responsibility has become come increasingly imperative. Much emphasis is put on how a company can demonstrates its concerns for the environment, human rights, community involvement, and ensuring that their employees are well taking care of in the United States and also overseas. In the eyes of consumers, prospective employees, and investors the company can display that it not only cares about increasing its profits, but also that its presence in the community is not in vain; even thought the ultimate goal is increase the bottom line “WE” the company want to get more involved with the people in the communities in which we are located. Our team believes that one of the key solutions into solving Wal-Mart’s issues should inquire Wal-Mart being more involved in the community, social responsibilities should be more established and this would definitely increase recruitment rates for Wal-Mart. Considering that Target is there largest competitor, it is because of their social responsibilities that they take part in the community that attracts the human eye to want to work for them. They have campus ambassadors on different college campuses that allow the attention to be drawn to them immediately at the beginning of the school year. In...
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...SOCIAL RESPONSIBILITY: WHY IT’S THE RIGHT THING TO DO “Being socially responsible means that people and organizations must behave ethically and with sensitivity toward social, cultural, economic and environmental issues. Striving for social responsibility helps individuals, organizations and governments have a positive impact on development, business and society with a positive contribution to bottom-line results,” (http://www.imasocialentrepreneur.com/social-responsibility/). In layman’s terms, corporations have a responsibility to serve the community while providing goods and services and making a profit. Business Law author Henry Cheeseman identifies the four theories of social responsibility as: a) maximizing profits, b) moral minimum, c) stakeholder interest, and d) corporate citizenship. In order to comply with social responsibility standards, all requirements must be met. Unfortunately, not all business owners feel obligated to be fully socially responsible. T.J. Rodgers, founder and CEO of Cypress Semiconductor, is one who does not. His primary interests are in maximizing profits and stakeholder interests. Whole Foods CEO John Mackey, on the other hand, fully grasps the idea of and practices all aspects of social responsibility. There are legitimate arguments for and against businesses performing social responsibility activities. The strongest argument in support of social responsibility is that because businesses have such a profound impact on their communities...
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...Social Responsibility 4/2014 JJT2 task 1 Social Responsibility Corporate Social Responsibility (CSR) is an organization holding itself accountable for the impact of its decisions and activities on society, the environment and, it’s own prosperity. Otherwise known as the triple bottom line of people, planet and profit (Lawrence & Weber, 2010). CSR is whatever a company does to give back to the community in which there is presence. Sometimes this involves grants, volunteerism or sponsorships. Other times, a company will chose to demonstrate its CSR by a commitment to clean energy or other commendable cause. J.D. Rockefeller stated the when a business gives back to the community, the company honors a tradition of giving to the people which makes continued success possible (Barker, 2014). The areas to be considered for a company developing CSR are the environment, ethics, organizational viability and legal considerations. The business of Protective Coatings will be reviewed in these areas and recommendations will be given to help the business in their efforts to be socially responsible. A1. Environmental Considerations and Recommendations Protective Coatings is a small independently owned business involved with applying protective coatings for a large variety of businesses whose applications reach into the industrial, private and public sectors. It is necessary for Protective Coatings to integrate environmental concerns into their business’s economic plan in order to...
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