(Baker) Corporate Social responsibility is extremely important to a company's business. According to a survey by the Economist Intelligence Unit, Corporate responsibility is affecting the relationship between companies and their various stakeholders, such as investors, customers, vendors, suppliers, employees, communities and governments. (Doebele, 2005)
The Corporate responsibility trend is being driven by a large number of factors. Companies which do not engage in social responsibility might be viewed as unethical as peoples trust in large organizations is already waning. The rise in the corporate governance movement, globalization of businesses and the competition presented by rivals all contribute to firms increasing interest in corporate responsibility.
The benefits of corporate responsibility may prove never ending for an organization. They might not necessarily be tangible because of the costs of Corporate responsibility but the intangible benefits include brand enhancement, stronger employee morale and greater investor confidence.
Corporate Social responsibility is the basic set of ethical and managerial principles to guide a business enterprise. This is so because it deals with everything from corporate image, public relations, environmental liability, lawsuits, relations with governments and worker morale. These corporate responsibility principles are guided by another set of principles. The first principle is that the company produces raise the quality of life. Three basic types of processes are identified to implement Corporate responsibility principles. They include environmental management, issues management and stakeholders management. There will be times when two or more of these management areas will be integrated to form one area of concern. For in 1994 BHP Billions of shareholders were concerned about the company causing environmental damage in Papua New Guinea. (Gail Thomas, 2006). There have been multiple arguments in favor of supporting corporate social responsibilities for businesses.