The relationship between Corporate Social Responsibility and Stakeholder. What for? Is it related to Business Ethics?
The corporate social responsibility (CSR) is key but not the core function of an enterprise. The CSR is a public relation meant to contribute to an enterprise's positive image and reputation. A good CSR attracts and retains customers that may in long run benefit the stakeholders in returns earned. The CSR could contribute positively to public in terms of education, scholarships, roads, health, water supply, environmental conservation, and management, among others. India, the CSR is anchored in law that makes mandatory for every enterprise to set aside 2% of the budget to CSR.
Very simply answer: Stakeholders are THE most neglected factor in (project) success.
Look at the 'Brent Spa' incident or the 'Knock Nevis' or even the Batillus class ships. Failure to incorporate Stakeholder's perception is crucial.
While it makes sense from a business point of view, engaging with your Stakeholders is nothing but CSR in itself. Please see below for references.
Kind Regards
Roland
Branco, M., Rodrigues, L.L., 2007. Positioning stakeholder theory within the debate on corporate social responsibility. Electronic Journal of Business Ethics and Organization Studies 12, 5–15.
Crane, A., Matten, D., Spence, L.J. (Eds.), 2014. Corporate social responsibility: readings and cases in a global context, 2nd ed. ed. Routledge, London ; New York, NY.
Harrison, J.S., Wicks, A.C., 2013. Stakeholder Theory, Value, and Firm Performance. Business Ethics Quarterly 23, 97–124.
The following papers may also help:
- Argandoña, A. (1998). The stakeholder theory and the common good. Journal of Business Ethics, 17, 9/10, pp. 1093-1102.
- Carroll, A. B. (1991). The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34, 4, pp. 39-59.
- Donaldson, T. and Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of management Review, 20, 1, pp. 65-91.
The relationship between Corporate Social Responsibility and stakeholder is necessary to confirm the claim of the stakeholder theorist that investment in Social Activities enhance economic performance.
Thanks for your response and views all. I don't believe the companies concern to stake holder why? Cause the goal of companies is making profit. If they concern about stakeholder just a part of strategy from companies to claim about business ethics. Previous research just only hypothesis, Please see all research about stakeholder, you can find limitation of the research so there a lot of questions about 'stakeholder' Thanks and we can continue discuss about this case. Welcome and keep in touch I don't put this question just only get the answer from you all however I want to know about your opinion with your views and knowledge.
I believe it is for the benefit of any organization to get stakeholders involved. The relationship between Corporate Social Responsibility and stakeholder is necessary to confirm the claim of the stakeholder theorist.
Organizations work for fulfilling all the stakeholders' expectations. Accordingly, organizational strategies are worked out for stake holders' value creations. Every stakeholder has different expectation. Shareholders look for high return on investments, Employees look for career growth and job satisfaction, Government desires high collection of direct and indirect taxes. Similarly Society, which is one of the stakeholders expects organization to perform its duties towards fulfillment of Corporate Social Responsibility ( CSR ). Other stakeholders also have their own expectations. Therefore, it is in the interest of the organizations to involve all the stakeholders, and understand their expectations for working out corporate strategies for growth and sustainability. Corporate is required to perform: Economic, Social, Legal, and Ethical responsibilities.
CRS is what organisations give back to the community as a fair share for social and economic development, which I fully agree with Jaharkanti on the aspect of stakeholders.
John Parker.
The company is the subject of social responsibility and its managers are the subjects of ethical responsibility. The limit of the enterprise is the dominant economic system that tilts the balance towards it that has more power. The limit of managers is their responsibility towards investors because they have to respond to the one who has the most power.
Agreed with many of these points. Much of the challenge faced by CSR is in fact rooted in evolutionary psychology and deep rationality (often mistaken as irrational behavior) of leaders. We discuss ethical responsibility on our LinkedIn group focused on International Business Ethics: https://www.linkedin.com/groups/8563002
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