Often, community events are sponsored by corporations who claim that the reason

Question

Often, community events are sponsored by corporations who claim that the reason they are involved is "to give back" to the community. However, on page 37 of Conscious Capitalism: Liberating the Heroic Spirit of Business, Mackey and Sisodia state, "A good business doesn't need to do anything special to be socially responsible." In fact, a publically owned company is owned by shareholders, not the CEO. Any donated money is not the CEO's personal fortune to do with as he pleases. If he tried to spend corporate money on himself, most would call that stealing. So, what is the rationale for corporate spending on these community events?

Explanation / Answer

Corporate Social Responsibility often referred to as ‘CSR’ are the activities taken by a corporation to rectify the harm it has caused to the environment and social well being. The responsibility of a corporation goes beyond making profits and increasing the value of shares to its owners and shareholders. The ultimate stakeholder is the community. CSR activities can take several forms. It can take the form of building schools and/or hospitals, planting trees, providing nutrition to vulnerable groups, donating medicines and food to areas devastated by natural calamities, etc. Corporations also indulge in activities for their staff by providing extended maternity leave, flexible working hours to new moms, paternity leave and child care. In recent times, corporate social responsibilities have become popular and corporations are eager to participate in community activities.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.