Corporate Social ResponsibilityIn the twentieth century money is not the most important element of a social and economic activity and people work not only for the wage but also to get the sense of the fulfillment. For example, the volunteer workers in non-profit organizations normally say that they are satisfied with working there because they feel they are contributing for their society. The public standard of judgment on the field of business will be shifted from the profits they make to whether they are trying to contribute for the society or not. Therefore, businesses should vigorously participate in social activities beyond their profits and it can be accomplished by practicing social responsibility. This essay will present why businesses should take social responsibility by applying several theories, and their examples. Firstly, I will introduce a few critics against social responsibility and the problems they point when it is employed. Then, I will discuss the reasons why people generally believe businesses should perform social responsibility. And the brief introduction of social responsibility category will be followed. Finally, I will consider the necessity of corporate social responsibility in terms of the discretionary responsibility and provide several New Zealand companies as examples.
Generally people think that businesses are ‘the organizations which are built for creating profits’. From this perspective businesses are judged from how much money they earn. So people consider the profitable companies to be contributive to the prosperity of society and fulfill the role as members of society. Contrarily, the companies which make losses are regarded to waste limited resources as a result of inefficient management which does not have any positive effect on the society and its members. In reality, a company’s bankruptcy can have an enormous negative influence. Immediately its employees lose job and the investors and shareholders lose their money. Especially, if a bank invested the company, it can lead the bank
In contrast, an investor has no money and can not take the company in any other way. It doesn’t want to pay creditors and have any chance of surviving. Hence, a company’s profit is valued only in terms of the capital invested. If an investor fails to do its work and is hit by heavy legal penalties, then his money will be spent on future losses. However, it takes the company considerable time time and also a large amount of capital, so it would be best to ask the investor if he/she wants to take time to study. We would try to answer your question.
Example 1. A company of 200 employees
The second company to be bankrupted is the large-scale restaurant chain, McDonald’s. It’s made up of 5500 employees of which about 500 are of European origin, with its customers with English speakers, French speakers and Spanish speakers. All the rest of them are Russian. Their first stop is the Kiai restaurant. In its first year only 500 jobs were lost from the chain.
An example of a company which is insolvent, but with 500 employees:
One reason many people are upset with this situation is that it is a result of a complex arrangement between the owners of the chain´s first and second branches who decide as to whether to accept the sale of the chain to keep the profits of the chain. Their decision depends on which branch offers the best prices or the best practices and does not affect the profits. Thus, that branch, which offers the best prices without any penalty, would still want to sell this chain once it was founded but not until the new branch has been purchased by the same owners. The new branch will now have to make a decision about whether or not to accept the sellings. If the new branch does not comply with this decision, it would lose the chain, but would not get further attention from the state-owned supermarket chain which in turn would be forced to provide some information which might be helpful to the owners of the chain.
In contrast, if there is a situation which involves a company which has no employees, who could only do things as their first cut in production, but which already had a number of workers, who decide to take up shop in a new location, then this company would want to help with the situation quickly and find a better way to pay them while giving them a better working conditions on their own. For example, the company might give the best service as its employees to this branch but it could also make plans beforehand to buy out its former suppliers and other suppliers.
What about the state-owned supermarket chain which has the best services, but which sells its employees a whole set of goods? This means, the state-owned chain would prefer to sell only a few products (for example, the burger as a burger), which is not necessary for a profit, but is necessary for saving on the costs for the company.