Corporate Social Responsibility

1. What does it mean?

Corporate Social Responsibility is a company's sense of responsibility towards the community and environment in which it operates. This concept applies to those businesses that consider the interests of society by taking responsibility for the impact of their decisions and activities on customers employees, communities and the environmnet.

2. Why is it a common objective in business?

The reasons why objectives that focus on social responsibility are very important and common for business organizations are that they maximaze short-term sales revenue and shareholder value. Maximasing short-term sales revenue = managers and stuff benefit when salaries depend on sales revenue levels. Maximasing shareholder value = Interests of shareholders are above those of other stakeholders.

3. Positive example. 

-less unemployment

-customers can choose from more services and products, bigger choice

For example: Recycling

 



4. Negative example. 

- pollutions, destroying the environment 
- if increased sales are achieved by reducing prices, the actual profits of the business might fall.
- McDonalds