Corporate social responsibility refers to a type of business self-regulation that is incorporated into a trade model; it is rather described as a wide field under research than a theory, concept, or term (Crane, McWilliams, Matten, Moon, and Siegel 6).
The corporate social responsibility strategy purposes as a fitted self-regulating device, whereby a trade guarantees and scrutinizes its active conformity with the fortitude of intercontinental standards as well as ethical principles. Its main objective is to embrace accountability for the actions of the company and hearten an affirmative impact through its activities affecting the environment, employees, customers, and stakeholders as well as community.
Stakeholder orientation signifies the stakeholders’ plans concerning organization as well as the goals the executives aim at attaining via associating with stakeholders. In each and every business, the stakeholders aim at gaining maximum profit.
Business ethics is defined as a kind of proficient ethics that makes the management department follow the moral principles as well as ethical predicaments that exist in a trade environment and society in general (Haynes 674). The ethical issues in a business reflect the amount of the profit the business is in a position to come up with.
Social responsibilities in an organization denote that the organization and the individuals involved must take into account artistic, ecological, financial, as well as social issues (May, Cheney, and Roper 6). Motivating for social responsibility aids the stakeholders, government and the associations to have a positive impact on the business.
Free market is the one where the costs of various commodities are determined by demand and supply of the merchandise. Despite the fact that free markets are supported by socialists, they have been incorporated by a number of suggestions for market collectivism. Free market may also be regarded to as a collection of exchanges that occurs in the social order.
Social responsibility can be described as a force controlling a trade in a way that accounts for the shared and ecological effects brought about by business. It involves understanding the impact of the trade on the external world and putting into consideration the manner in which the results can be used.
Enlightened capitalism refers to communal society in which free enterprise is utilized in coming up with a solution to the global problems. It tries to build a redefined art of trade through adopting varied models with an aim of enabling the business to attain its goals as well as maximizing the profits.
There are a number of individuals who manipulate the manner in which the term stakeholder orientation is defined. They are:
Adam Smith who upholds that market partakers considering only self-interests are normally directed by an unknown force, and thus they end up unintentionally promoting the society.
Theodore Levitt who as an editor of the Harvard Business Review claimed that businesses ought to understand the major aims of the organization as well as the stakeholders ought to play their part in achieving the set goals of the business so as to achieve a positive outcome.
Milton Freidman stating that there was only one social responsibility of a trade which was to utilize its resources and engage in actions that intended to increase its profits.
In conclusion, there are various steps of social responsibility that include philanthropic, ethical, regal and economic (Visser, Matten, Pohl, and Tolhurst 121). This encompasses a positive impact on the community, the set standards by the stakeholders as well as the adopted laws so as to come up with a successful business plan that will be advantageous to the organization, government as well as community.
Crane, Andrew, McWilliams, Abagail, Matten, Dirk, Moon, Jeremy and Donald S. Siegel. The Oxford Handbook of Corporate Social Responsibility. New York: Oxford University Press, 2008. Print.
Haynes, Thomas. “Social Responsibility and Organizational Ethics”. Encyclopedia of Business and Finance. Ed. Burton S. Kaliski. New York: Macmillan Reference USA, 2000. 673-677. Print.
May, Steve Kent, Cheney, George and Juliet Roper. The Debate over Corporate Social Responsibility. New York: Oxford University Press, 2007. Print.
Visser, Wayne, Matten, Dirk, Pohl, Manfred and Nick Tolhurst. The A to Z of Corporate Social Responsibility. West Sussex: John Willey & Sons Ltd., 2007. Print.