It is generally accepted that corporations have social responsibilities beyond profit making. Indeed, there are several arguments to this effect even though many of them are from the perspective of the enlightened self interest of corporations.
Critics of the idea of corporate social responsibility contend that when corporations act in ways that are socially responsible out of enlightened self interest , such actions are not truly acts of social responsibility but acts designed to enhance their profit carried out under the guise of corporate social responsibility.
It should be largely to the effect that corporations should and actually take on social responsibilities because it is in their self- interest to do so. When a company is socially responsible, it help build its brand image. Here are the reasons why corporations adopt social responsibilities:
Why Corporations Adopt Social Responsibilities.
The following can be accrue to the reason why any business type practicing corporate social responsibility:
1. Businesses that are socially responsible are likely to attract more customers while those that are socially irresponsible may experience undesirable consumer actions. For example, they may have their goods and services boycotted by customers..
2. Corporate social responsibility is a way of making a positive and long term investment that would facilitate the evolution of a more educated, more equitable and safer society.
Such a society would provide a better social environment within which corporate entities would be better positioned to pursue their corporate interests.
3. Better, more skilled employees are likely to be attracted to corporations that are considered to be socially responsible. Employees are also more likely to be to be more committed to corporations that are socially responsible than they would be to those that are not.
4. Being socially responsible would facilitate corporate independence as there would be the reduced need for governments to legislate in corporate matters.
5. Corporations, through their activities, generate social problems and as such have a social responsibility to resolve such problems and also prevent other social problems arising from them.
One of such problems is the problem of environmental pollution caused by many manufacturing industries.
6. In contemporary society, corporate entities wield tremendous socio-economic and socio-political influence and also have great resources at their disposal. They should use all these responsibly in ways that would enhance social welfare.
7. Corporate activities have social impacts on all stakeholders through the provision and distribution of goods and services, employment of workers, payment of taxes, publication of financial statements, and other corporate actions.
As such, corporations cannot escape responsibilities for the social effects of their actions, be it positive, negative or neutral.
8. Corporate entities benefit from society in the sense that the latter provides the platform as well as all the resources required by former to function.
This imposes a duty on corporate entities to take into account the interest of the larger society as they embark upon their profit making activities.
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