Do corporate social responsibility provides greater benefits to the organization than it does to society and other stakeholders?

Introduction:Early in late eighteenth century, after the British successfully finished industrial revolution for the first time, corporate enterprise has fully developed in modern sense.However,at that time, the concept of corporate social responsibility did not appeared, ethical behavior of corporate social responsibility in practice were limited to personal ethics. The theory of the invisible hand" by Adam Smith is thought to be the starting point of corporate social responsibility. According to classical economics theory, if the enterprise as far as possible make the most efficient use of resources to provide products and services for the social needs, and price their products or service which consumers are willing to pay for it, in that way enterprises have accomplished their own social responsibility.

By the end of the eighteenth century, western concept of corporate social responsibility began to change delicately, with the fact that small business owners always endowed school, the church and the poor .

Having entered the nineteenth century, business executive held negative views on CSR.Most of them did not carry social responsibility on

shoulders,instead,they tried every means to make profit from their employees, suppliers or any other stakeholders in as crude way as possible in order to stand in the forefront of the market competition.

As time went by, awareness of corporate social responsibility grew among public and made an intangible supervise for enterprises.Current thoughts indicate that, society is beginning to appreciate more fully that there must be more limitations to our consumption of natural resources and business activities must take their impact on environment,society and economics into consideration. That Self-interest protective behavior combined with market competition will protect public interest, is now become less and less tenable at such competitive and free market,which is seemed to be challenge for the orthodoxy(Neimark, MK ,1995). Carroll explains that corporate social responsibility involves the conduct of business and thus it is economically profitable, law obeying,ethical and public supportive(David Bevan,Robert Annop Wynne,2011).The passage focus on corporate social responsibility, or CSR, and make an argument that corporate social responsibility provides greater benefits to the organization than it does to society and other stakeholders.Firstly, it will be a brief expression about the definition of corporate social responsibility, including an expression about what kind of social responsibility enterprises should take.Following this,it will be a

comparison between how CSR impact on the organization itself and the society or any other stake holders. Finally, recommendations on building corporate social responsibility and final conclusion about how corporate social responsibility provides greater benefits to the organization than it does to society and other stakeholders will be given.

Definition of CSR

Current thinking for corporate responsibility has arisen concern by public due to its combination of the instrumental and ethical within organizational life(Max Baker,John Roberts,2012).Corporate social responsibility means that enterprises should not only bear legal liability , but also undertake responsibility of employees, consumers, communities and environment . Corporate social responsibility requires enterprises not to regard the profit as the only target , but to focus on human values in production process and emphasis on the contribution to consumer, environment and society. In other words, definition of corporate social responsibility include the concept that corporations have duty toward society,not just for their economic or financial responsibilities to shareholders(MS Schwartz , David Saiia ,2012).

First of all, enterprise should undertake and carry out economic responsibility, which is the cornerstone of corporate social responsibility.

By analyzing social responsibility of enterprise, it can be viewed from two perspectives: efficiency and inefficiency. In terms of under technological condition, enterprises of high efficiency can obtain higher returns and payments, and maintain a better sustainable development. Therefore, from the efficiency perspective under technological environment, corporate social responsibility involves sales revenue, net profit and other economic indicators, also regarded as enterprise economic responsibility, which is the core and most basic level of corporate social responsibility.Without economic responsibility, the corporate social responsibility just like a Pyramid collapse at the first blow.

Secondly, enterprises should set an example in being well-regulated by laws, regulations, government policies including environmental protection law, consumer law and labor protection law. Accomplish all the contractual obligations, and behave in integrity and legitimate when doing business,etc. Boost up the awareness of well-regulated and obligated among all the employees and their community.

Thirdly, ethical responsibility,which is the social expectations for enterprise. Enterprises should try every effort not to make negative effects on the society by providing products and services in low quality or beyond ethical regulation.Thus, enterprises should Accelerate the

optimization and upgrade its industrial technology and structure, vigorously develop environmental friendly enterprise, try to make contribution for environmental protection and social stability.

Finally, it is the responsibility of charity for enterprises. The investment in public welfare of enterprises helps to improve the living standard and education conditions of the poverty population or vulnerable groups, or help areas to recover after being suffered in great disaster, and they did get the benefits.At the same time, enterprises obtain lots of benefits by investing such public welfare. The effect of public welfare behavior, basically speaking,is a kind of soft advertisement which is easy to be naturally accepted by public,or potential customers.Enterprises who bear and undertake responsibility is recognized to benefit both the society and the organization itself.

How CSR Impact on Organization and Any Other Stakeholders

Most assessment about organization performance focus on which companies made the most profit, how rapid they develop, and who have the biggest goldern parachutes(David,Bejou,2011).However,with the highly development of globalization, businesses are now involved in wider public issues thorough the whole world.As a result, this means that the more powerful corporations grow, the more responsibility that they

should bear continues growing,too.And in another words, from a critical view corporate social responsibility now becomes an effective practice to enhance the power of corporations in large size(Subhabrata Bobby,Banerjee,2008).As intangible assets and corporate reputation are becoming increasingly critical components of business success, this inevitable trends require that business strategy should involve ethics and sustainability approaches.

? Impacts on society or any other stakeholders

Corporate social responsibility is conducive to saving resources, and accelerate the development of environmental-friendly economy. With the highly-developing industry and economy and the increasing population,the limited resources and natural environment are now facing greater and greater challenge. Since corporation is the main consumption of resource and main pollution of environment, it is a necessity for them to establish awareness to emphasis on social responsibility and undertake high level of responsibility for the public,society and environment.In another hand, corporation in charge of a large quantity of fortune in the whole society, it can accomplish recover by only little effort if enterprises all take the responsibility of charity on shoulders when encounter disaster that have done great harm to damaged areas. And in addition, corporation who bear social responsibility set a good example among industry and economic area, which also have great impact on public by its ethical

culture.And thus it may lead the whole society form in highly democracy and well-regulated by the rule of law, fairness and justice, and promote the society in stability and order situation, and therefore establish honest and friendly social atmosphere.In conclusion, it is of vital importance for corporation to be of great awareness for social responsibility.

? Impact on the Organization Itself

Firstly, it is helpful to nurture corporate culture.Corporate culture exists in every corporation, positive and outstanding culture will accelerate the development and maintain sustainability of the enterprise.However,negative and out-of-date culture would be the greatest trip-over for its development.

By making improvement of corporate working environment and establish a reasonable salary system, the enthusiasm and productivity of staff may soon be boost up,and moreover, it also helps to nurture staff to positive values.The unity of employee values and corporate values enable the executives of enterprise to carry out effective management.Additionally,the establishment and improvement of medical insurance, endowment insurance and other welfare system, education system, continuously improve corporate cultural level and technical qualities, and create a free platform for employees to bring out their best

potential and talent.And thus the whole staff are driven to accomplish to the common goal, maximize the working efficiency and saving costs indirectly, and therefore, improve the corporate competitiveness.

Secondly, it is helpful for enterprises to establish a positive social image. The competitiveness of brand refers to the ability to occupy the target market and the size of its market share.Higher competitiveness of brand enable the enterprise to consistently maintain sustainable profit ability, is the core competitiveness of enterprises.The consumer is not only the ultimate motivation of the enterprises create value of goods and services, but also the primary power to produce demand. Whoever lost customers will lose the basis of their survival. If the enterprise keeps high standards of quality for their products or services, it can enhance consumer trust and helpful to maintain effective communication between customers or client and corporation.And thus easily win the favor of long-term customers and attract more potential consumers.In addition, if the enterprise regard participation in public utilities as the necessary social responsibility, it will surely enable enterprises to form a positive and favorable social image,which is one of the necessary premise of the improvement of brand competitiveness.

Thirdly,CSR enhance the independent innovation capacity of enterprises.

Independent innovation means that the enterprise explore the cutting edge of technology, break through the technical difficulty, and do technological research to create products of services which obtain intelligence property rights through their own study and research and activities and thus boost up the corporate competitiveness.To maintain the competitive advantage in the market, the business activities and production of corporation should meet market needs as well as high quality and low cost.This requires the enterprise to improve productivity,efficiency and enhance the innovative. By actively fulfilling their social responsibilities,enterprises can easily attract and retain talents.Competition nowadays is the competition of human resources, any innovation in enterprise is done by the talents.

Fourthly, enterprises who undertake social responsibility can easily attract investment and obtain scale profits.

Enterprise liability of shareholders is the primary responsibility of enterprises. If enterprises can ensure assets and profits for shareholders, keep accurate inform with shareholders regularly and timely, it can obtain firmly trust from the investors and financial institutions which facilitate enterprises to absorb funds to ensure the normal operation of production and meet the capital needs of enterprise.As a result, it is beneficial for corporation to expand the scale of business and obtain scale profits and

thus,improve its competitiveness in the market.

Finally,enterprises who pay attention to social responsibility are more easier to obtain the support from government and obtain scarce resources. The corporation is a member of the whole society, it is their obligation and responsibility to reduce environmental pollution and undermine wast use of limited nature resources. Only when enterprises obey the government management and take public benefits into consideration can they win public support from the government and the community.


? Boost up social responsibility awareness of the entrepreneur

, who are the leaders of enterprises, have a decisive effect on the corporate culture and management pattern.We often narrowly emphasize the entrepreneur's management ability and competition ability ,However, the current situation requires that managers should have better ability and quality of fulfilling social responsibility .Entrepreneurs should fully understand the relationship between enterprise and society and get a better understanding about the relationship between corporate responsibility and social responsibility. And thus establish corporate value on right tracks and enhance social responsibility sense of mission.

? The leading role of government in boosting up corporate social responsibility

The nurturing of corporate social responsibility requires driven power from a certain social environment.It can't completely driven by the own consciousness of entrepreneur. Instead, it needs various social forces and government motivation.

To formulate and improve relevant laws and regulations to strengthen the supervision of corporate social responsibility.Basic social responsibility of enterprises must write into laws so that CSR can be gradually legalization. Any behaviors or conducts that not meet the international standards should be improved and modified by the legislative or the local legislation.Meanwhile, public sectors should encourage or offer advice for entrepreneur to establish relevant regulations to improve safety, health, environmental protection, labor and social security of employees.the legal consciousness and strengthening corporate social responsibility. It is a duty for government to guide enterprises to transform their management style and concept, and encourage them actively fulfill their social responsibilities.

Set up incentive system and relevant regulation to limit business activities.Make out policies to improve working and living conditions for

staff and strengthen the practice of environmental protection.Besides, award enterprise who make contribution to public welfare and charity.And thus gradually formed the incentive and security system of CSR. Enterprises who do not pass the assessment of relevant standards should not government funding or even deliver to market.Additionally, whoever have been in "bad record list" of social responsibility will be limited to enter market.

? Involve public and society supervision into regulation of CSR.

To get public and society supervision involved, news media should strengthen the exposure of inappropriate and illegal corporate behavior such as illegal production and management style,fake commodities,cheat out the intreast of customer. Only by combining efforts of public supervision and legal supervision can the whole society form an effective supervising atmosphere and motivate enterprises to become organizations that perform well of social responsibility.Business activites should be in "open and free competition without cheating and fraud",and enterprises should recognize that a broad range of ethic obligation and social responsibility should be laid for business(Thomas Mulligan,1986). It should also be mentioned that it is impossible to urge enterprises who take on responsibility that not meet their current economic situation. Corporate social responsibility should be consistent with financial


? Internal establishment of corporate social responsibility

Whatever measures mentioned above cannot be put into practice effectively without the internal establishment of corporate social responsibility.

Enterprise must recognize their responsibility not only to their shareholders but also to their customers, suppliers,staff, local community and environment which their business activities or production process locate.All the stakeholders should be taken into full view.

The degree of the practice of social responsibility that enterprises perform linked to the decision that managers make is whether ethical or not.As a result, enterprise should firstly set out entrance ethic standards for those who apply for the position of managers and set up some relevant training programme of CSR in order to improve awareness of corporate social responsibility of managers, or even their subordinates.

Internal incentive system should be established to encourage the whole staff to perform ethical in working practice and production process.Stimulate and nurture corporate awareness and value that business activities should not just focus on pursuing financial profits but

emphasis on intangible assets that bring more profits back to the corporation.

Anything about consumption of natural resources and any impact on neighboring surroundings should be reported to the outside world.This means that corporation need to be honest and open about their business activities and production process and expose themselves in public comment and social criticism.It is never an easy task, of course.

Conclusion:It is difficult task to coordinate businesses pursuing profits as well as being ethical(Christopher Cosans,2009).Corporations are the center of a complex web of relationships with stakeholders and interest group, and frequented by large quantities of clients in a daily basis(Geert Demuijnck,2009). If marketing is about getting more sales volumes and sustainability is about producing less pollution and waste fewer natural resources, how on earth are enterprises achieve both goals at the same time? Perhaps it is overestimated the depth of the opposition between such goals. The role that enterprises should be is to align what the corporation provides to what the public wants.All these mean that corporation must put their investment like money,people and resources on projects that really add value and benefit for customers.It is hard to say whether corporate social responsibility bring benefits to the organization

more than that of the society or any other stake holders.However,according to the analysis above, it is a certainty that nurturing corporate social responsibility greatly benefit both of them.Organizations gain reputation and favor from public, profits and earnings increase, and shareholders, employees are satisfied.Customers obtain products or services of high standards in suitable prices and the society form an honest, fairness atmosphere.Of course, economics keep developing and government gain more returns from that.All these stakeholders impact on each other and ultimately maximize economic performance and thus improve living standards of each person,each organization.It is optimistic to see that most of more and more corporations have typically taken the form of the development of social responsibility and ethic nurturing,for some corporations,a move to corporate public image and long-term developing strategy has been as an important components of their financial accounts(John,Roberts,2003).Whoever falls behind the trends will surely fail in the business game.


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Subhabrata Bobby, Banerjee, 2008, "Corporate Social Responsibility: The Good, the Bad and the Ugly",in Critical Sociology, 34(1), pp 51-79.

Bejou David, 2011, "Compassion as the New Philosophy of Business", in Journal of Relationship Marketing, 10, pp 1-6.

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Mulligan, Thomas, 1986,"A Critique of Milton Friedman’s Essay “The Social Responsibility of Business Is to Increase Its Profits"", in Journal of Business Ethics, 5, pp 265-269.

Neimark MK,1995,"The selling of ethics: The ethics of business meets the business of ethics", in Accounting, Auditing & Accountability Journal, vol. 8, no. 3, pp 81-96.

Roberts John,2003,"The Manufacture of Corporate Social Responsibility: Constructing Corporate Sensibility", in Organization, 10, pp 249-265.

Schwartz MS, Saiia David,2012, "Should Firms Go “Beyond Profits”?

Milton Friedman versus Broad CSR", in Business and Society Review, 117, pp 1-31.

Geert Demuijnck,2009,"From an Implicit Christian Corporate Culture to a Structured Conception of Corporate Ethical Responsibility in a Retail Company: A Case-Study in Hermeneutic Ethics",in Journal of Business Ethics ,Volume 84, Issue 3 Supplement, pp 387-404

David Bevan,Robert Annop Wynne,2011,Ethics in Small and Medium Sized Enterprises,pp 255-274,Springer Netherlands

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