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NEW ADVANCE IN BUSINESS

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Running head: NEW ADVANCE IN BUSINESS 1
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According to Idowu and Leal (2008), Corporate Social Responsibility (CSR) is a
management concept whereby, businesses behave ethically so as to integrate social, economic
and environmental concerns in their operations while interacting with their stakeholders. As a
result, it improves the quality of life of the workforce, community and the society. CSR concept
is mainly a voluntary contribution from an organization so as to attain a clean environment and a
better a society thus attaining sustainability.
The UK is one of the world leaders who have contributed in the development and
implementation of CSR over the years. In 1999, the UK parliament amended the 1995 Pension
Act whereby, the act required all organizations to put consideration on social, environmental and
ethical behavior factors in their investments. In addition, a Minister for CSR was appointed, in
2000, within the department of Trade and Industry. Moreover, the government promoted debate
on CSR by launching a CSR-dedicated website (www.societyandbusiness.gov.uk). In June 2003,
the UK government further promoted CSR with the introduction of the UK Corporate
Responsibility Bill and announced consultation on draft regulation in 2004. The draft required all
company’s stock exchanges to include social and environmental performances in their Operating
and Financial Reviews (Mullerat & Brennan 2011).

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NEW ADVANCE IN BUSINESS 2
For a business to strengthen its relationship with its stakeholders, entrepreneurs put
together highly structured business plans that show optimistic market share projections. This is
achieved with the integration of CSR while designing their business models. The CSR helps in
promoting business activities that bring simultaneous economic, social and environmental
benefits. In addition, it encourages innovative approaches and fosters development among the
organization. Thus it provides a policy framework that encourages and enables responsible
behavior and in the process improves the relationship between the stakeholders and the business.
CSR is a policy based on moral values that help in achieving social sustainability.
However, according to May et al (2007), it has various advantages and disadvantages to the
companies and the general public at large. The advantages include; (1) helps in overcoming
various social and environmental challenges faced by an organization. (2) It helps in improving
staff relationship with each other thus, makes the company remain competitive. (3) It builds a
genuine culture of doing the right things hence, builds a desirable corporate reputation. On the
other hand, the CSR disadvantages include; (1) it threatens the prosperity in both the poor
countries and the rich. (2) It undermines the market economy thus reducing competition and
economy freedom. (3) CSR may also cause deviation in a company’s main objective of
achieving exceptional economic goals in the attempt of satisfying the environmental and social
factors.
There is a positive link between a social and financial performance among organizations
thus, the adoption of CSR in companies greatly elevates their performance in the market. This
can be best outlined in terms of financial status and competitive shares in the market. As per
CSR ranking of 2003, it was observed that the companies who practice CSR do better than the
other companies in the market (Hopkins, 2003).

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Running head: NEW ADVANCE IN BUSINESS TO: FROM: DATE: SUBJECT: According to Idowu and Leal (2008), Corporate Social Responsibility (CSR) is a management concept whereby, businesses behave ethically so as to integrate social, economic and environmental concerns in their operations while interacting with their stakeholders. As a result, it improves the quality of life of the workforce, community and the society. CSR concept is mainly a voluntary contribution from an organization so as to attain a clean environment and a better a society thus attaining sustainability. The UK is one of the world leaders who have contributed in the development and implementation of CSR over the years. In 1999, the UK parliament amended the 1995 Pension Act whereby, the act required all organizations to put consideration on social, environmental and ethical behavior factors in their investments. In addition, a Minister for CSR was appointed, in 2000, within the department of Trade and Industry. Moreover, the government promoted debate on CSR by launching a CSR-dedicated website (www.societyandbusiness.gov.uk). In June 2003, the UK government further promoted CSR with the introduction of the UK Corporate ...
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