C
orporate Social Responsibility
Learning objectives: Create awareness that how business decisions might affect the interests of stakeholder groups.
Case:
Corporate social, ethical and
environmental awareness has become essential for businesses. Companies
are liable to consider the interests of all stakeholders
while performing their activities and making decisions. Business
operations should not be exclusively focused to meet the objectives of
shareholders and investors; which is the maximization of profit.
Corporate must adopt a wider perspective when setting their objectives.
The concept of corporate social responsibility explains us to assess the
social impact of a business; it covers pollution levels, usage of
energy, reprocessing and recycling rates, contributions to
community, employee benefit programs and customer satisfaction. Business
operations and decisions may have positive and negative impact on
customers, employees, suppliers, community and environment.
Some typical business decisions in real world are as follows:
a) A business is planning for large expansion by building a new factory.
b) Application of technology into production and business processes
c) Business uses solar energy to run some operations.
Requirement:
Being
the student of business education, you are required to analyze the
likely positive and negative effects of these decisions on employees,
customers and society at large (community).
