the four theories of corporate social responsibility: 1) Maximize profits; 2) Mo
ID: 1132817 • Letter: T
Question
the four theories of corporate social responsibility: 1) Maximize profits; 2) Moral minimum; 3) Stakeholder interest; and 4) Corporate citizenship. (Cheeseman, pp. 717-720). Find a current example, (from a reliable source, cited in your answer), of an instance where a business made a decision or took an action compelled by its definition of corporate social responsibility. In your opinion, which theory of social responsibility compelled the business to make the decision or take the action? What do you think the ramifications of the action or decision could be for the business?
Explanation / Answer
Ans. You must be aware of the Recent Floods that took place in Kerala , India. A lot of damage has been caused by the flood to the state. Hundreds of People have lost their lives and thousands are living in rehabilitation camps. Situation is much worse than it sounds. Whole country have showed their support to the people of Kerela. In this vulnerable situation , many Private Companies have also contributed their share in the relief operations portraying a perfect example of CORPORATE SOCIAL RESPONSIBILITY. We'll be taking the example of India's leading Digital Payment Provider , Paytm.
The article is from HINDUDTAN TIMES with the heading , " Paytm collects Rs. 30 Crore from its users for donating to Food hit Kerala " . Paytm collected this amount in just 1 Week. Amount was donated by its 1.2 million users.
In my opinion , Corporate Citizenship theory of Corporate Social Responsibility compelled the business to take the action. Because the Corporate Citizenship Theory states that goal of the company should be to maintain higher standards of living and quality of living among the people in which the business of operating.
The ramifications of the action could be :
1) Business is able to earn high respect and regard in the society for following the Corporate Social Responsibility.
2) As Paytm has contributed for the development of People of Kerala. It can take advantage afterwards by expanding its operations in the state.
3) The company is able to earn a high reputation in the eyes of Indian Government. Hence it could get benefitted afterwards for their good work.
4) Popularity of the company have increased manifold which will in turn help in the Growth of the business.
5) This action brought a sense of Social Satisfaction in the Company's environment and help in boosting the morale of the company .
Several other private companies like Zomato , a fast food delivery app also helped in providing relief to the people of Kerala .
I hope this answer was helpful . Do ask in case of any doubts.
Best of Luck ! Keep Chegging !
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