Corporate Social Responsibility

Introduction

In years past companies were only held accountable by shareholders and government agencies. Unethical behavior was normally exposed by audits and internal whistleblowers, fortunately that is no longer the case. With the proliferation of personal electronic devices and the increased connectivity of the world, companies realize that their secrets are no longer secret. Unethical behavior will be outed to and be judged by the world. Corporate social responsibility is the obligation that a business assumes toward society. It is linking business success and societal consequences. Some examples are pollution control, sustainability, living wages and community relations. Before the later part of the 20th century corporate social responsibility and profits were seen as opposites. A company’s only concern was the increase of profits. Markets were confined and competition was minimum. Consequences for unethical behavior was few and far in between. Society as a whole had no concept of what they were doing and whistleblowers had minimum protection. Now things have changed. The global community is connected, whistleblowers are protected, businesses are more open and consequences are real. Successful business have shifted their perspective to one of acceptance. They have realized that they can be socially responsible and profitable. Indeed, social responsibility can be a chief driver of wealth creation (Bateman & Snell, 2015).

Discussion

History

While many believe that corporate social responsibility started in the later 20th century this is not the case. There are traces as far back a 1700 BC. The Babylonian law code establish things such as sanctions against builders who hurt innocent bystanders (Husted, 2015). What we think of as modern corporate social responsibility began in the early 19th century. The industrial revolution created an environment uniquely suit for corruption, abuses, and pollution. However, it is out of this...