Companies engage in CSR because, for a number of reasons, they think Essay

Companies engage in CSR because, for a number of reasons, they think it will be good for their profit margins Critically d - Essay Example A multitude of definition of CSR exist, and the range of views on the proper scope and extent of a firm’s social responsibilities, as well. Whether CSR is about companies giving charities, taking care of the environment, being sympathetic to workers or assisting their communities with expectations of financial gains remain a controversial subject (Bacher, 2007, p 12) The right definition of corporate social responsibility becomes more difficult when real business examples are taken into consideration. For instance, was Google acting in a publicly accountable manner when it put up with the Chinese law by sieving the content found through its google .cn search engine? Was UBS Bank acting socially responsible by opting to spend investors’ money to willingly reduce its carbon emission to attend to global warming when there is no legal duty to so. Does Heineken beer firm offer costly HIV/AIDS medication to its African workers and their beneficiaries if this is not anticipate d to bring financial gain to the company? In order to address these questions, it is essential to examine why firms go beyond the bottom line in an attempt to defend their CSR (Adams & Zutshi, 2004, p 32). A possible definition of CSR holds that the idea of social responsibilities presumes that the company has not only economic and lawful obligations, but also definite duties to the community, which go beyond these duties. Another explanation states that social responsibility is the duty of decision makers to take actions that guard and enhance the wellbeing of society as a whole along with their own interests. CSR is also taken to mean the continuing commitment by businesses to act ethically and contribute to economic development whilst enhancing the quality of life of the employees and their relations, the local community and the wider society, as well. Several elements found in various definitions suggest that corporations have duties that go beyond their bottom line (that, is, p roduction of goods and services at a gain). These duties entail helping unravel significant social problems, which the business itself has helped create (Adams, 2008, p 366). Companies have a wider constituency than shareholders only. Organizations serve a broader assortment of human values than can be captured by a sole focus on economic values. Narrower points of view on CSR hold that businesses have two main responsibilities. One is to abide by the elementary canons of each day face to face civility and to seek material gain. The second duty is the fiduciary obligation to investors (owners) is the bedrock of capitalism, and free enterprise will dry up without it. As such, definitions of CSR fall under two broad schools of thought: those with the view that business is mandated only to make profits within the boundaries of minimal ethical and legal compliance. The other school of thought holds that CSR entails broader responsibilities. Numerous factors and influences have resulted in mounting attention being devoted to the role of businesses and corporate social responsibility. They comprise of sustainable development, globalization, corporate sector impact, governance, finance, communications, ethics, leadership, business tool and consistency