Corporate social responsibility has four components. Do you agree that public firms should address all four elements? Why or why not? If not, where should the firm “draw the line”? Please provide an example to explain your logic. According to Rothaermel there are four components to corporate social responsibility. They are economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility (18). Economic responsibility deals with the fiscal responsibilities a company has to its debtors, suppliers, governments, and investors. This requires a certain ethical obligation of an organization. Legal responsibility requires the company to adhere and obey all laws that exist within the host nation. Ethical responsibility goes beyond legal obligations and creates and ethical working environment that tries to follow more than law but also decency as it pertains to the industry and those involved in it. Lastly is philanthropic responsibility, which refers to the organization giving back, usually financially, to the communities that it serves, or even beyond that. Personally I believe that these four philosophies should be practices by public firms. These elements help create goodwill within the communities and markets they serve. IN 2021 where social initiatives have never been more at the forefront, being proactive to that movement and adhering to these responsibilities can really have a positive impact to the organizations. The younger generations which will be the turning over the aging work force want to work for and support companies that have a solid foundation of making a positive impact in the communities. This will help them find better talent, it will help them secure investors, it will help them draw loyal consumers. People want to support companies that are viewed positively and these responsibilities help build that trust and positivity. Rothaermel, Frank. Strategic Management. McGraw-Hill Higher Education (US), 2020. [Columbia College]. Corporate social responsibility is the obligation or the responsibility that a corporate firm possesses in relation to the society in which it is operating. In the modern business environment, almost all organizations, both private and public, has their own CSR policies and procedures. When considering CSR, it has four important components. They include ethical actions, legal aspects, economic interests, and philanthropic responsibilities. ABC is a public firm that operates as a not-for-profit, but for society. The operations of the public organization ABC should be bound to its core values and should reflect the ethical perspectives. For example, the provisioning of compensation, recruitment process, etc should be measured based on ethical perspectives. If it reflects any sort of discrimination here, then it fails to be responsible. Similarly, if the organization fails to meet the legal aspects prevailing in the market then also its credibility will be lost in relation to CSR. When considering the economic perspective, the public organization ABC should focus on meeting the demands and the interests of the shareholders and the stakeholders in order to be integrated into CSR policies. Taking actions in relation to the improvement of the society in which it is operating shall not also be eliminated in order to be obligated to CSR policy. If an organization has to be obligated to CSR policies and procedures, it will have to compile with all the four components of the CSR. Reference: Rothaermel, F. (2020). Strategic Management. [Columbia College]. Retrieved from https://ccis.vitalsource.com/#/books/9781264103713/ 
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