Three Essential Organizations of a Successful Community. Web. Our policy is based on the following principles: Chicago: University of Chicago Press, 2002. Does stakeholder orientation matter? 10    June 2016. CSR and stakeholder management are complementary approaches. This is why all members of society, including corporations, must respect the rights of others. “Roles of Government, Nonprofit Sector, Business and Family and Their Interaction in Democracy.” Urban Publications Paper 381 (2011). 99% of the Interview Advice you are Getting…. It also allows the corporation to shape the values of the community by having an invested social presence, and it empowers the company to determine priorities, measure results, and create a competitive advantage through a meaningful, symbiotic relationship with the community. These included recycling, carpooling, staff development, and social activities. Print. Failing to do so will compromise any other efforts made by the community to achieve the common good, because without jobs, there will be neither goods and services nor money to afford them. However, more corporations are moving to implement CSR into their business models because over the past couple decades there has been an increasing demand in society for businesses to implement socially and environmentally responsible practices (Moon 15, 81). Jefferson, Thomas. Lynch, Philip. Corporate Social Responsibility (CSR) Corporate social responsibility (CSR) is a business model that helps a company be socially accountable to itself, its stakeholders, and the public. (Credit: rowenphotography/ flickr/ NoDerivs 2.0 Generic (CC BY-ND 2.0)), Friedman, Z. 3. Based on this approach, an organization’s leaders and officers inform, involve, obtain feedback from, and influence each of their stakeholders with regard to strategy, issues, or opportunities the organization pursues. The Federalist. “Individualism, Innovation, and Long-Run           Growth.” Proceedings of the National Academy of Sciences of the United States of           America 108.Suppl 4 (2011): 21316–21319. How do sustainable business practices benefit consumers? Businesses that implement CSR practices into their business models do so because they recognize that their assets and market values depend upon social goods outside the preview of the market and that smart CSR practices benefit those who implement them. Some of those needs are tangible objects, e.g., healthcare, housing, groceries, resources, etc., other needs are social structures or activities, e.g., jobs, education, government, recreation, relationships, culture, etc., and others still are intangible ideals, e.g., moral virtues and self-actualization. They made sacrifices, worked hard, and found success in their innovation and determination, contributing to society, bettering themselves and their families as they realized the American dream. Vol. Corporate Social Responsibility Matters: Ignore Millennials at Your Peril. This is important because productivity contributes to business success, business success stimulates strong economic growth, and strong economic growth provides the leisure necessary for persons to engage in democratic and free market activities. A Thriving Economy in a Democratic Society. The Unites States Department of Agriculture Economic Research Service (USDA ERS) reported that the populations of rural communities have declined over the past half-century to account for just 19 percent of the total U.S. population. This should take account of the long-and short-term interests of customers, employees and workers throughout the wider value chain, as well as the general public. As a consequence, the machinery and equipment were dated and not optimally functioning. Human rights advocacy, however, need not be antithetical to a business’s market performance. Economic Freedom of the World: 2015         Annual Report. By taking into consideration non-market externalities, corporations attempt to realize possible non-market returns that are often times overlooked but have previously unseen market value. Web. A meta-analysis of 52 studies with a sample size of 33,878 observations suggested that “corporate virtue in the form of social responsibility and, to a lesser extent, environmental responsibility, is likely to pay off. Mahon, John F., and Richard A. McGowan. (2003). Much like Maslow’s hierarchy of needs, to realize intangible ideals, a community must first meet the most basic of human needs, which require a fair distribution of tangible objects in accordance with some predetermined social agreement. 12 June 2016. No business can solve all society’s problems or bear the costs of the doing so. 2 June 2016. Accordingly, it is of upmost importance that corporations engaing in CSR practices do so in accordance with and for the sake of these three primary components. For this reason, it is important to consider the most effective business models for corporations to implement in order to retain a favorable reputation within a society that is seeing an increase in socially conscious consumers while at the same time remaining competitive in a marketplace. It has a track record of being the most productive, efficient, innovative, adaptable, and job-creating economic system, bringing prosperity and quality-of-life to the most people. 46-53. Consider that one important difference between the strong economic societies of Western Europe and the United States and the weaker economic societies of Sub-Saharan Africa, many Islamic nations, and some Southeast Asian and Latin American nations is that the latter have varying weaknesses in their rules of law, due to either political unrest and civil war or tyrannical governments, whereas the former have stable governments with rules of law protecting the rights of the people (Gwartney et al. Moon, Jeremy. The term corporate social responsibility (CSR) refers to practices and policies undertaken by corporations that are intended to have a positive influence on the world. Davis explains, “Whoever does not use his social power responsibly will lose it. includes the moral principles and standards that guide behavior in the world of business; corporate social responsibility (CSR) is an integrative management concept, which establishes responsible behavior within a company, its objectives, values and competencies, and the interests of stakeholders (Meffert & Münstermann, 2005). But the viability of a particular CSR model is determined by its adherence to the guiding principles that constitute the necessary framework in which a corporation operates while pursuing social goods that are compatible with its functional role in the marketplace. 15 June 2016. CSR and stakeholder management have demonstrated benefits to firms’ reputations and profitability. One of the overarching lessons of this chapter is that goals and objectives are only effective to the extent that they reinforce the organization’s strategy and therefore the realization of its vision and mission. While the three essential organizations of a successful community form the foundation of every community, there are other elements of communal living that determine whether or not people consider moving to or staying in a community. Corporate social responsibility is about an organization taking responsibility for the impacts of its decisions and activities on all aspects of society, the community, and the environment. The Heritage       Foundation, 2016. Although the most significant company objective is to reap profits, concentrating solely on profitability is not sufficient in the current world. Whenever the government exercises its power in such a way that it infringes upon the rights of the citizenry, its authority becomes illegitimate. It’s about making sure that what you buy has been grown, caught or made with ultimate care for the environment and that workers are treated fairly. And if it is not a corporation, then what good is its other activities to society? I. With a business portfolio that includes such well-known brands as Nerf, Play-Doh, Transformers, and Mr. Madison, James. Melbourne: Human Rights    Law Resource Centre Ltd., 2006. For example, people want to know what activities, organizations, educational institutions, cultural experiences, and social groups a community offers. That is clear admission of how important CSR might be to their bottom line, no matter how difficult it may be to define CSR and link it to profits.”. If a community fails to provide social and leisure activities, there is a greater chance that fewer people will move to the community and that the community will be unable to retain those community members who already live there. Weber, Max. Corporate social responsibility (CSR) is a type of international private business self-regulation that aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in or supporting volunteering or ethically-oriented practices. Economic Freedom). But when businesses pursue their own ends at the expense of the society in which they operate, they will find that their success is temporary and potentially detrimental to stakeholders or the overall health of the economy (e.g., see bankruptcy of Enron Corp.), because businesses that engage in questionable practices are not sustainable in the long-term, especially within a society that carefully watches and scrutinizes business practices. Without exception, the managers articulated the importance of communicating CSR initiatives and policy to their employees, as well as recognizing the need to improve their CSR internal communication strategies. 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