Definitions of CSR and Corporate Sustainability †Free Samples

Question: Discuss about the Definitions of CSR and Corporate Sustainability. Answer: Introduction Over the decades, the society has created room for business growth by supporting the institution in many ways. Any business requires all its stakeholders to succeed in their operations. Business and community share a close connection that each one cannot do without the other due to the benefits that each one of them produces. Any profit making activity regardless of its size or nature is considered to be a business, and it requires a suitable environment to mature. It is therefore by these observations that research concludes that business and society are interdependent. The contemporary culture encourages the institution of business making it become the most influential among the population. A business can be described as any organization whether small or huge trading goods and services to its customers with the aim of making a profit. The most common forms of businesses include sole proprietorship, partnership, and corporations. They all differ from each other depending on the methods of ownership, the distribution of roles, benefits and losses and also the factors surrounding their resolution (Aupperle 2005). The business environment is highly interdependent with the society due to the sectors that the two share. A company will require employees, raw materials, and market which is provided by the community, while the same society in return will need the goods and services and the general development of the environment. Businesses, therefore, put into considerations all the factors that enable them to equally serve all their stakeholders according to the order of their importance. According to (Roman 2009. )Most managers work towards ensuring that they satisfy their consumers, employees, suppliers and investors, community and also the government. It is therefore important for all business organizations to understand that every decision they make might affect the economy in a great way. Individuals, groups, and organizations are networked in such a way that they make a system known as a society. These people or groups in this case then form some social structures to make their relationship better. There are so many people that connect people to create a society including religion, the background of origin, education, and business. The society depends on business to a great extent in the effort to bring progress in all sectors of life (Peterson 2004). Business is part of the community and in this way interdependent. Changing Relationship between Business and society As mentioned earlier, business is part of the activities that the society cannot do without and therefore their relationship is something to consider. Over the years, due to the occurrence of different issues, the relationship between business and the immediate society has also experienced some change. These questions revolve around stakeholders comfort to globalization and the code of ethics. All around the world, the societal views concerning the institution of business are changing by the day. Earlier on before the increased existence of a market, people thought of it as a miracle to the society due to the kind of benefits that came along with it. However, that mentality has changed, and now the society expects more from an organization apart from just the regular duties (Margolis 2003). Any community now expects businesses to be more responsive to the environments close to it. The responsibility revolves around the issue of respecting all their stakeholders as they are essential to the success of any business. Consumers expect the kind of treatment that they deserve regarding the quality offered, the services and communication. The community expects that all the activities that the business conducts will have a consideration to the well-being of all issues (Rauch 2007). These demands are changing so fast that there are even rules of the stakeholders who would love to h ave their voices heard. Ethics is the set rules or codes of conducts that individuals in a particular setting are expected to follow. They are set according to their applicability in the particular society, and those who do not follow them are considered to be misleading and disrespectful. The public has grown more need to see business organizations conducting their activities according to the moral values of that environment. Earlier on, the community was not more involved in the work of the companies around them even if they affected their lives (Godfrey 2009). However, this situation is changing over time as there is now more emphasis on good performance. People expect the profit making organizations around them to consider the right and wrong behaviors that they engage into. Cases like the conservation of the natural environment that negatively affect the lives of people are highly discouraged (Van Marrewijk 2003). The authorities regulate waste disposal and the emission of fumes to the environment by companies. Violation of such like rules leads to heavy fining or even the closure of the organization. Two primary stakeholders, community, and government are usually the ones involved in the ethical conduct of a business enterprise (Schwartz 2001). Employees are also required in such a way they call for a fair job employment, promotions and other employee programs. Businesses are therefore more concerned about providing their stakeholders with satisfactory services. Safety is also a growing concern whereby any organization works hard to achieve at any point of their operation (Evans 2005. ). Be it during acquisition of materials from their suppliers, the working conditions they put their workers into or the goods they supply to their consumers, safety is usually a rule. The business field has created a code of ethics depending on the type of operation to ensure that they will not be liable for any cases that come up due to carelessness. The world is rapidly mingling on a business platform regardless of the location of the parties involved. Many organizations have expanded their operations across the borders which are an indication that their activities affect a bigger population. Multinational companies in Australia like Crown Resort have a more significant responsibility in their impact towards the society. Globalization brings about international links between the company providing the services and the rest that receive the operations (Crane 2016). There is, therefore, a need to consider the factors that affect a particular population and merge them into the functioning of any activity. In some countries, race, and religion play a major key in the community and therefore a company that locates its business in such a location has to consider these issues. They should ensure that the goods and services they provide are in correspondence with the values of the society. Some of the issues that a business operating globally should look into include, the struggles to fight HIV, equality battles that revolve around women and people of all economic backgrounds. Environmental conservation to reduce global warming is also a duty that an organization should be prepared to perform in the society (Matten 2004). Global issues are therefore something that any business cannot avoid as they can either positively or negatively affect their operations. Creating value in the environment With all the changing consumer, employee and society expectations of businesses, the issues surrounding the venture should be made in such a way that they favor the environment. These activities are meant to improve the state of an organization but end up benefiting the community even more (Lindgreen 2010). The value created means that the events that come out of the organization are expected to grow the immediate society as much as it benefits the firm. Recently, issues of technology have been encouraged all around the world due to its merits. Businesses adopt the modern technology to make their activities more efficient regarding quality and time consumption. The same advancements are also a plus for the environment as they cannot be limited inside a firm. Employees from the society use these technologies and later on spread them to the public hence creating shared value (Cadbury 2006.). Areas with fewer businesses are known to be less developed and advanced as they are not exposed to the factors of value creating activities. A stakeholder is a party that affects the running of an organization in one way or the other. They are all part of the community and their actions can either propel a business towards success or drag it to the lowest level. Stakeholders in respective of their importance to a business include, customers, employees, suppliers, community and the government (De Madariaga 2007). A company owes a great responsibility to them all and by doing so can keep their operations intact. Consumers are the most important stakeholders for business as they hold the highest power in the condition of any organization. Their decision to purchase or not is highly effective to the profits or losses experienced by a firm. A business enterprise, therefore, works hard to ensure that their consumers are satisfied to encourage their loyalty in return. According to (Delmas 2004), providing quality goods and services to the customers is a way of protecting the stakeholders interests. Employees are the second most important stakeholders in the existence of the business as they provide labor and expertise that leads to the progress of the company. They decide on the success of the firm by the way they conduct their duties. An organization, therefore, ensures for fair treatment of their employees to increase satisfaction among the team. They also provide employment related programs like training that are meant to enhance their skills and experiences. Suppliers and investors fall into a similar category of the stakeholders as they influence the availability of funds and raw materials (Ackermann 2011). The firm works towards making fair deals and giving them confidence in their operations The community is one of the most important stakeholders as the business depends wholly on the facilities like infrastructure that the community provides. It is therefore up to the organizations role to conserve the environment and deliver services as a way of giving back (Delmas 2004). Finally, the government plays a great role in enforcing regulations that govern business and in return, any organization should obey these laws as a way of playing a corporate responsibility. Conclusion In conclusion, any business in an individual society depends heavily on its stakeholders to succeed and therefore puts a significant consideration to ensure that they are all satisfied. Society should consider maintaining the most favorable environment those natures all types of business operations. Individuals and groups in a particular community should get involved in the maintenance of a pleasant surrounding for development. It is also important for them to open up and be ready to receive events that are brought about by business. Business organizations, on the other hand, should consider laying down all the strategies that encourage interaction with the society and hence make a positive impact. When and society works hand in hand, there is hope for development and progress shortly. Bibliography Ackermann, FAEC, 2011, 'Strategic management of stakeholders: Theory and practice. ', vol 44(3), no. Long range planning, pp. pp.179-196. Aupperle, KE,CABAHJD, 2005, ' An empirical examination of the relationship between corporate social responsibility and profitability. ', Academy of management Journal , vol 28(2), pp. pp.446-463. Cadbury, A, 2006., 'Corporate social responsibility.', vol 1(1), no. Twenty-First Century Society, , pp. pp.5-21. 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