Part 1:
250 words
After completing your assigned reading this week, review the following article entitled "How Corporate Social Responsibility Is Moving from Optional To Mandatory" from Forbes magazine on corporate social responsibility: https://www.forbes.com/sites/robasghar/2015/05/07/how-corporate-social-responsibility-is-moving-from-optional-to-mandatory/
Think about what the author is discussing in this article and apply it to the Middle East region and Saudi Arabia, specifically. Do you agree that corporations should play a prominent role in pursuing economic and social justice in the world, or is that not their place? How does it help? How does it hurt? Share your thoughts on this question, using the readings this week and other sources you find as support for your argument.
Remember to use in-text citations and list APA style references to support your response.
Part 2:
Two replies
50 words per reply
Student1 Monmon:
Corporate social responsibility aims to ensure that companies conduct their business in a way that is ethical. This means taking account of their social, economic and environmental impact, and consideration of human rights. It can involve a range of activities such as: working in partnership with local communities, socially responsible investment (SRI), developing relationships with employees and customers, and environmental protection and sustainability.
Some businesses have as their main purpose the fulfillment of social or environmental goals, as opposed to a business that tries to achieve its financial goals while minimizing any negative impact on society or the environment. These businesses are called Social Enterprises.
There are actually two different types of corporate social responsibility to consider. The first one consists of corporations providing funding and resources for worthwhile social causes, such as donating money or employee time to charities. For many people, this is the definition used when thinking about corporate responsibility. However, another type of CSR involves putting together a real plan to produce products or provide services that are in the best interests of society. These include things like using safe materials in design and manufacture, corporate environmental initiatives, and other factors such as job creation and economic development.
Some of the positive outcomes that can arise when businesses adopt a policy of social responsibility include:
1. Company benefits:
•Improved financial performance;
•Lower operating costs;
•Enhanced brand image and reputation;
•Increased sales and customer loyalty;
•Greater productivity and quality;
•More ability to attract and retain employees;
•Reduced regulatory oversight;
•Access to capital;
•Workforce diversity;
•Product safety and decreased liability.
2. Benefits to the community and the general public:
•Charitable contributions;
•Employee volunteer programmers;
•Corporate involvement in community education, employment and homelessness programmers;
•Product safety and quality.
3. Environmental benefits:
•Greater material recyclability;
•Better product durability and functionality;
•Greater use of renewable resources;
•Integration of environmental management tools into business plans, including life-cycle assessment and costing, environmental management standards, and eco-labeling.
References:
Peng, M. (2014). Global Strategy (3rd ed.). Mason, OH: Cengage Learning.
Student 2 Han:
Corporate social responsibility (CSR) is a new trend of doing business in which businesses are able to make profits through taking care of society and aligning economic goals attainment with social and environmental goals (Iwata, 2014). Institutional guidelines such as Accountability 8000 Labor Standards, ISO 26000 Guidelines for Social Responsibility, have helped corporations from around the globe to adopt CSR practices. Steiner & Steiner, 2009 has defined CSR as the duty of the corporation to create profit in ways that avoid harm to, protect, and increase societal assets. The World Bank definition of CSR states that it is a "commitment of businesses to contribute to sustainable economic development by working with employees, their families, the local community and society at large to improve their lives in a way that are good for business and for development" (Blowfield & Murray, 2008).
CSR has received wide attention in developed countries but very little is known about its practices in developing countries including the Middle Eastern organization, despite the ethical disposition of the market from the Islamic perspective.And some research on CSR in the Middle East has indicated that there is a disconnection between CSR practices and the organization strategies. Saudi Arabia as the largest economy in the Middle East is striving to diversify its economy, and in this respect it is encouraging the private sectors to play a role in this direction (Khan, et.al., 2013 and Nor, 2012). Being more competitive and socially responsible are very important issues for most Saudi companies. At the same time the government aims to improve the quality of life of its people and develop its human resource. It also makes special provision for needy groups and allocates resources for a balanced and equitable development across the region for inclusive growth. These two facts indicate that prominent role that corporations should play in pursuing economic and social justice in the world. There are so many examples of leading Saudi companies that are well known for their adoption of CSR practices and formulation of an agenda in this regard that align with their strategic goals, such as Saudi Aramco, SABIC, ALJ, Savola and NCB. These companies are continually improving their CSR efforts, establishing separate CSR specific departments with its requiring empowerment and management. But still most Saudi companies need to establish their CSR mission and vision (Khan, et.al., 2013).
Willing companies can easily integrate CSR practices as Islamic values are highly ingrained in Saudi business society; charity for example is an accepted concept in Muslim society and Zakat is a mandatory practice which is providing to the needy and deprived people regardless of their religions and races. On the other hand, more Saudi companies are needed to invest in building social infrastructure, as very few of them have been successful in this regard, and this is because CSR is still perceived as a cost rather than investment. The government should institutionalize CSR in Saudi companies to help these companies achieving an exceptional place in the global market as well as the strategic philanthropy. In Islam religion and ethics go hand in hand, and contribution to help others is at the core of Saudi society and Islamic values, so if CSR is given the appropriate direction will surely help in creating a just and equitable society (Khan, et.al., 2013 and Nor, 2012).
References:
Blowfield, M. & Murray, A. (2008). Corporate responsibility, Oxford, UK: Oxford University Press.
Khan, S. A., Al-Maimani, K. A., & Al-Yafi, W. A. (2013). Exploring corporate social responsibility in Saudi Arabia: The challenges ahead. Journal of Leadership, Accountability & Ethics, 10(3), 65-78.
Iwata, E. (2014). Corporate social responsibility: More companies find that doing good can be profitable. Concordia Online. Retrieved from https://www.concordiaonline.net/corporate-social-responsibility-doing-good-can-be-profitable/
Maruffi, B. L., Malindretos, J., & Boronico, J. (2014). Measuring the effectiveness of corporate social responsibility practices and processes: A framework for assessing, monitoring and improving CSR programs, practices, processes and evaluation. Business Renaissance Quarterly, 9(1/2), 1-30.
Nor, S. M. (2012). Integrating moral in a dynamic model of corporate social responsibility in Islamic economics and finance. Asian and African Area Studies, 11(2), 137-150. Retrieved from https://www.asafas.kyoto-u.ac.jp/dl/publications/no_1102/AA112_04_Nor.pdf
Steiner, J. A. & Steiner, G. A. (2009). Business, government, and society. Boston: McGraw-Hill/Irwin. Tamani, M. (1990). Ethical issues in bankruptcy: a Jewish perspective. Journal of Business Ethics, 9(10),785-789.