Corporate Social Responsibility Essay Example | Topics and Well Written Essays - 2500 words

Corporate kind Responsibility - Essay ExampleCorporate fond responsibility, though very important, may rarely come in without serious concern for better financial performance or increased market share. In separate words, studies reveal that managers are more likely to opt for investment in affectionate ventures if they are reliable of monetary gains. Since in most cases affable responsibility is closely linked with better financial performance, thereof managers are willing to invest in ventures for the public good. Lydenberg et al. (1986) maintain that Companies fight hard for even a small percentage gain in market share for their harvest-times. If and when corporate managers become convinced that their companys affectionate record affects market share, they will be forced to take social initiatives seriously. Social responsibility has as well as become a buzzword because of the availability of a large variety of similar goods. When a product comes into the market, it has to fight very hard for consumers attention because there are several other rival goods competing for the same. A marketing and design consultant (Neuborne, 1991) states There was a time when you bought a product just for its value or performance...but with the number of products available, it is increasingly difficult to differentiate one product from a nonher. In this situation, a consumer may base his buying decision on a companys image and its commitment to public good. This is clearly indicated by a book, Shopping for a Better World that has been selling millions of copies since it first came out in the market. the book rates and ranks companies consort to their social responsibility performance. As a result of this in 1989 alone, 78% of buyers switched brands. (Davids1990). World Bank defines CSR as Corporate Social Responsibility is a term describing a companys obligations to be accountable to all of its stakeholders in all its operations and activities. While it is now tru e that corporate social responsibility is highly desired, it has not always been the accepted practice for corporations. In 2004, for example, Henry Miller in The Miami Herald, Henry Miller wrote, Businesses do not have social responsibilities only people do. (Miller, 2004). Similarly The Economist failed to see why corporations must be forced to adopt a socially responsible framework. Thus in its 2005, issue The Economist sceptically reviewed the firms that were contributing to tsunami relief effort All things considered, there is much to be said for leaving social and economic policy to governments.(The Economist) Milton Friedman was probably the first theorist and economic expert to reject the theory of social conscience of business when in 1970 essay, he declared There is one and only one social responsibility of business-to use its resources and engage in activities designed to increase its profits.