The Impossibility And Importance Of CSR Case Study

The Impossibility And Importance Of CSR - Case Study Example CSR also happens when a corporation’s business operations (as in the company’s policies and actions) are integrated with social values, specifically the stakeholders’ interests.   Usually, it focuses on three things: the social, the financial and the environmental facets of the corporation’s interactions. It actually has a triple bottom line: people, planet, and profit. CSR involves two main concepts: transparency and accountability. To be accountable is not only to become accountable in terms of the corporation. It also means to be accountable in terms of to its personnel. They have to have the right wages, incentives and working conditions. Of course, they should also be accountable in terms of protecting the culture, environment and the economy of the community. Thus, the corporations of today are expected to perform well not only in financial and management areas but also in areas like business ethics, corporate contributions, community development, diversity, human rights and other workplace issues. With CSR, every company’s environmental and social performances are proportional with their financial performance.  CSR also happens when a corporation’s business operations (as in the company’s policies and actions) are integrated with social values, specifically the stakeholders’ interests.   Usually, it focuses on three things: the social, the financial and the environmental facets of the corporation’s interactions.’s interactions. It actually has a triple bottomline: people, planet and profit. CSR involves two main concepts: transparency and accountability. To be accountable is not only to become accountable in terms of the corporation. It also means to be accountable in terms of to its personnel. They have to have the right wages, incentives and working conditions. Of course, they should also be accountable in terms of protecting the culture, environment and the economy of the comm unity. Thus, the corporations of today are expected to perform well not only in financial and management areas but also on areas like business ethics, corporate contributions, community development, diversity, human rights and other workplace issues. With CSR, every company’s environmental and social performances are proportional with their financial performance. As mentioned earlier, transparency is important. Now, corporations are expected to communicate their thrusts, projects and policies that affect their employees, as well as the community and the environment. Current global companies that show transparency are proven to be more financially successful as these factors contribute immensely for a sustainable financial growth. Currently, the investors are now making significant efforts to curb their carbon footprints to enhance their positive impact to the community. These companies are more sensitive to the fact that their company can actually have an impact to the society, and that they are/can be actually socially accountable, as well as environmentally accountable. As an incentive, the stakeholders are rewarding the companies who are indeed making efforts to contribute to the society’s well-being. However, the biggest criticism comes from Milton Friedman, saying that CSR is a paradox and a complete irony, not to mention impossible. Milton Friedman is an American economist who was a recipient of the Nobel Memorial Prize for Economics for â€Å"his achievements in the field of consumption analysis, monetary history, and theory†. He thinks that corporations cannot have responsibilities as CSR entails that businesses have â€Å"social responsibilities†. As corporations are only artificial entities, logically, they also have artificial responsibilities but of course, even a business cannot have a responsibility. Sure, businesses are owned by responsible people, and corporations have business executives who have values. These business executives may take part in a social movement, perhaps join a medical mission to help those in need. They may have other responsibilities that they took on their own, like their family, their church or even their country. With these responsibilities that they have taken in, they also put in their own money (which they earned from working in the corporation). Because in these respects he is not working as an agent for the company, he is acting on his