Impact Of Corporate Social Responsibility On Democracy (Essay Sample)

Impact Of Corporate Social Responsibility On Democracy Your name Course name and number Professors name Submission date Impact Of Corporate Social Responsibility On Democracy Introduction Corporate Social Responsibility (CRS) is a broad and dynamic topic that has attracted a lot of debates and discussions for many years. It encompasses the environment, social welfare, ethical labor practices, and transparency and accountability (Lindgreen & Swaen 2010). Scholars and proponents have offered diverse perspectives concerning the implications of the CRS for society and democracy. The essay provides a critical analysis of the proposition presented by prominent figures such as Levitt (1958) and Friedman (1970) as well as a preposition from scholars at the end of the political spectrum like Rhodes and Fleming (2020), who argue that the CRS poses a significant threat to the society. The essay, therefore, aims to provide a comprehensive understanding of the relationship between the CRS and democracy. Definition of the corporate social responsibility Corporate social responsibility refers to the general initiatives in society that are geared towards enhancing sustainability. According to Nahar and Khurana (2023), It is the action businesses voluntarily take to address social issues, environmental and ethical in their operation, and the interaction with the stakeholders. The CRS has a wide range of activities that include the welfare of the employees, community development projects, ethical concerns, and sustainable initiatives, among others. CRS not only enhances productivity in the organization but also helps reduce negative impacts at work (Velte 2022). Addressing social and environmental issues affecting human beings reduces the challenges they encounter at work, hence maximizing their concentration. For instance, taking care of employees by providing a conducive working environment motivates them to stay in the organization for a long time. As a result, it helps the organization avoid experiencing labor shortages due to employees quitting jobs due to unfavorable working conditions. Conceptual framework Levitt (1958) and Friedman (1970) believe that the prime goal of CSR is to generate more profit for the shareholders. According to this perspective, CSR enables an organization to focus on developing more incoming resources by channeling more resources to the business, which results in increased productivity. Companies have a high chance of surviving if their profit maximization mechanism remains to be a dominant objective(Levvit 1958). This implies that all the CRS measures and initiatives an organization puts in place are aimed at enabling it to generate more profit. Social responsibility aims to conduct business in the desired way to make more profit while conforming to the basic rules of society that are put in place by the law and ethical customs(Friedman 1970). This means that businesses engage in social corporate responsibility because it is a way of generating more income. Therefore, CSR initiatives enforced by corporations, such as eliminating discrimination and controlling poverty, are mainly for the benefit of the business, which creates an atmosphere that would support the generation of more income. Levitt emphasizes that although the goal is to make a profit; corporations need to ensure that in the initiatives that they are taking, they serve the public effectively (Levvit 1958). Giving interest to the public will enable the corporation to have a stronger working relationship with them than when it focuses on how it will make money. Although masking profit is essential based on his perspective, it is also equally crucial for the corporation to show that it is a more excellent innovator than implementing initiatives that focus on improving the lifestyle of the public and improving their interest. On the other hand, scholars like Rhodes and Fleming (2020) argue that the primary focus is on social and environmental issues rather than generating income. According to this, scholars are taking voluntary action to address social problems in the environment, such as pollution, for the benefit of society. The CRS prioritizes the well-being of human beings in society. Therefore, most of its initiatives focus on creating a conducive environment for humans and protecting their health. Corporations, however, take the traditional roles assigned to the government, hence undermining its power and influence(Rhodes and Fleming 2020). People expect the government to address social and environmental issues because they assume the primary role of the government is to address issues affecting its people. The scholars also argue that the corporation can be used as a greenwashing tool, allowing the company to hide its harmful practices and focus on creating market dominance by branding its name as a prime participant in government sustainable development initiatives. This is dangerous as people can be blinded thinking that their life is becoming better when it is getting worse. Examples Example to emphasize Levitt's (1958) and Friedman's (1970) perspectives. For instance, when an organization establishes a clean water distribution project in a marginalized area with a water shortage, with this perspective, the organization's strategies will be more on how it will generate some income through distributing water to society. The organization can, for instance, come up with charges that people will be required to pay to get water. The project will benefit the organization because it will be generating income daily. Although the organization will have voluntarily decided to establish the water project using its assets, it will still target using it to create more revenue. Voluntarily coming up with a water project to help people is a CRS initiative; however, From Levitt and Friedman's perspective, this initiative is primarily to gain profit for the stakeholders. Example to emphasize Rhodes and Fleming's (2020) perspective. The two scholars argue that by taking traditional responsibilities that are supposed to be taken care of by the government, cooperation undermines democracy and the role of the government. For instance, when an organization develops a project that creates job opportunities for people and addresses environmental sustainability measures, the organization will gain dominance in the region and be seen as a solution to many people, especially by providing what the government t has failed to deliver. This can result in many people developing more trust in the organization than in their government t, undermining the government's power. Critical evaluation. Although CSR has many positive influences and benefits for people on the ground, orthotics argues that CSR has an unintended impact on democracy and the government. In fact, in most places, governments are raising many concerns about the extent and the limit to which the corporation should implement its initiation. Proponents argue that the increase in the influence of corporations in addressing social and environmental issues undermines the legitimacy of the power of democratic institutions. It is essential, however, to point out that CSR is not merely against democracy. When there is a straightforward integration of factors and collaboration, CSR can significantly contribute to the growth of democracy. When pursued transparently in line with societal values, it can dramatically support democracy (Zaman et al 2022). Corporations can help democratic governance identify the societal gap that needs immediate attention and form a collaborative institution working with the government, the community, and regulatory agencies to address the issue. CSR can also support accountability and ethicval behaviors, promoting people's trust in the institution and also promoting teamwork. Additionally, the activities follow the proper guidelines and standards since government agencies, regulatory bodies, and the community approve CSR. This, therefore, implies that the CSR activities are transparent and follow the proper protocol. For instance, a project set to start supplying water must be established following the given environmental measures that enhance sustainability. This, therefore, implies that all CSR activities are carried out very openly and transparently. It can, thus, be argued that CSR can significantly influence society because it gives insights into how to do things transparently in alignment with societal values. Corporations shape public influence on social and environmental issues through the labor movement, advocacy, and grassroots(Paruzel et al 2023). Therefore, CSR can be of great importance to society as it helps democratic institutions create awareness about social and environmental issues and educate the public on effectively handling them. Analysis The consequences can be understood through the areas of focus, which include the power imbalance, regulatory, greenwashing, and civil rights. The power imbalance The proposition of CSR serves as a significant threat to democracy and warrants careful consideration. Although the CRS are voluntary activities, they raise a substantial question about the role of corporations in society and their influence on the government structure. Proponents argue that the increase in cooperation in addressing social and environmental issues weakens the power of the government in society (Rhodes and Fleming 2020). When corporations come out to address and deal with social and environmental issues, it implies that a big problem is affecting people, and the government has not taken the necessary action to address them. The corporations move to address the issues, pointing out the government's weaknesses and undermining its power and influence on the people (Tai and Chuang 2014). The proponent argues that the corporate interest has conflicted with the public interest on many occasions, leading to the developme...