Business Organization Shareholders vs Social Responsibility
ABSTRACT
In this essay, I am going to prove that a business organization should be socially responsible in a successful or an effective manner which will eventually benefit the company’s owners or shareholders. I will do so through illustrating the different potential effects of a business organization engaging in Corporate Social Responsibility (“CSR”). The effects that will be shown in this essay would be an increase and decrease in the company’s expenses, sustaining and harming the environment, increase and decrease in sales and customers, improve the lives of people inside and outside the company, and the practice of social irresponsibility. I will also be providing actual companies engage in CSR, and its effects on each company. I will be citing several companies such as Petite Four Legs, Panga Organics, Verdigris Group, Cisco, British Petroleum, DLA Piper, PepsiCo, and Enron. All of these companies engage in some kind of social responsibility and may or may not have a positive effect on them.
Business Organization Shareholders vs. Social Responsibility
A business organization is owned by shareholders or owners. They supply the capital or money for the organization. The money will then be used to create goods or services that will be sold to reach goal of the business which is to enhance the entity’s profits and the gains of the owners or shareholders (Magaro, 2010). Being socially responsible is beneficial to the shareholders or owners of a business. This is because social responsibility is being ethical and sensitive towards cultural, economic, environmental and social issues (Enevoldson, 2014). For a business organization to practice being socially responsible, they engage in Corporate Social Responsibility (‘CSR’). It means that the ‘business does more for the well-being of others than required in an economical and legal sense’ (van de Lingen, 2011). This will eventually create profit for the company. Therefore, a business organization
In this essay, I am going to prove that a business organization should be socially responsible in a successful or an effective manner which will eventually benefit the company’s owners or shareholders. I will do so through illustrating the different potential effects of a business organization engaging in Corporate Social Responsibility (“CSR”). The effects that will be shown in this essay would be an increase and decrease in the company’s expenses, sustaining and harming the environment, increase and decrease in sales and customers, improve the lives of people inside and outside the company, and the practice of social irresponsibility. I will also be providing actual companies engage in CSR, and its effects on each company. I will be citing several companies such as Petite Four Legs, Panga Organics, Verdigris Group, Cisco, British Petroleum, DLA Piper, PepsiCo, and Enron. All of these companies engage in some kind of social responsibility and may or may not have a positive effect on them.
Business Organization Shareholders vs. Social Responsibility
A business organization is owned by shareholders or owners. They supply the capital or money for the organization. The money will then be used to create goods or services that will be sold to reach goal of the business which is to enhance the entity’s profits and the gains of the owners or shareholders (Magaro, 2010). Being socially responsible is beneficial to the shareholders or owners of a business. This is because social responsibility is being ethical and sensitive towards cultural, economic, environmental and social issues (Enevoldson, 2014). For a business organization to practice being socially responsible, they engage in Corporate Social Responsibility (‘CSR’). It means that the ‘business does more for the well-being of others than required in an economical and legal sense’ (van de Lingen, 2011). This will eventually create profit for the company. Therefore, a business organization
References: Barrett, A., 2011, ‘Should you switch to green packaging?’ INC., viewed on 9 August 2014, <http://www.inc.com/magazine/20110501/switching-to-eco-packaging.html> Belsky, G Enevoldson, N. 2014, ‘What is social responsibility? ’, How to become a social entrepreneur, OptimizePress 2.0, viewed 17 July, 2014, <http://www.imasocialentrepreneur.com/social-responsibility/> Fallon, N Lemon, K. et al., 2011, ‘Measuring the effects of corporate social responsibility,’ vol. 3, no. 7, p. 1, viewed on 5 August 2014, < http://www.conference-board.org/retrievefile.cfm?filename=TCB%20DN-V3N7-11.pdf&type=subsite> Magaro, M