Question

How is the concept of social responsibility correlated to the events of global financial meltdown and was one of the reasons behind the meltdown deterioration of corporate responsibility?

Answer 1

The social responsibility and global financial meltdown was positively related. In other words, due to globla financial meltdown, the companies had to severly cut down on its CSR initiatives as the companies were running out of money. At the time of financial meltdown, companies main focus was shifted onto the other aspects or other stakeholders such as investors so that they can survive. Companies has a social responsibility towards the various stakeholders such as government, employees and society as a whole. Due to financial meltdown, any external cost in term of controling pollution was ignored, the compensation policies for employees were changed to reduce the cost of the company. Hence due to financial meltdown, the companies took steps that ultimatley leads to the deterioration of corporate responsibility. The companies were not taking CSR as an important touchpoint during financial meltdown but it impacts the reputation of a company to a large extent.