A Stakeholder Approach to Corporate Social Responsibility | Free Essay Example

A Stakeholder Approach to Corporate Social Responsibility

Words: 560
Topic: Business & Economics
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Though being a comparatively recent addition to the framework of a company’s structure, the relational aspect of the stakeholder association with business still deserves being considered one of the most successful and promising innovations in the field of business and management. It is essential that the needs of all stakeholders involved should be taken into account when carrying out certain changes within the organization or making the decision that is likely to affect the firm on a basic level.

Although the significance of stakeholders has recently been enhanced, it is essential that an organization should introduce its own methods of increasing the significance of stakeholders and their opinion in the process of company-related decision making, which the principles of stakeholder management capability (Zakhem, 2007), CSR and corporate citizenship will promote.

Therefore, in order to improve the stakeholder relationship, as well as the overall management of the organization, one will have to consider the integration of the basic principles of corporate social responsibility (CSR) into the framework of the organization’s values and structure. According to the research by Jamali, CSR can be viewed as the cornerstone for the enhancement of not only the overall motivation rates across the corporation but also the level of engagement among the staff (Jamali, 2008).

Moreover, the integration of the principle of corporate citizenship into the organization’s framework is likely to lead to major improvements in the production process, as well as the performance of the staff. Seeing that corporate citizenship boosts the rates of responsibility among the staff, it presumably may lead to a rapid increase I the CSR rates among the employees: “Individual business can be deemed responsible only toward stakeholders” (Jamali, 2008, p. 214).

More importantly, by including the phenomenon of corporate citizenship and CSR into the framework of the company’s operations, one is likely to enhance the organizational values within the environment in question; consequently, the premises for successful negotiation between the members of the staff and the company’s management team will be provided to the stakeholders involved.

Therefore, the implementation of the CSR and corporate citizenship concepts in a specific workplace setting is expected to trigger a rapid drop in conflicts and misunderstandings occurring between the staff and the managers. As a result, the overall quality of relationships between the key stakeholders and the managers is improved considerably (Carroll & Buchholtz, 2014).

Moreover, the introduction of the elements in question promotes a better quality of communication (Jamali, 2008).

The specified phenomenon can be explained by the fact that the enhancement of corporate citizenship and the CRS principles among the staff contributes to a rapid direct profit maximization, according to the research carried out by Jamali: “By suggesting that the needs of shareholders cannot be met without satisfying to some degree the needs of other stakeholders, it turned attention to considerations beyond direct profit maximization” (Jamali, 2008, p. 217).

Therefore, the concept of corporate citizenship should also be viewed as an essential addition to the set of corporate values and principles, according to which the company operates.

As a result, the above-mentioned phenomena will create the grounds for the staff and managers to compromise and come to terms with certain issues that would have caused major conflicts otherwise. Consequently, the inclusion of the SCR and the corporate citizenship principles into the company will result in building trustworthy relationships between employees and managers.

Reference List

Carroll, A. & Buchholtz, A. (2014). Business and society: Ethics, sustainability, and stakeholder management. Stamford, CT: Cengage Learning.

Jamali, D. (2008). A stakeholder approach to corporate social responsibility: A fresh perspective into theory and practice. Journal of Business Ethics, 82(1), 213–231.

Zakhem, A. (2007). Stakeholder management capability: A discourse–theoretical approach. Journal of Business Ethics, 79(4), 395–405