Economic Responsibilities of CSR (Annotation 1)

In the corporate social responsibility, there are four principal parts: economic, legal, ethical, and philanthropic responsibilities. In 2006, Carroll and Buchholtz’s study of business and society showed that business should be “an economic institution whose orientation is to produce goods and services that society wants and to sell them at fair prices”. I think that there are three kinds of people in the society─investors, employees, and the general public─playing the important roles in the economic responsibilities of corporate social responsibility.

First, I want to talk about the investors, whom I originally do not think of before I read the book, Business &Society. They are closely related to the business. Their major purpose is to gain profit from the successful companies. Therefore, the entrepreneurs’ responsibility to investors is maintaining the regular function of the companies, and making them keep getting the adequate returns on their investments. When investors are not benefited from the business, which they invested heavily in, the society will be in a state of chaos. The effect of economy is like dominoes, which associate one with others. For instance, the failure on business causes the collapse of the economy, which makes the public afraid.

Second, employees are also the important part in the development of the business. The company is like a machine, and the employees are like screws, which are requisite in the operation of the machine. The entrepreneurs need employees to work for them, and employees’ living expenses depend on works. When employees are paid good salary, their happiness and satisfaction of life are increased. Furthermore, they will devote their hearts to works. The entrepreneurs’ responsibility to employees is giving the steady salary which corresponds with their works. If the employees’ lives are stable, they could pursue not only the material comfort but also the spiritual growth, which can make the society progress.

Final part is essential population of the society: the general public, who is the basically consumptive unit. The entrepreneurs’ responsibility to the general public is making the products safe and selling them at the fair prices. According to the recent news, there are many tainted foods reported on TV, which makes the general public nervous and scared. The perfect satisfaction of products has to be guaranteed to customers by the businessmen. Besides, the commercials cannot be exaggerated. Although the entrepreneurs want to make a profit, they still cannot deceive the general public and sacrifice the people’s heath.

In conclusion, the operation of the business influences the society. The healthy environment of the society is a decisive element of economic development. Therefore, the entrepreneurs have the responsibility to maintain and protect the resource, which is from the society, including people.

Figure 1: The pyramid of corporate social responsibility

Figure 2: The business case for CSR

Figure 3: Top 20 activities/ characteristics of socially
responsible companies

Source of citation and figures: 

Archie B. Carroll & Ann K. Buchholtz (2006). Business, society, and stakeholders: Corporate citizenship: social responsibility, responsiveness, and performance. In Dave Shaut (Ed.), Business & Society: Ethics and Stakeholder Management, 6th edition (pp. 29-60). Mason, Ohio: South-Western.