Developing an informed understanding of issues surrounding the concept of corporate responsibility.

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‘Developing an informed understanding of issues surrounding the concept of corporate responsibility’

When I first saw that corporate resonsibilty was a topic which I was studying, I expected it to be boring, however, I was pleasantly surprised. I found that the concept of corporate responsilbilty was not only interesting, but it is also increasingly relevant in today's society. Although I feel that doing this work on the topic of regulations would be easier as I have attended more lectures on that topic, I think that the topic of corporate responsibilty would be more interesting to write about. I hope I do not live to regret this decision!

Corporate responsibility (CR) has various definitions. However, broadly speaking it covers the ways in which organisations manage their core business to add social, environmental and economic value in order to produce a positive, sustainable impact for both society and for the business itself. Health and safety in the workplace is an important Corporate responsibility issue. Terms such as ‘corporate social responsibility’, ‘socially responsible business', and ‘corporate citizenship’ all refer to this concept. CR is essentially about companies moving beyond a base of legal compliance to integrating socially responsible behaviour into their core values, recognising the sound business benefits in doing so. Since businesses and the challenges they face differ widely, government interventions need to be carefully considered, well-designed, and targeted to achieve their objective.

 

Companies, no matter what shape or size, have a considerable social, environmental and economic impact on the communities in which they operate. In today’s highly competitive economy the importance of ensuring ‘positive impact’ can be crucial to both corporate reputation and business success. Many companies are placing greater emphasis on the role that they can play as ‘responsible corporate citizens’ and accept and understand the importance of adopting a social, ethical and environmentally responsible approach to business activity. By recognising their wider responsibilities, many now accept that that they are responsible and accountable to a wide range of stakeholders, including business partners, employees, customers, suppliers, community groups and opinion formers, not just shareholders. CR embraces the totality of this approach. The discipline has grown rapidly over recent years and has developed into a wide ranging practice which permeates all levels of business activity, affecting corporate governance, employee relations, supply chain and customer relationships, environmental management, community involvement as well as other key business operations.

Whilst traditions of corporate philanthropy date back to Victorian times, companies are now more than ever beginning to engage actively with community organisations and build meaningful relationships to meet both community needs and business objectives, and to address key social concerns. Businesses have woken up to the fact that if they want to maximise their profits in the medium to long-term, with healthy, well-skilled and well motivated stakeholders in and around their businesses, they need to take a more proactive approach. CR and sustainable development is not a new name for redistribution of wealth, it is a forward thinking strategy that will ensure that the greatest number of people can benefit from the free-enterprise system.
CR is big business. It is not just another passing trend, but is the direction which all successful 21st century businesses will have to take in order to survive in an age of globalisation. Only five years ago, the words "corporate responsibility" turned up around 50 company reports on an internet search engine. Today, thousands of companies display their newly developed ethical codes and socially responsible projects at the click of a mouse.

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CR is a concept now familiar with the vast majority of companies. Whether it is in response to external pressures, from government, civil society or the public, or driven by an internal belief in the economic benefits of responsible business practices, many companies are now starting to take concrete steps to deal with social and environmental issues. In addition, the rise of socially responsible investment and the growing interest amongst mainstream investors and pension funds in long-term sustainability has sent explicit signals to companies that their management and performance on CR is viewed by the financial community as a ...

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