In the past several decades, corporations have been forming in almost every area of the world. The corporations drastically affect the area around them, sometimes for better and sometimes for worse. From this, the idea of corporate social responsibility arises. Corporate social responsibility can be defined as the commitment of a corporation to better the area in which it is located. As two every story, this one has two sides. Some people are for it and some against. Two reasons that have come up supporting corporate social responsibility are that it is good press, and that it gives its’ employees a sense of pride. Two arguments against corporate social responsibility are that a corporation’s job is to make a profit, and that people should take care of themselves. Now I will elaborate on these.
The idea that corporate social responsibility is good press is entirely true. If a corporation (especially a large, well-known one) does something that people other than employees benefit from, it makes them look good. By looking good, the corporation has a chance to get free advertising. If the good deed is covered by the media, the corporation does not have to pay a dime. So, you could almost consider the cost of the good deed as an advertising expense. An example of this is the large array of Christmas lights the Herr’s chip factory puts up every year. Although this isn’t a direct way of giving back, it gives the people in the area something magnificent to look at during the holiday season. At the same time, its gets peoples’ attention which is what advertising is designed to do. The good press created by a strong sense of corporate social responsibility also has the potential to get new investors. Many wealthy people love investing in companies that are environmentally friendly or that give back to the people in some way.I strongly suggest you to visit corporate social responsibility to learn more about this.
The second supporting piece of information for corporate social responsibility is that it gives the corporation’s employees a sense of pride. It would make me feel good knowing that the company I worked for helped out in the area I lived. This might motivate employees to work harder, which would make them more productive. In a sense, all of the hard work the employees put in generates the money used to benefit the surrounding area. I know people would really like the chance to say “Hey, I work for that company” when he or she over hears people talking about something good the corporation did.
Like I stated, there are always two sides to every story which means there are also reasons that people are against corporate social responsibility. One is that the corporation’s responsibility is to the shareholders. This means that corporation’s focus should be on making as much money as possible. So for a company to spend money by giving back to the community just seems wrong in that respect. Now, the fact that the publicity the company gets from giving back generates the sale to offset the cost is another topic in itself. I feel that it potentially could, but there’s no way of knowing for sure. Many stockholders only invest to make money, so they would probably feel that the company should earn money and that is it.