Question

Why do some corporations and their management oppose corporate social responsibility?

Social responsibility is interpreted in many ways. State your understanding of corporate social responsibility.

Answer 1

Answer- Corporate social responsibility is the obligation of the companies to do things that that help make the businesses accountable to their stakeholders and general public at large. Since companies take up resources from the environment and the environment belongs to the public. Hence, it is the responsibility of the companies to return the favour to the public and such favours or things done by company are known corporate social responsibility.

Companies often find corporate social activities unattractive and don’t really want to go for it. It is generally because companies pay huge amount of taxes on the profits that they have earned and often comply with the rules of the government reagrding payment of wages to the workers. Also, the companies pay salaries to workers as per their skills. Apart from this they pay bonus and EPS to their shareholders and dividend as well and hence companies think that since they are paying taxes to the government and think that they are already adhering to their responsibilities and hence there is no need to do another social responsibility.

In my understanding corporate social responsibility means that since companies are operating by using the resources of the public and hence it is the responsibility of the company to do something for the public. Corporate social responsibility helps to improve the image of the company and this helps in improving the profitability level of the company as people tend to think that the company is doing business ethically. Companies who follow car activities are able to retain hardworking employees and thus improving the company’s profit.

Apart from the above mentioned points the company also attracts good and genuine investors as people think that the company is not involved in any kind of unethical activities.