Wednesday, 12 October 2016

Corporate Social Responsibility

Hello readers, today I will be writing about the corporate social responsibility (CSR).  Corporate social responsibilty is the continuous action of a business to participate in the sustainable development of a society by providing benefits to all stakeholders of a business. The CSR pyramid will be used to describe the CSR further. The CSR covers four responsibilities which are the economic responsibility, legal responsibility, ethical responsibility and the philanthropic responsibility. 

Economic responsibility
Businesses were created with the aim of providing goods and services to meet a need in the society so as to be able make profit. It is the responsibility of managers to provide investors with good dividends as well as an increase the share price of their stocks. Employees also want a good salary and customers want goods and services at fair prices. Thus, it is the responsibility of the business to meet this economic needs.

Legal responsibility
A business must obey all the rules and regulations that governs the industry it operates in. This include the laws provided by the country the business operates in, the regulations of the body that governs the industry the business operates in and others

Ethical responsibility
A business must carry out the right activities whether or not the law has anything to do with it, that is what this responsibility is all about. Thus, even if there is no law preventing an action and the business deems it fit to be wrong then the business should not carry out such activity.

Philanthropic responsibility
It denotes that the business should be a good corporate citizen, encouraging businesses to contribute to the development of a society. They could donate money, build roads or schools (it is must be within the capability of the business), just something that will benefit the society at large without expecting anything in return.

That is all for today, thank you for reading this article. Keep checking out my blog regularly. Cheers!