Corporate Social Responsibility (Essay Sample)

Corporate Social Responsibility
Responsible Free Enterprise
Introduction
Since its emergence in the 1960’s, the concept of corporate social responsibility (CSR) has become dominant in business. CSR is a concept whereby companies voluntarily integrate social and environmental concerns in their business operations and in their interactions with stakeholders. This is premised on the fact that the corporation does not exist in isolation; it is a part of society. As such, its activities have an impact on the external environment and stakeholders.
Byron (2006) states that CSR is a four-level model that encompasses the economic, legal, ethical, and discretionary or philanthropic categories of a firm’s behavior. Economic responsibility- the foundational level of social responsibility – lays emphasis on making a reasonable return to shareholders. CSR theorists agree that no business can be socially responsible unless it is economically viable. As Collins (2002) states, businesses should not define profits as their purpose, but should nevertheless recognize that reasonable profitability is necessary to continue in business and realize organizational objectives. He equates profits to food; while we do not define food or eating as the purpose of our lives, we recognize that it is essential to maintain our health and strength so we can realize our real purpose.
The second level of CSR is legal responsibility, which means abiding by all laws and recognizing that the law exists to maintain competition and protect all players. However, to remain within the law is the sum of social responsibility, corporations are called to rise above their legal obligations and behave in an ethical manner, even when profits are compromised. The third level of CSR, ethical responsibility is about doing the right thing. It “stretches all the way from respect for individual human dignity (in employees, customers, suppliers, and competitors) on out to respect for the physical environment that is necessary to sustain life on this planet” (Byron, 2006; p. 137). Discretionary or philanthropic responsibility is concerned with engaging in initiatives and programs that promote the common good. Neither the law nor reason-based ethics makes demands at this higher level, but corporations are called upon to provide philanthropic support to education, healthcare, and social justice institutions and programs.
Ben & Jerry’s: An Example of Good Corporate Citizen
While many businesses are now undertaking CSR activities and reporting, one company that stands out due to its extensive CSR efforts is Ben & Jerry’s. Since it first opened its first ice cream store in Vermont, U.S., Ben & Jerry’s is considered a pioneer of modern corporate social. From the sustainable way it makes, packages, and distributes its ice cream, to giving to charitable courses, to taking a public stand on progressive social and environmental issues, Ben & Jerry’s is not only deserving of a place in the Fortunate 500, but also of our moral admiration as one of today’s best social impact companies. The company’s mission encompasses three parts of its mission: