Corporate social responsibility true acts as an umbrella that incorporates the internal activities of a business, and its linkage with the external environment. To the external environment, social corporate responsibility fulfills the expectations of the society with regard to an organization in matters relating to ethics, legal concepts, and economically.
Corporate responsibility puts an organization in status of morality, and full of ethical values in its conducts, which in return makes the organization to benefit from its investors and to work in accordance with the law. The primary role of the corporate responsibility is to make an organization realize its other responsibilities apart from making profit. Such responsibilities include, stakeholders, employees, those who supply the organization, the intended consumers, the surrounding community, as well as the government among other groups.
It is true that how the business conducts itself in relationship with the society is related to the corporate responsibility. On the other hand, corporate responsibility also is a factor on how business conducts itself internally because business ethics is a part of corporate responsibility.
For instance, the economic issues defined by the corporate responsibility in an organization are the overall expectations of the society of receiving goods and services of quality from the business at affordable prices. Unless the business has effective production processes and committed employees who are up to the achievement of the set goals, it would be hard for the business to give such an output to the society.
The primary role of the business is to work effectively, enjoy profits at the end of their business year, and to put into consideration the shareholders interests. The legal responsibility covered by the corporate responsibilities expects that the business will perform its duties with regard to the rules and regulations set by the society because of competition in the marketing environment.
Currently, all businesses have many legal responsibilities concerning almost every activity in their day-to-day operations. Such legal responsibilities include goods and services laws, customer laws, employees, and the surrounding environment laws. The ethical responsibilities under corporate responsibility have major concern with the societal expectations, that the business would be ready to treat the members of the society in a fair and just manner. This implies that any business has more than just apply and obey the law; the society has norms that need to be met by the business even though they are not included in the law.
The business has a responsibility of organizing itself internally on how to meet and comply with the norms of the surrounding society for its business to be effective. The society as well as higher expectations of the business and its employees to be good citizens who can be willing to offer any needed support to the community or the whole nation through the support programs. The society would also expect the business to join hands in times of need for the benefit of the whole community.
In most of the cases, the society expects the business within it to offer equal businesses opportunities, to be assured by the business that the goods and the services offered are safe; workers have protected as well as the environment nearby. The society feel satisfied when such issues are met by the business around it. Moreover, for the business to meet all these requirements of the society, the internal part of it must be very organized and united to achieve the internal goals first and then the external ones.
There is a dire need for the existence of the relationship between businesses and the society. The increase of the modern companies in the world has resulted to creation of many social challenges to the environment. The corporate world can solve these challenges better. When businesses volunteer to handle these societal problems, there are increased chances of eradicating much government rules and regulations, thus making businesses have a future in the market.
Several businesses have proved to have a big reserve of both human and financial capital, that they should offer at least a portion of it to manage the social problems in the society. The business has both primary and secondary stakeholders such as the customers, future generations, trade and industry, and regulatory bodies.
An example of a businesses primary stakeholders are the owners, whose the business has a legal obligation to them. It is an obligation of any business to ensure that its owners are rewarded according to their levels of investments. The employees of the organization are part of the primary stakeholders who are also supposed to claim from the management.
The business as well as a great responsibility to its customers in a way that, the customers will receive goods and services of value, and safe. The business still has a responsibility to its counterparts that they perform business operations together. The social corporate responsibility ensures that apart from making profits, the business feels sure of future continuation and developments. Media is an example of a secondary stakeholder, that the business must develop some mechanisms to deal with.
Most of the media houses focus on the big businesses, and it is up to the business to conduct itself well internally to avoid bad image portrayed by the media. When a business adopts a corporate responsibility, several benefits have been associated with it. Apart from the society benefiting from this relationship, the business as well has been proofed to benefit in various ways, to begin with, the business starts enjoying improved financial performances, and lower operating expenses.
Above all, the image of the business is positively displayed as well a good reputation, this is achieved through the good deeds and the support offered by the business to the society and other stakeholders. Moreover, the business enjoys increased productivity and the improvement of the quality of goods and services its offering to its customers. Out of the increased productivity and the quality of goods, the business starts experiencing high sales and on the other hand, customers’ builds loyalty to the business and its products.
Through corporate responsibility, the business is in a position to retain its old customers as well as attract more and more customers to the business. It also becomes easier for the business to have a wide variety of sources of capital, and the workforce of the business has diversifications. All these benefits are internal, enjoyed after a good relationship of the business with the society is developed.
The community and the public in general also enjoy several benefits like charitable contributions, high quality products at an affordable prices, and other supports like in education, sources of employment, and home creation programs. The community also benefits from the free programs offered by the business employees to the nearby society.
As the company and the community benefits, the environment as well as some paybacks especially due to the high material recyclability, and the regular usage of renewable sources. For the business to manage the corporate responsibility well, and for a long time its management should be prepared and ready. The management is the core source of the things done by the business either internally or externally.
The business management team then passes this to the employees who are one of the primary stakeholders to facilitate the plans of working towards the togetherness of the business and the society. This implies that the cooperation of the business with the society must involve the internal practices of the business for it to be successful. All the benefits gotten out of this relationship of the business with the society are of much help to both the business and the society. These benefits are realized by the business either as an increased profit, sales or through attraction of more customers.
The business and the society around is like a one big circle that keeps on rotating, one part benefiting the other, as well as enforcing one another. The society expects a lot from the business in its operation beginning with the goods and services of quality to other forms of support.
For the business to feel it has fulfilled its obligation, it meets these requirements of the society through the support of its employees. In return, the society responds positively to the business, making it grow and develop to offer more support. The corporate responsibility of the business cannot succeed without the incorporation of the internal practices.
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