Technology and Business: Corporate Social Responsibility Essay Example

that also improves the quality of life for employees, their families, the local community, and society at large (Making Good Business Sense, L. Holmes & R. Watts).

Business for Social Responsibility defines Corporate Social Responsibility (CARS) as conducting business in line with ethical, legal, commercial, and societal expectations. On the other hand, the European Commission provides two definitions: one involves companies voluntarily contributing to society and the environment, while the other emphasizes integrating social and environmental concerns into business operations and interactions with stakeholders on a voluntary basis.

The perception of CARS differs globally, varying across societies. In Ghana, it is recognized as a tool for sustainable livelihoods that respects cultural diversity and identifies business potential in improving employee skills, community development, and government involvement. Meanwhile, in the Philippines, CARS is considered a means for businesses to make societal contributions.

The different principles all center around the same core concept: that a company's responsibility goes beyond just making profits for shareholders. A company has a duty to offer advantages to all stakeholders. This encompasses treating employees fairly, conserving the environment, practicing effective corporate governance, endorsing philanthropy, advocating for human rights, valuing cultural diversity, and facilitating equitable trade. All these endeavors aim to have a positive influence on the communities, cultures, societies, and environments in which companies function.

These efforts have a positive impact on different stakeholders within a company, such as customers, employees, executives, non-executive board members, investors, lenders, vendors, suppliers, governments, NGOs (non-governmental organizations), local communities, environmentalists and conservationists , indigenous people or tribes , foundations or trusts , religious groups and cultural organizations. Companies that prioritize social responsibility can benefit society by supporting

initiatives like funding the arts community or providing academic scholarships and community-building projects.

The text emphasizes that companies can make a contribution beyond charitable acts by addressing underlying issues in a long-term perspective. It highlights the connection between Corporate Social Responsibility (CARS) and Sustainable Development, which advocates for enterprises to consider not only financial factors but also the social and environmental impact of their actions. The text introduces the concept of the Triple Bottom Line (TAB or ABLE), also known as People, Planet, Profit or The Three Pillars, as a measure of success for organizations and society.

This has become a dominant approach towards implementing and measuring CARS. On reviewing each of these definitions we see that in general CARS can be viewed as:
- A concept or a mechanism by which businesses consider it their responsibility to including the welfare of its employees and their families and also the community at large.
- It is a mechanism by which a company responsibly embraces its duties awards the environment, consumers, employees, communities and its stakeholders rather than solely concentrating on making profits and its own welfare regardless of public interest.

CARS, or Corporate Social Responsibility, comprises ethical behavior towards staff, proper business practices, and transparent corporate dealings. This means including public interest in decision making. In essence, CARS reflects how a company's actions affect society. Managers have the responsibility to ensure their organization's actions are socially responsible.

The concept of Corporate Social Responsibility (CARS), which is also referred to as Corporate Citizenship, Global Citizenship, and Corporate Accountability, was first introduced by Bone in his publication on Social Responsibility in 1953. The development of CARS is closely

associated with the evolution of trade and business, influenced by industrialization and the effects that businesses have on society and the environment. In the academic realm, CARS gained prominence during the 1970s and 1980s.

In 1998, Shell became the first company to implement CARS (Corporate Social Responsibility) into their practices. By 1990, CARS had become a standard adopted by companies such as Price Waterholes Cooper and KEMP. Over time, CARS has evolved beyond being a code of conduct. Nowadays, with knowledgeable employees and stakeholders, practicing CARS can pose a threat to a company's development.
What motivates a company to adopt CARS? To quote Peter Ducker, "The 21st century will be the century of the Social Sector Organization. The more economy, money, and information become global, the more the community will matter."

A survey conducted by The Economic Intelligence Unit revealed that 85% of senior executives and institutional investors acknowledge the significance of CARS in decision making, even in the absence of a clearly defined business case. The community is urging greater involvement and contributions to address the perceived shrinking of Nags. Customers are increasingly demanding safe products and ethical businesses, and they are willing to change their purchasing habits accordingly. Stakeholders and shareholders are emphasizing improved risk and reputation management to safeguard genuine profits. Employees are seeking greater empowerment, job security, a better work-life balance, and a sense of purpose in their work.

The current challenges organizations face in various areas have compelled them to seek an integrated approach to address these concerns. Until now, companies have handled CARS (Corporate Action and Responsibility Strategy) as external community relations, but this approach falls short. It overlooks

the fact that CARS also encompasses a company's products and services, including unethical ones.

In order to effectively implement CARS, it is important for businesses to exercise caution and care. Trust and foresight play a critical role in this process. Establishing and nurturing trust with customers, communities, and regulators can be difficult but is necessary for achieving long-term success. It is also crucial to anticipate forthcoming challenges like technological advancements, changing customer demands, as well as social, environmental, and governance concerns.