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Essay Samples > Business > Corporate Social Responsibility
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Corporate Social Responsibility

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When it comes to the business, nothing is to be assumed in the 21st century, as there are more variables that organizations have to consider than just the contemporary demand and supply needs. Business in the 21st century relies on the research rather than availability of the market. While considering the manufacturing of products, the customers to buy the products are available but buying the products depends on a number of other variables. Reflecting on the energy used, most companies have to be keen on the amount of carbon dioxide released by the type of fuels they use or risk fining by regulation bodies. This movement towards responsible behavior by companies has been debated for a number of years while some people disregard the responsibility by companies as corporate suicide (Tine 2012).

Reviewing the article, Why companies can no longer afford to ignore their responsibilities, it is noticeable that various people with various qualifications in business and economic administration have disregarded this aspect of business operations (Tine 2012). For example, Nobel laureate Milton Friedman argued on a published article that corporate social responsibility was a hypocritical window-dressing. The assumption that Friedman was immensely misinformed may fall short of proving beyond reasonable doubt, but his argument cannot be substantially true. Social responsibility is not an event that business organizations invite people to feel cared for; instead they are aspects that affect the society as a whole. In another example Eric Orts, a professor of business ethics and legal studies, argued that corporate social responsibility was an idea that needed upgrading as it was the old-fashioned one. With regards to Eric’s argument, it is clear that people are starting to realize that CSR is a requirement that various organizations needed to incorporate into their operations before things could escalate further downwards (Arendt & Brettel, 2010).

However, without reflection on the opinions of various business analysts, it is clear that business has been changing from time to time. During the 1920s, the customers and organizations would have cared less of corporate social responsibilities as attention was on the development and not ethics of getting there. However, times have changed; companies are owned by thousands of individuals referred as shareholders, and there are target markets that are dominated by various small and large scale competitive organizations. In this case, it is no longer about what the company is offering but rather how much effect it has on the shareholder value and the number of customers it is attracting. However, considering that organizations thrive towards delivery of satisfactory responsible results to the customers at a profit while, at the same time, observing shareholder value, one would wonder why corporations use strategies that consider stakeholders rather than customers and investors (Arendt & Brettel, 2010).

To access the above scenario, one would use a real life situation upon which the customer and shareholder are equated to be as important to the organization. In this consideration, the customer has to be lured or convinced that products and services are safe for use before they can purchase them. On the other hand, the shareholder needs a guarantee that the organization cannot grant without having to consider one entity over the other. In this case, while recession and financial crises are problems affecting organizations, they also affect customers and this results in the reduced spending and low returns. However, whether the organization incurs loss in low profit returns, the shareholders require that organization must keep the value of their investment. Customers, on the other hand, would still choose which organization to buy from in crisis times, while, at the same time, arguing. In this case, corporate social responsibility is a marketing strategy aimed at convincing customers that at least somebody cares inspite of the pressure crises may create – a type of psychological warfare by organizations to win the customer confidence (Arendt & Brettel, 2010).

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