Corporate Roles and Responsibilities in Society
Corporate Roles and Responsibilities in Society
Corporate Social Responsibility (CSR) roles are functions that organizations perform as responsible members of the community (Kidder, 2001). The roles of responsibilities of business organizations in society are defined broadly by the extensive range of stakeholders (Warhurst, 2005). The shareholder profile is dynamic, and changes in their characteristics influence the expectations for business organizations, in society and the way in which corporations set new standards of responsible business practice.
In relation to the classical economic theory, the role of corporations is shareholder value maximization (Ibid). Therefore, meeting the needs of stakeholders including the social and environmental dimensions should only occur if they create shareholder value. It involves economic, ethical, legal, and philanthropic responsibilities to society (Dorfman et al, 2012). Organizations conduct business activities while paying attention to the balance between business actions and social responsibility activities. With the advent of globalization and technology, the nature of CSR roles is changing with time. The vital question is can organizations cope with the dynamism in the stakeholder profile?
The emerging trend in social responsibility requires the evolution of global frameworks that motivate businesses to reinvent themselves as the drivers of positive change in society. It involves going beyond the paradigm of simply doing no harm and the expectations of business being primarily about stakeholder value. Corporations should invest in processes that enhance social and environmental sustainability. Organizations are aware of the need for ethics in their cultural fabric, and, so, are building business driven by ethical codes of conduct.
References
Dorfman, L., et al. (2012). “Soda and Tobacco Industry Corporate Social Responsibility Campaigns: How do they compare?” PLOS Med, 9(6)
Kidder, R. (2001). “Ethics is not optional”. Association Management, 15(13(: 30-32.
Warhurst, A. (2005). “Future roles of business in society”. Futures, 37(2-3): 151-168.
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