Corporate Social Responsibility as an essential element to sustain a business

P

Polly Pure Bread

#1
What are your thoughts about Corporate Social Responsibility as an essential element to sustain a business?
 
Elsmar Forum Sponsor

Chennaiite

Never-say-die
Trusted Information Resource
#2
Re: Corporate Social Responsibility

Corporate Social responsibility to sustain Business?
Sounds good. But today, How many Organization think about Society, unless otherwise they are bound by some Government regulations such as emmision norms, restricted materials, etc.
But then, there are cases of bigwigs whose mere presence would do or has done world of good for the Society. Where do you fit it, if not Corporate Social Responsibility?
Thanks.
 
R

Richard Pike

#3
Re: Corporate Social Responsibility

Corporate Social Responsibility is fast becoming an essential element to get business in the first place. Its a tool to keep certain stakeholders happy. (customers, employees, general public) It is often imposed on suppliers by larger customers, more often than not in support of their own corporate image.
 
P

Polly Pure Bread

#5
Re: Corporate Social Responsibility

Do you have any doubts ? :)
No doubt, I think it’s a new way of doing business that puts sustainability above profit-making.

Toyota is building hybrid cars and developing battery-powered vehicles not because they are environment-friendly but because that’s where the money is.
 

Ajit Basrur

Staff member
Admin
#6
Re: Corporate Social Responsibility

No doubt, I think it’s a new way of doing business that puts sustainability above profit-making.

Toyota is building hybrid cars and developing battery-powered vehicles not because they are environment-friendly but because that’s where the money is.
Thats true dQ :D

CSR is becoming an integral part of an organization similar to Quality Management System
 

Sidney Vianna

Post Responsibly
Staff member
Admin
#7
Re: Corporate Social Responsibility

CSR is becoming an integral part of an organization similar to Quality Management System
I believe that, just like quality management, the enlightened organizations have been embracing their responsibilities towards stakeholders other than owners and shareholders, but they are a small minority. Most organizations deliberately ignore the social, environmental and societal impacts of their operations, until an extrinsic motive forces them to. What is the percentage of organizations reporting triple bottom line results, for example?

Unfortunately, just like in the case of quality management, we run a risk that most organizations will perceive CSR as marketing initiatives, instead of truly embracing the sustainability spirit.

And worse, we, as consumers, are to blame for a lot of the problems because we prefer to ignore the reality of the supply chains which allows us to buy inexpensive goods.

I don’t think any organization would place sustainability ahead of profitability in their list of priorities, especially because Maslow’s hierarchy of needs also apply to companies. But those organizations which are concerned with long term sustained success (see ISO 9004:2009) will realize that business objectives need to be balanced and, while profitability is crucial, social, environmental and societal expectations will play an increasing role in determining an organization’s long term viability.
 
P

Polly Pure Bread

#8
Re: Corporate Social Responsibility

I believe that, just like quality management, the enlightened organizations have been embracing their responsibilities towards stakeholders other than owners and shareholders, but they are a small minority. Most organizations deliberately ignore the social, environmental and societal impacts of their operations, until an extrinsic motive forces them to. What is the percentage of organizations reporting triple bottom line results, for example?

Unfortunately, just like in the case of quality management, we run a risk that most organizations will perceive CSR as marketing initiatives, instead of truly embracing the sustainability spirit.

And worse, we, as consumers, are to blame for a lot of the problems because we prefer to ignore the reality of the supply chains which allows us to buy inexpensive goods.

I don’t think any organization would place sustainability ahead of profitability in their list of priorities, especially because Maslow’s hierarchy of needs also apply to companies. But those organizations which are concerned with long term sustained success (see ISO 9004:2009) will realize that business objectives need to be balanced and, while profitability is crucial, social, environmental and societal expectations will play an increasing role in determining an organization’s long term viability.
You’re right, Sidney. The capitalistic economies view is different - the sole responsibility of business firms is to create economic value for their owners—that is, to generate profits. Apart from this institutionally mandated role, business corporations do not have any other responsibility to society. Moreover, as social institutions, business firms are not subject to the same ethical norms as individual members of society are —including corporate CEOs and board members. What Warren Buffett does with his life—and the wealth he has accumulated—is entirely up to him.
 
#9
Re: Corporate Social Responsibility

Hi,

It is good you brought Milton Friedman into this discussion. If the corporation's interest is to serve its SHAREHOLDERS with optimum (not maximum) returns now and for a long term in the future, then Sustainability (or Corporate Social Responsibility, which I consider as equivalent to Sustainability) is indeed required to improve the bottomline.

Of course while improving the finanacial bottomline, for survival and growth, companies need to look at environmental and social bottomlines to avoid risk arising out of environmental (legal and others) and social (acceptance and other) issues in the immediate, near and far future.

In this sense, Sustainability does not differ much from Milton Friedman's arguments. His concern, which was based on sound logic, was that the Manager who runs the company cannot decide as to what to do with the money earned from Shareholders' investment; it is for the shareholder to decide whether to spend a part of the earning on society.

If the corporate board (which is the trustee of the shareholders money and which represents shareholders) decides to take the path of Sustainability, I don't see any conflict with Milton Friedman's arguments; the company decides to improve its environmental and social bottomlines as a strategy to improve its opportunities to make more money and reduce its risks to sustain the company for a long time to come.

Hence if Sustainability/CSR is approached as a strategic subject, with the top management commitment, I do not see any "cosmetic" programmes, based on the wish of the manager (which are cost to the company), coming up and draining shareholders profit.

There should be a realization that "there is no difference between Business and Responsible Business"; only then the corporation can be competitive. Of course DJSI and FTSE4GOOD indices do indicate that Sustainability as a business strategy does attract investment in such companies more than those which have not embraced Sustainability.

(please see my blog in this forum on 10 commandments of Sustainability for my understanding of this term)

With kind regards,

Ramakrishnan
 
Last edited:
P

Polly Pure Bread

#10
Re: Corporate Social Responsibility

Actually commitment to CSR has now become widespread in the corporate world. Many organization mentions CSR in its vision statement. The level of commitment varies among organizations, ranging from mere lip service to being fully committed to serving the needs of society in some way or another.
 
Thread starter Similar threads Forum Replies Date
D Whither Corporate Social Responsibility Imported Legacy Blogs 2
P What is the status of, and requirements of Corporate Social Responsibility Other ISO and International Standards and European Regulations 2
somashekar Driving CSR (Corporate Social Responsibility) Performance down the Supply Chain Supplier Quality Assurance and other Supplier Issues 8
D Tobacco and CSR (Corporate Social Responsibility) Imported Legacy Blogs 2
N SA 8000 Awareness contribution to Corporate Social Responsibility slides request Other ISO and International Standards and European Regulations 3
D Sustainability and Corporate Social Responsibility Sustainability, Green Initiatives and Ecology 18
S Advantages and disadvantages on IATF corporate scheme IATF 16949 - Automotive Quality Systems Standard 2
L Have been purchased by a corporate company ISO 13485:2016 - Medical Device Quality Management Systems 7
Ajit Basrur Corporate management standards ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 4
B Advantages of a corporate certification scheme IATF 16949 - Automotive Quality Systems Standard 8
U IT Process is Taken From company and Added to Corporate Structure ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 4
N IATF 16949 - Mandatory Corporate Documents IATF 16949 - Automotive Quality Systems Standard 10
julsbear Corporate Services as Externally Provided Service IATF 16949 - Automotive Quality Systems Standard 1
J What does "Corporate stewardship" mean? IATF 16949 - Automotive Quality Systems Standard 6
S Corporate Quality Manager keeping me out of the Management Review Meeting Management Review Meetings and related Processes 28
sutie What is Ethics Escalation (“Whistle-Blowing”) Policy - Corporate Responsibility IATF 16949 - Automotive Quality Systems Standard 7
L Corporate Manual - Global Multi-Site ISO9001:2015 Certification ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 6
J Supplier is dictated to us by corporate Supplier Quality Assurance and other Supplier Issues 5
K Gage Calibration - Corporate Scheme IATF 16949 - Automotive Quality Systems Standard 3
RoxaneB Fighting Corporate Memory Loss Training - Internal, External, Online and Distance Learning 7
C ISO9001: Moving from site certification to corporate certification Quality Manager and Management Related Issues 9
G Setting up a corporate umbrella QMS ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 4
S Internal Audits of QMS Corporate Basics at the Local Plant Level ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 2
R Steps to Preserve ISO 9001 Certification during Corporate Acquisition? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 3
R Question on Corporate Audit Scheme IATF 16949 - Automotive Quality Systems Standard 1
D How do I make the Corporate QMS work in the manufacturing setting? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 9
N Corporate direction - External Auditor Influenced by Corporate Management ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 13
J How to calculate Surveillance Audit Days in Corporate Audit Scheme IATF 16949 - Automotive Quality Systems Standard 4
C Audit of the Corporate Audit Program 21 CFR Part 820 - US FDA Quality System Regulations (QSR) 2
Q TS 16949 Manufacturing Site uses ISO 9001 Corporate Laboratory IATF 16949 - Automotive Quality Systems Standard 2
Y Can't meet PEAR goals because of Corporate MGMT... Quality Manager and Management Related Issues 10
U Customer Audit Nonconformity on Internal Audit Program done by Corporate QA General Auditing Discussions 19
Sidney Vianna Cleaning up the Global Compact: Dealing with Corporate Free Riders Sustainability, Green Initiatives and Ecology 2
Q Management Review Inputs - Production Site under a Corporate Certification Scheme Management Review Meetings and related Processes 9
M Corporate Procedures and their effects on Companies they Own Quality Manager and Management Related Issues 6
B Corporate Goal about ISO 9001 Registrar Audits ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 8
G Corporate Documents cover local facility - How many departments can I exempt? Document Control Systems, Procedures, Forms and Templates 3
C 9001 Corporate Quality Audit - Yearly Audit on the Individual Business Units General Auditing Discussions 4
V Corporate Quality Management System - Structure, Pros and Cons? Quality Manager and Management Related Issues 3
J What are the Processes under Strategic Corporate Planning ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 2
C Control and Revision of a Corporate QA Manual ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 4
M ISO 13485 Multiple Site Registration - Corporate HQ is listed as a subsidiary ISO 13485:2016 - Medical Device Quality Management Systems 4
Q Spin Off and Divestment from Corporate - What to expect Quality Manager and Management Related Issues 10
M Mixed Use of Corporate and Site Level Procedures and Forms in the Quality System ISO 13485:2016 - Medical Device Quality Management Systems 1
Stijloor The Road to Corporate Responsibility: An Automotive Conference World News 0
Marc WikiLeaks Julian Assange Wants To Spill Your Corporate Secrets World News 6
T What is difference between a Corporate Quality Manual and TQM? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 3
J ISO9001 and Corporate Governance - ISO 37000 being developed to guide standardized Corporate Governance (updated thread March 2019) Other ISO and International Standards and European Regulations 12
K Corporate Volunteer Policy examples wanted Misc. Quality Assurance and Business Systems Related Topics 9
N New Seven Management Tools - Corporate Objective - Achieve 20% sales increase Misc. Quality Assurance and Business Systems Related Topics 3

Similar threads

Top Bottom