JenaeWoodson07
I need scholarly sources for this paper. Corporate Social…
I need scholarly sources for this paper.
Corporate Social Responsibility
Introduction
I have been hired as VP of Operations and part of the executive team of a U.S. based company. Due to conventional thinking, the shareholders of the organization feel the focus on promoting environmental efforts and increasing employee benefits may have a negative impact on profitability. Given that I have successfully implemented a corporate social responsibility plan for a global organization in my previous role, I have been the Board of Directors to make an executive summary that outlines and analyzes how additional investment in the workforce and the environment can increase the organization’s profits. Corporate social responsibility or CSR helps a company be socially accountable to itself, its stakeholders, and the public by recognizing the economic, social and environmental impact the organization has on society. This means the company must operate in ways that will benefit the environment and improve society as opposed to the company having negative effect on the environment.
The Triple Bottom Line and why its important to move toward corporate social responsibility model
The triple bottom line focuses on how an organization contributes to the social, environmental and economic health of the world. When leaders focus solely on profit, it’s clear that their corporate social responsibility is not important to the organization, which is called the bottom line. Not only can ignoring CSR impact the organizations reputation negatively, but when organizations do not consider CRS, it could negatively impact the future as well. It not just about the social or environmental impact. It affects how the economy grows, an employee’s quality of life as well as their families, and the quality of the local community. It’s important for organizations to understand that we can make socially responsible decisions, while making profit as well.
When a leader keeps CSR in mind, their focus becomes more on how to integrate social, environmental and financial aspects into the company and not just how the company can make the most money. This is called the triple bottom line. While the bottom line is geared more toward profit only, the triple bottom line is implementation of People, Planet and Profit in an organization. Companies need to understand that in order to truly be successful, the three P’s must all be included into the organizations mission for the purpose of sustainability.
The people component of the Triple Bottom Line includes the employee’s, the labor necessary to keep the business operational and the environment the business is in. This company will play a part in the employee’s job satisfaction, pay employee’s appropriately and ensure that working conditions are safe and comfortable. The company understands the importance of giving back to the community that the organization is in. The planet component of the Triple Bottom Line ensures that the organization is taking the necessary steps to reduce its ecological footprint, ensuring the community and environment is not negatively impacted by the organization’s presence. This can be done by reducing and eliminating waste whenever possible, taking steps to invest in renewable energy like solar power or wind power and utilizing natural resources when possible. The last component to the Triple Bottom Line is profit. Although businesses should make profitability a priority, its still just a piece of the organization. The organization profiting should not be at the cost of the community, environment or the employees.
How The Risk of Financial Capital and The Allocation of Resources Result in Positive Returns
Financial capital is necessary for businesses to buy what they need to produce products or provide services to buyers, it refers to any economic resource that is measured in money. When allocating resources includes distributing resources for a variety of activities, with the goals of the organization in mind. The risk of financial capital could result in positive returns because a promising correlation is present between risks and returns. For example, the greater the risk, the higher the potential for profit, as well as loss. When the risks are low, the returns tend to be low as well. Whereas high levels of uncertainty are associated with higher returns.
Some Ethical Issues That Could Arise
Distributional fairness is one of the most common ethical issues that may emerge when considering the allocation of resources. It’s possible for the distribution of resources to be unequal, resulting in social and economic inequality. This will in return, widen the gap between the wealthy and the impoverished. Prioritization is another ethical issue that may occur. Political and economic opinions may play a role in the distribution of resources, which will result in certain groups being given more of a priority than others. The lack of transparency will cause ethical issues when distributing resources. This will cause consumer to have a hard time trusting the organization due to their ethical issues. This can lead to allegations of corruption.
The Consequences If Corporate Social Responsibility Is Not Addressed
If corporate social responsibility is not addressed, the reputation of the organization is at risk and the trust of their customers will be diminished, which will in return, reduce sales, the loss of market shares and attracting new customers. Legal issues can also pose a threat to the organization if corporate social responsibility is not addresses. Lastly, and most importantly, not addressing this issue could negatively affect the environment. This could cause a deterioration in the environment and increase in climate change. These organizations who disregard corporate social responsibility are more likely to violate humans and labor laws as well as exploit employee’s and contribute to social injustice.
