In most cases, the shareholders focus on what the corporation has done, either positive or negative relative to its impact on society (Subhabrata, 2007). Additionally, the shareholders show interest in how the corporation develops and takes care of its workforce. Thus corporate social responsibility can be simply defined as the capacity of a company to build protractible livelihoods. The company upholds the cultural differences of the locals and finds opportunities in developing skills of employs, the public and the government thus gives back to society. In fact, this model is much more convincing mainly because a) Social responsibility forms an integral part of the society’s wealth creation process, which enhances the competitiveness of a business hence maximization of wealth creation in society. b) In tough economic times, there are incentives to implement corporate social responsibility and better as compared to other corporate social responsibility models. However, corporate social responsibility has had a philanthropic definition in the United States. In the philanthropic model, companies earn profits, unhindered with the exception of fulfilling their taxation responsibility. Then the companies give a certain amount of funds, which is a percentage of their profits as a donation to support charitable activities. Nevertheless, corporate social responsibility has been defined in a different model referred to as the European model that is more oriented in how business is executed in a socially answerable way, harmonized by the investment in the local communities for justifiable business reasons. It is noteworthy that different corporations implement corporate social responsibility differently due to their varied nature of business. Depending on business priorities and core values, corporate social responsibility is manifested in the form of incentives and the business processes. Existing literature on corporate social responsibility has associated this practice to ethical ad moral conduct of business. Thus corporate social responsibility is perceived as an obligation not only to the law but also long term aims for the good of the community, which the business serves. In this sense, corporate social responsibility involves carrying out business in an ethically acceptable way in the interest of the society at large (Thomas, 2007). Thus a corporation is expected to: Respond in appositive in regards to emerging societal priorities and prospects Willing take measures ahead of regulatory conflict Balance the interest of the shareholders against the interests of the society The main facets of corporate social responsibility: Economic responsibility to generate profit for the corporate owners Legal responsibility to strictly comply with all regulatory requirements Ethical responsibility not only to generate profit, but also act in just and a fair in business processes Voluntary and philanthropic responsibility to uphold human welfare and helpfulness In this paper, my chief focus on how the new policy published by the European Commission for the 2011-2014 action agenda has impacted business reorganization by the corporations so as to implement corporate social responsibility. The new policy was introduced to enhance a better alignment of European enterprises to better corporate socialresponsibility approaches.
Corporate Social Responsibility and Business