Should Corporations be Engaged in Corporate Social Responsibility (CSR) Activities? (Essay Sample)

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Should corporations be engaged in Corporate Social Responsibility (CSR) activities?
Corporations ought to stay away from corporate social responsibility activities that a number of companies engage in as form of giving back to society. CSR, viewed by many as being beneficial to a company’s image and brand, has been associated with a number of issues (Mohin, 7). It is likely that CRS will cause governments to impose much more control on business activities undertaken by companies. CSR has been associated with rise in costs of products as well as services in which case buyers will tend to stay away from overpriced products. They will opt to acquire such services from companies that never engage in voluntary corporate social responsibility (Mohin, 8). The outcome of CSR is increased regulatory measures by government instead of voluntary acquiescence. Other than regulatory measures, onerous as well as intrusive measures not seen previously will emerge, particularly in American markets (Mohin, 10).
Corporate social responsibility is mired by problems since it has been found to undermine company management’s responsibilities. CSR restructures a company’s business purpose. Consequently, other than traditional objectives of business which involve profit maximization, a corporation is held captive by interests of shareholders as well as its duty to protection of environment (Meltzer, 32). Since CSR spells out that management is responsible for both the environment and interests of shareholders, unfortunately, it is common to find managers not taking an interest in either of the two. CSR presents problems of competition, incompatibility and contradictory objectives. Traditionally, measures are put in place to ensure managers serve an organization’s interests. With adoption of CSR, such measures become stringent and unfavorable creating a hostile environment (Meltzer, 33).
CSR has been found to critically diminish critical focus directed on proper governance. Although CSR creates emphasis on social and environmental issues, facts are that within developing nations, one fundamental concern is primarily governance. As a result, local and national authorities are burdened with ensuring accountability through open and fair decision-making processes (Meltzer, 34). Furthermore, CSR allows for inappropriate supposition of authoritarian power by corporations and businesses. Society should not leave establishment of centers of learning, protection of environment and structuring of medical care to businesses. Corporations do not have sufficient capacity to determine most urgent needs of society. It is not likely that businesses would address society’s issue in an all-encompassing manner (Meltzer, 35). Businesses are likely to concentrate within one location whereas issues being addressed are regional.
Funds otherwise invested in CSR activities ought to be rolled back into an organization or business. The main idea behind CSR is ensuring sustainability; companies are focused on outpacing one another through "focusing" on issues society is facing (Melter, 36). Funds employed in CSR should go into shareholders dividends, wage increment for employees whose hard work is responsible for a companyâ€&t...