Corporate Social Responsibility

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Wikis > Corporate Social Responsibility

Definition

Corporate Social Responsibility (CRS) is a non-binding ideology that suggests that organizations and businesses have an ethical obligation to make decisions that act towards the benefit of society and its’ members. CRS strategies trade-off between progress in business development and the general welfare of society. It is a concept that states organizations should naturally make just and ethical decisions either actively, with direct social programs, or passively, by refusing to engage in socially immoral actions.

Criticisms

One large criticism of CRS is that it contradicts with the basic economic principles of business; some business decisions may be beneficial for the business yet harmful to the environment. Some examples include factories with high carbon emissions – these companies have been under social scrutiny for harming the environment yet it was cost companies thousands to millions of dollars to create new technologies to lower emission rates. Other issues include companies that utilize “sweat-shops” in foreign countries – the cheap cost of labor is an obvious benefit towards a companies expenses, yet the social cost is one that may put the company with a bad reputation.