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Do Corporations Have Social Responsibility

In: Business and Management

Submitted By shravan13
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Do Corporations Have a Responsibility to Society Beyond Maximizing Profit?

Shravan Kumar M

Under the direction of professor, Minnick, Marc D
Corporate Social Responsibility beyond Maximizing Profit
Growing concern of society on socio-economic and environmental issues has raised the thought of corporate social responsibility. Corporate Social Responsibility (CSR) is a “concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis”, which means beyond the frame given by law – by World Business Council for Sustainable Development (WBCSD) in 2004.
Growing needs in energy, especially in emerging countries, limited oil reserves (non-renewable energy will necessarily become more expensive and renewable energy will be more and more used), waste management, and demographic growth at the global level (Currently we are 7.2 billion population approx.) are factors requiring that we take care of the environment and natural resources, and that we modify our consumption modes. The decrease in natural resources, demographic pressure and climate change, the increasing volatility and high prices of energy resources are present and future constraints that put the emphasis on energy and environmental issues, and place them in the heart of companies’ sustainable development policies.
Main Arguments of Robert D. Hay and Edmund R. Gray
Robert D. Hay and Edmund R. Gray argument emphasizes on stakeholder theory. They have identified three phases in the development of social responsibility. 1. Profit Maximizing Management:
In this phase, the only objective of managers is to maximize profits and was seen as a vehicle for eliminating economic scarcity. There was no concern regarding usage of natural resources, polluting streams, lands, unethical advertising, urban problems,…...

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