Social Responsibility and Entrepreneurship
Topic 1: Social Responsibility
Synopsis
The article Corporate Social Responsibility and Morality of Profits by Switon W. Hudson focusses on if these aspects ought to be adhered to and used in a business entity.
Summary
The article says the ignorance of corporate social responsibility and being keen on the return on investment is not good business and morally wrong. The legitimacy of social responsibility is based on ethical, and strategic aspects that may relate or work autonomously. In this regard, companies have to avoid harming other stakeholders as they make sure that an appropriate return on investment of stockholders. Hence, social responsibility is beneficial for business and to allocate focus on profitability will adversely affect both internal and external stakeholders. The most significant thing is to have a balance between social responsibility and return on investment that is great to stockholders and stakeholders.
Discussion
Corporate social responsibility and morality of profits are applied differently in companies. Through the manner they are applied, it accords them efficiency and success. It however, has a number of down sides that arise from shift in focus like using profits to manage social responsibility. The CSR has both beneficial and adverse effects. The morality aspects of profits that arise are the enhancement of efficiency of production process for a decline in pollution and costs as well as differentiate products with regard to their settings and social aspects.
An instance is a case of Australian manufacturer – AusMake, a leader in corporate social responsibility. However, the profitability focus on the operation of CSR led to the fall of other elements of responsibility like working conditions of employees. The company went after CSR in varied ways that upheld its economic objectives. In an extensive period of time, the company limited its environmental emissions in its centers.
The corporate responsibility program is an integrate part of the business strategy. Its success is reliant on a number of issues among them economic and social elements. This as shown in the case, has the ability to drive a company to success.
A company’s environmental efficiency allocates companies a moral comfort to acquire their target cost. Heads of companies look to acquire their targets aggressively claiming a moral aspect. The social responsibility of staff ought not to be seen to a way to acquire profit, but profit should be seen as a way to acquire social responsibility.
There is a paradox that arises to employees who work in companies with keen responsibility. Employees are made to align themselves to a company’s financial focus as it connects to moral emission. Employees who criticize the workloads and decline in working state are labelled as unsupportive. Social responsibilities is acquired as a way bringing down criticism of an organization’s objective. The paradox arises when appreciation is accorded to CSR while others forms of responsibility were compromised.
There is however, a negative side to social responsibility, it may issue managers an added sense of morality as they look for profit. Remarkably, this may act as a way that social responsibility operates. It does not just acquire ethical sources of profit, it creates the very pursuit of profit a moral one. Through this, it offers companies a ‘moral’ obligation to go after profit at any cost and avoid any breaches of responsibility that may follow. This works best with all members of the company taking part in the strategies put in place.
Topic 2: Entrepreneurship
