Corporate social responsibility Essay Example | Topics and Well Written Essays - 750 words - 1

Corporate social responsibility - Essay Example lity (CSR) in brief as â€Å"CSR is about business giving back to society†, and in detail as â€Å"the continuing commitment by business to behave ethically and contribute to economic development, while improving the quality of life of the workforce and their families as well as of the local community and society at large† (Mallenbaker.net, 2006). CSR is a broad principle involving the way a corporation manages its business processes to provide an end-to-end beneficial effect on society. Business entities are required to consider the quality of their management related to both people and processes, and the type and amount of their social impact in different areas (Mallenbaker.net, 2006). CSR is very similar to the concept of Sustainable Development which requires that corporation decisions should consider social and environmental effects, in addition to economic matters such as profits and dividends (Wikipedia, 2006). CSR suggests that corporations have a duty of care to all of their stakeholders while carrying out their business functions. Stakeholders are those individuals or organizations that have legal interest in the corporation; they are influenced by the corporation’s decisions and actions, while also having the power to influence such decisions and actions. The most important stakeholders are shareholders; other stakeholders include employees, clients, suppliers, community organizations, subsidiaries and joint venture partners (Wikipedia, 2006). CSR is beneficial to the corporation in several ways (Wikipedia, 2006). First of all, it gives the corporation a clean image of having the benefit of society at large in mind, rather than being only interested in making profits for its shareholders. Secondly, the corporation’s reputation and its brand power are strengthened; this is because consumers are increasingly checking the CSR behavior of the corporations from which they purchase their goods and services. Thirdly, chances of investment in the