Corporate Social Responsibility

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Question

How can international businesses, large and small-medium, advance the common good and equality of the human experience (this includes people’s material, social and natural environments)? Examine the current debate on the role and function of international enterprise “beyond the profit motive”.

Solution

1. Introduction

Rise in the economic inequality along with the misdistribution of resources as well as the opportunities are turning out to be the fundamental issue of our time. The roots of this crisis can be traced back to the unbridled economic growth along with the twin forcesof technology along with capital(Bandarage, 2013) . The capitalism and technology are achieving a rapid growth in this highly globalised world becauseof uncontrolled competition in the markets. This report thus analyses whether the international businesses are really working towards a common goal of delivering goodness and equality of human experience throughsustainability lessons and promoting global well-being. While we are sharing the spirit of mostof our co-workers for corporate social responsibility (CSR) along with business sustainability, it certainly makes us feel unnerved also at the same time when certain multinational corporations are seen to be responsible for someof the grievousacts that have done against humanity as well as against the environment while flying the flag of sustainability(Palazzo & Richter, 2005).

1.  Beyond the Profit Motive and ROR Model

The “beyond the profit motive” is the model adopted by the corporations post-industrialisation and it does not simply give a solution to the issues inachieving asustainable form of economy across the globe by the business enterprises. It explains thevarious structures as well as processes that can help in evolving substantive solutions in organic manner for enterprises. The Return-on-Resources ( ROR) model that is being adopted by international organisations  provides an outline of  the type of social accounting  framework  that is very necessary for finding the quantitative estimates  regarding the corporate social performance, as the main basis for  making decisions(Halal, 1978). The concept of  extended corporate community helps in analysing and explaining the various systems of grievance adopted by international business  that help in making intuitive judgements, personal cooperation as well as  making political compromises , that are very imperative for  taking action upon  the available information for making  joint as well as viable decisions(Bell, 1974). This paradigm of ROR has significant impact on individual level, firm level and at the societal level also. The ROR model is an open-system and emphasises on the boundarytransactions that take place between the international enterprises and their constituencies. This types of approach develops a rigorous“suprasystem” that explains a complex array of the institutional relationships consisting of the modern societies as well. This shows that the corporation acts as the focal point  of the institutional infrastructure as it connects and combines the  labour unions, consumers,  government agencies, investors,  corporate clients as well as  various other institutions  thus forming a complex  network consisting of  interorganizational  relationships (Negandhi, 1975). Such type of  corporate social accounting systems  help in framing  a foundation for an ambitious framework  consisting of social indicators that are being developed  for evaluating the social performance  towards the society at large (Fox, 1974).

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