Corporate Social Responsibility

There is a question that lingers about corporate social responsibility in today’s society. Do corporations have a responsibility to society that extends beyond maximizing profit for shareholders? Corporate Social Responsibility (CSR) can be defined as “activities and initiatives that businesses undertake as a means to connect with or give back to the communities in which they do business. CSR can range from charitable programs and community service, to environmental-impact awareness” (Meranus). Corporations should go beyond maximizing profit and work to achieve a better society through Corporate Social Responsibility. In order for a company to be successful in the future they need to ensure that they are working to make money as well as making their community a better place. Businesses can achieve this through sustainability and, or philanthropic practices.

While it is critical for a corporation to focus on financial gains to ensure their success into the future, it is equally important for them to focus on their perception among stakeholders. According to an article in the Ivey Business Journal, there are two sides to this debate. There are economists who argue that corporations are only responsible to shareholders; if they are not maximizing profits then they are not acting responsibly. The other side of the argument is the ethics side. Corporations are institutions formed to improve society and make it a better place; therefore their activities must enhance social well-being to be responsible (Bansal). If these arguments are balanced and looked at as equally important issues, companies would be more successful in the long run. Many consumers are becoming more conscious on where they are spending their money and choose to only support those businesses that are giving back to society in some way.

“Over the past 15 years, the institutions that have grown most significantly in power and influence are those that can operate effectively within a de...