buseth 3&4

• Corporate Social Responsibility

  a company to behave ethically and contribute to economic development while improving the quality of  lifeof its workforce and family members
• WHY SOCIAL RESPONSIBILITY A MUST FOR BUSINESSES?

  1. To develop profitability
  2. To become cost-efficient
  3. It facilitates in handling risks and uncertainties
  4. To maintain social license to operate/function
• EMPHASIZED THE FOLLOWING REASONS WHY

  businesses must consider implementing Corporate Responsibilities (CR)

  1. Enhanced stakeholder relations
  2. Catch the best Human Resource to work in the team
  3. Helps to create new products and services
• Triple Bottom Line

  1. People
  2. Profit
  3. Planet
• Stakeholder

  • an  individual or a group that, in the  context of a

  specific situation, is either harmed by, or benefits from, the corporation
• Normative

  it provides a reasoning as to why firms

  should/must be liable/responsible for their stakeholder‘s interests.
• Descriptive

  it  questions  the company‘s actual

  activities/steps that benefits their stakeholders
• Instrumental

  stakeholder theory tries to present an evidence

  whether there is a necessity for the firm to conduct  such CSR

  practices in relation to their stakeholders