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Corporate Social Responsibility External and Internal Factors - Essay Example

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A writer of an essay "Corporate Social Responsibility External and Internal Factors" specializes that corporate stakeholder theory (Cornell and Shapiro, 1987 in Zu, L, 2008) suggests that a company must satisfy all the stakeholders, bondholders including those with implicit claims…
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Corporate Social Responsibility External and Internal Factors
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Corporate Social Responsibility External and Internal Factors

Galbreath, J (2006) mentions that firms have three responsibilities to society: economic, social and environmental. The internal factors that motivate the social responsibility within the companies include managers, employees, shareholders, customers, and suppliers. The internal factors are more focused on maximizing profits on shareholder returns, giving something back to the society in a form of philanthropy which arises from firm surplus profit and firms proactively involve themselves in dialogue with their stakeholders and integrate their findings into decision making. The external factors influencing the social responsibility include culture, government regulations, Non-government organizations and global standards. The external factors require the company to operate within the context of national and even regional cultures of the nation, oblige to the legal framework necessary to an economy as a response to inefficient and inequitable behavior and global standards. The companies’ social responsibility towards society; environmentally includes reduction of waste output, reduction of energy consumption, sustainable measures to protecting the environment. Whereas socially, a company needs to focus on promoting diversity, choosing suppliers on non-economic criteria, reintegration support and alliance with NGOs (Poussing, N. 2009) in order to provide services to the community which are not available from the state, like education, health, welfare, etc.  ... Read More
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