1. INTRODUCTION
Corporate Social Responsibility (CSR) which can also be sustainable responsibility business/
responsible business policy functions as a built – in, self regulatory mechanism whereby a
business monitors and ensures that activities are complied with, in the spirit of the laws, ethical
standards, and international norms. The goal of CSR is to embrace responsibility for the
company’s actions and encourage a positive impact through its activities on the environment,
consumer’s employees, communities, and all other members of the public who may also be
considered as stake holders.
The manager that deviates from the principles guiding CSR is likely to have his/her business
collapse within the shortest possible time without achieving its main aim and objectives.
Although CSR is meant to help the needs of the citizenry, a country is always obliged to come
out with some by-laws, which will be in the interest of the company and society.
Overview Of Corporate Social Responsibility (CSR)
In today’s world of business, CSR is increasingly important to consider as it helps organizations
manage their business processes to impact overall impact society. Businesses are now
encouraged to consider and, indeed, intentionally manage the wider social and environmental
consequences of their actions beyond the requirement of the legal and regulatory settings in
which they operate.
The call for organizations to be responsible to their stakeholders and communities within whom
they operate has varied interpretations. While some see it as a call in the right direction, others
think otherwise. For instance, Milton Friedman, a Noble Prize Winning Economist, argues that
the business of business is business. According to Friedman, any deviation from the task of
maximizing shareholders wealth is unfair. To Friedman, there is one and only one social
responsibility of a business, which is to use its resources and engage businesses in activities
designed to increase profits, while staying within the rules of the game.
The second important argument against corporate social responsibility is the competitive
disadvantage. This argument suggests that because social action will have a price for the firm, it
will also entail a competitive disadvantage. So either such works should be carried out by
government or at least legislated, all corporations or industries will be subjected to the same
requirement.
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2. The next important argument against corporate social responsibility is competence. Friedman
questioned that ‘if businesses have social responsibility other than making maximum profits for
stockholders, how would they know what it is’? This argument further states that corporations do
not have the technical competence to deal with social issues. Also corporations do not know
what is good for society and that government knows better.
Every organization regardless of size must meet the social needs of all stakeholders. Business
managers have social responsibility in the following areas,
First are economic responsibilities. The responsibility of a business manager in this regard is to
produce goods and services that society wants and maximize profits for its owners and
shareholders. Organizations must become socially responsible through the provision of jobs and
the payment of taxes (Pearce and Robinson, 2009).
Secondly, there is legal responsibility that all societies have laid down rules, laws and regulations
that businesses are expected to follow. Legal responsibility defines what society deems as
important with respect to appropriate corporate behavior. Businesses are expected to fulfill their
economic goals within the legal framework (Bartol and Martin, 1998).
Thirdly, ethical responsibilities: It includes behaviors and activities that are expected of
businesses by a society‘s members. These behaviors are not necessarily codified into laws and
may not serve the organization in terms of direct economic interest. According to Pearce and
Robinson (2009), firms are expected but not required to behave ethically. Being ethical means
going beyond the minimum legal requirement.
Fourthly, discretionary responsibilities: which include voluntary beneficial activities that are not
strongly expected of businesses by society members. It is purely voluntary and guided by an
organizations desire to make social contributions not mandated by economic, laws and ethics to
society. For example, Airtel Ghana built and furnished a classroom block for a school in Krobo
Odumase in the Eastern Region. UT bank also adopted a ward at 37 military hospital where they
are committed to its maintenance.
Approaches of Corporate Social Responsibility
Basically there are four approaches used in Corporate Social Responsibility. These are the
Obstructionist, Defensive, Accommodative and Proactive approaches.
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3. With the Obstructionist approach, managers choose not to behave in a socially responsible way.
They use this approach when they sought to prevent knowledge of their behavior from reaching
other organizational stakeholders and society at large.
In the Defensive approach companies and their managers limit themselves to the requirements of
the law and therefore do not go the extra mile to support the society in which they operate in
other means.
The Accommodative approach is practiced when companies and their managers behave legally
and try to balance the interests of the different stakeholder as the need arises. Managers with this
approach make choices that are reasonable in the eyes of society and want to do the right thing
when approached.
The forth approach which is the Proactive approach makes managers go out of their way to learn
about the needs of different stakeholder groups and making good use of organizational resources
to promote the interests of all stakeholders.
CONCLUSION
Corporate Social Responsibility (CSR) plays an integral part in the success story of every
organization because not only does it earn a good reputation for the organization but contributes
to improving the living standards of people in the community in which it operates and society at
large.
Organizations and their managers must see this task as an underlined obligation they have to
fulfill because it is their way of giving back to society. Society also contributes to the success
story of organizations through labor force and providing a conducive environment for
businesses to thrive.
Based on these constructs, it is imperative to point out that both society and organizations are
interdependent in their quest for development and success.
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4. Managers must therefore adopt the right tactics (approach) in their CSR so as to make the best
result of resources available to them. A successful manager needs to be dynamic and quick to
analyze a competitors’ CSR policy. This must however, fall in line with the organization’s
mission statement. The accommodative and proactive approaches are also quite ideal for
today’s business world.
RECOMMENDATION
One can say without fear that many organizations in Ghana are socially irresponsible. They
tend to close their eyes on the plights of society, even those plights that resulted from actions
and inactions of some organizations.
In order to curtail such societal neglect, we recommend that:
Existing legislations in the country must be enforced without fear or favor. State
machinery such as The Environmental Society Agency (EPA) must be well equipped to
ensure that organizations do not neglect their social responsibility. Governments must all
look for the nation’s interest in enforcing news without precedence to politics.
New legislations must be enacted to ensure greening environment to avoid the high level
of pollution of our environment leading to global warning, which is irreversible.
Before an organization is granted the green light to operate its main statement must
clearly spell out its CSR policy.
In as much as the onus lies on organizations to be socially responsible, society also has
the duty of ensuring a conducive environment for organizations to survive. Vandalizing
an organization’s property for failure to fulfill its CSR must be avoided but instead the
appropriate authority should be used to seat for a redress.
We also recommend that managers in their drive to satisfy the needs of society must be
cautious not to over spend and make the organization’s mission statement as a reference
when embarking on Corporate Social Responsibility.
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5. Appendix:
The benefits of Corporate Social Responsibility
Corporate social responsibility (CSR) is not just about doing the right thing. It means behaving
responsibly, and also dealing with suppliers who do the same. It also offers direct business
benefits.
Building a reputation as a responsible business sets you apart. Companies often favor suppliers
who demonstrate responsible policies, as this can have a positive impact on how they are
perceived.
Some customers do not just prefer to deal with responsible companies, but insist on it. The Co-
operative Group, for instance, places a strong emphasis on its corporate social responsibility and
publishes detailed 'warts and all' reports on its performance on a wide range of criteria - from
animal welfare to salt levels in its pizzas.
Other benefits of CSR:
A good reputation makes it easier to recruit employees.
Employees may stay longer, reducing the costs and disruption of recruitment and
retraining.
Employees are better motivated and more productive.
CSR helps ensure you comply with regulatory requirements.
Activities such as involvement with the local community are ideal opportunities to
generate positive press coverage.
Good relationships with local authorities make doing business easier.
Understanding the wider impact of your business can help you develop new products and
services.
CSR can make an organization more competitive and reduces the risk of sudden damage
to your reputation (and sales). Investors recognize this and are more willing to finance the
organization.
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6. References;
Baker, M (2011), corporate social responsibility consultant.
Okoli E. (2011), Corporate social responsibility as a business strategy, Guinness Ghana
Breweries Limited.
Smith N. C. (1990), Argument for and against corporate social responsibility, except from
morality and the market, New York, Routledge.
Pearce J. A. and Robinson R. B. (2009), Formulation, Implementation and control of
competitive strategy (10th edition), McGraw-Hill/Irwin, New York.
Bartol K.M and Martin D.C (1998), Management, (3rd edition), Irwin McGraw-Hill.
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