CORPORATE SOCIAL RESPONSIBILITY
Social Responsibility Definition and Motivation
Corporate Social Responsibility (CRS) can still be a controversial topic. CRS is a commitment made by a corporation to develop and adhere to policies that are socially responsible in areas of work, community welfare, ecology, human rights, and family life. Today’s businesses realize an ingredient in being successful is through respect and confidence of their customers. A company can obtain respect and confidence through being socially responsible.
Through social responsibility corporations manage their business processes to produce a positive impact on society. The growth of easing problems in ...view middle of the document...
There are regulating agencies to help ensure companies are socially responsible known as “The Big Four” regulatory agencies. Between 1969 and 1972, the Occupational Safety and Health Administration (OSHA), the Equal Employment Opportunity Commission (EEOC), the Consumer Product Safety Commission (SPSC), and Environmental Protection Agency (EPA) were founded, creating “The Big Four”. Companies thinking of social responsibility changed after the development of these agencies. Due to regulatory demands required to be complied with, companies became socially responsive. Corporate executives during the beginning stages, communicated to their management and employees Corporate Social Responsibility (CSR). However, it took a period of time before CSR policies were as widespread as they are in today’s corporate world.
Implementing CSR in any corporation can and will bring about many positive impacts to society and the environment. Having such a positive impact, one would believe there to be no opposition to CSR. However, some shareholders even though not opposed to CSR, have an interest in how their money is being invested and spent. These shareholders feel the corporation itself should be held accountable to them on how and where these funds are being allocated. CSR may initial seem as an oxymoron in the sense that CSR suggests that a company’s responsibility to society can take priority over the company making a profit for its shareholders.
In corporate law, managers and directors of publicly traded companies must always put their shareholders’ financial interest above any other interest. These other interest is to include; social interests, environmental interest, employee’s interest, the public’s interest, or consumer’s interest. There is no true incentive for companies to put their shareholders’ financial interest above all other considerations. In today’s corporate world, some companies only have responsibilities to their shareholders; however, they have responsibilities to their employees, customers, suppliers, possible potential investors, and the supervisory body representing society as a whole.
Corporate Social Responsibility is priority for many major corporations. CRS is how companies manage the business process to produce an overall positive impact on society. Starbuck’s Coffee has continuously demonstrated an immense commitment to their social responsibilities, looking in depth you can see that commitment. Starbuck’s Coffee happens to be one of the most profitable coffee companies to be created to date. The company has built lasting relationships with coffee growers to enable their customers to experience the finest beans from around the globe. Starbuck’s as a company continues to grow nationally and internationally, so does the need for world-class coffees. As a leader in the global coffee community Starbuck’s wants to promote and protect the economic well-being of the farmers who produce these world-class coffee beans....