Corporate social responsibility: concepts and impacts

Corporate Responsibility

During the past couple of decades companies that had been previously concerned only with their bottom line and profitability have changed course and taken new directions that include corporate social responsibilities such as health, safety, environment, and even community relations. As these new responsibilities have taken shape many of the for -- profit organizations have established footholds in what used to be the non-profit arena's domain of expertise. This is true not only in the developed countries around the globe, but in under-developed countries as well. One recent report touts that change in thinking by stating "businesses have obligations to society that go beyond profit-making to solve societal and ecological problems" (Idemudia, 2011, p. 1). Today, more companies are likely to agree with that statement than in the past, especially those companies that are often in the public eye, such as large oil companies.

A good example of what these companies are implementing is an oil company working in the Ludin area of Africa. The company hired a CR manager to assist in their efforts to continue drilling operations there. The CR manager elaborated on health, safety and environment issues and also "developed a Human Rights Primer, launched a community development and humanitarian program, and initiated a process of stakeholder consultations" (Batruch, 2011, p. 156).

Of course, most individuals who do any shopping, listening to ads, or reading newspapers likely realize that there are a lot of companies that are touting their 'green' philosophy. Whether this is an effort to actually deal with the environment in a more effective manner, or whether it is just the company's way of taking advantage of the green movement can be evidenced by their environmental record (or lack thereof), but there is no mistaking the fact that it is out there. One recent study determined that the corporate image is based upon the "consumers subjective overall assessment of the corporation" (Kreng, May-Yao, 2011, p. 529). Experts from the same study believe that the role corporations play in the wider societal picture helps build the corporate image, both positively and negatively based on the strength of the role. Kreng et al. writes "how a business deals with employees, investors, communities, and others will influence consumer perceptions" (p. 529-530).

The list of actions the corporation can take to promote itself as a socially conscious company include all of the above as well as actions such as forming (and funding) community groups, creating partnerships to build public parks and recreational centers, and working within the educational system to promote constructive agendas and programs. Companies can also work towards solving some of society's biggest problems as well; problems such as hunger, scarce water and other resources, keeping the environment clean, and helping those that are disadvantaged by offering resources that are not accessible through government or other entities.