Corporate Social Responsibility

In the twentieth century money is not the most important element of a social and economic activity and people work not only for the wage but also to get the sense of the fulfillment. For example, the volunteer workers in non-profit organizations normally say that they are satisfied with working there because they feel they are contributing for their society. The public standard of judgment on the field of business will be shifted from the profits they make to whether they are trying to contribute for the society or not. Therefore, businesses should vigorously participate in social activities beyond their profits and it can be accomplished by practicing social responsibility. This essay will present why businesses should take social responsibility by applying several theories, and their examples. Firstly, I will introduce a few critics against social responsibility and the problems they point when it is employed. Then, I will discuss the reasons why people generally believe businesses should perform social responsibility. And the brief introduction of social responsibility category will be followed. Finally, I will consider the necessity of corporate social responsibility in terms of the discretionary responsibility and provide several New Zealand companies as examples.

Generally people think that businesses are ‘the organizations which are built for creating profits’. From this perspective businesses are judged from how much money they earn. So people consider the profitable companies to be contributive to the prosperity of society and fulfill the role as members of society. Contrarily, the companies which make losses are regarded to waste limited resources as a result of inefficient management which does not have any positive effect on the society and its members. In reality, a company’s bankruptcy can have an enormous negative influence. Immediately its employees lose job and the investors and shareholders lose their money. Especially, if a bank invested the company, it can lead the bank