Corporate Social Responsibility or CSR is the duty held by a company to ensure that it influences members of staff, society and the natural world in a positive manner. It is quite similar to an independent and basic procedure with regard to its actions, taking the aid of which an industry oversees and attests to its active obedience towards ethical values, global traditions and the essence of integrity.
Importance of CSR
As more and more global concerns are coming to the forefront, most corporations have taken steps to see to it that none of their workers has to face any sort of exploitation in any corner of the world. They have also managed to comprehend the advantages that CSR programs provide as is obvious from the large portion of the general public who take the conscience of a company into account when trying to decide upon whether to buy the item manufactured by a particular company or not. Similarly, the companies, which set up their base of operations in a third world country, should present beneficial schemes for local residents including educational institutions, job prospects and healthcare.
Flaws in the CSR Structure
The effects that a particular CSR program might have on society, however, cannot be effectively determined. A responsible idea such as setting up a school in a foreign land for the kids of employees working there might be helpful for them but consumers purchasing the company’s goods may not be aware of this scheme. Consequently, it does nothing to add good influence to the image maintained by the corporation.
Companies, which uphold international regulations, go unnoticed by the public. However, as soon as the company breaks a single law, the media airs the news widely. Thus, corporate social responsibility is useful to a company only if people are aware about it. Thus, it is understandable why many corporations aim to publicize their charity work in order to gain profits or some amount of recognition in return. A company that presents a caring and responsible image opens itself up for a lot of positive attention, which automatically translates into good business. The number of people seeking to work with the brand goes up drastically and consumers feel it would be worth buying products from them.
The positive effects of CSR have led many corporations to include it within the mainstream PR mechanism and not consider it just an additional expenditure. However, this does in no way mean that the model CSR is immune to any sort of criticism. In fact, there has been a considerable amount of criticism against the motives of corporate social responsibility from noted activists who feel that it is just another front for corporate exploitation.
Factors for Criticism
Many concerns have been voiced against the program of CSR such as its purpose and its link with the vital factual and objective features of trade. These points have been debated upon by both its opponents as well as its proponents.
A number of critics are present who have observed Corporate Social Responsibility or CSR to be in contrast with the fundamental disposition and meaning of the financial industry and regard it to be a hurdle to the method of free trade. They all consent to the fact that corporations should be bound closely by the rules of the countries within which they tend to function; however, these critics strongly support the notion that businesses do not have any erstwhile responsibility to the environment and society.
Some back the idea that Corporate Social Responsibility contrasts with private enterprise and support the concept of free trade. These individuals maintain that developments made in the field of healthcare, child mortality and/ or longevity have been made feasible because of the economic expansion attributed to free ventures. This argument has been met with strong criticism from some portions of society who see the idea of free trade as being against the notion of the fundamental freedom of an individual and the good of society. According to them, the residents of nations who indulge in capitalism face far greater risk of exploitation from multi-national corporations.
CSR does, however, provide more power and control in the hands of companies, which are responsible for making vital decisions due to its fundamental character, which is voluntary and lacks any sort of official regulation. When such companies are handed the reins of shaping CSR programs according to their discretion, critics feel that this tempts them to try to abuse that sort of power. However, if handled in the right way, the same companies may use their brand power and size to do good rather than harm.
Criticism against CSR as a Marketing Technique
There are also those critics who are of the opinion that CSR or Corporate Social Responsibility programs are started by corporations who wish to divert the attention of the public from the ethical questions posed by their basic operations to other positive aspects of the industry. They strongly believe that these CSR programs provide them with the opportunity to increase their status in the eyes of the masses or with the official administration. There are a number of implications made against the businesses, which concentrate solely to make sure that their profits can get a nice boost and prove to be inept with regard to handling or fulfilling the issues, which matter to society.
Methods for Improvement of CSR
The critics who seem to wary about the two-facedness and superficiality of industries generally approve of developed global and administrative regulations and enforcement without resorting to voluntary means. They deem the first approach to be important to ensure that companies act in a manner, which would seem responsible towards society. A vital portion of indispensable worldwide guidelines is the decline in the ability of conglomerates to proceed with legal conflicts against states under the terms of the shareholder state dispute settlement in trade or investment settlements, if otherwise indispensable to public healthcare or safety legislation for the environment which has put business investments in a vulnerable position.
