Corporate Social Responsibility and Business Law Essay Example for Free

Corporate Social Responsibility and Business Law Essay Introduction Our assigned topic deals with a phenomenon that has taken the corporate world by storm rather recently, particularly in Pakistan. It entails the dilemma that every corporation faces when they have to make decisions regarding the firm’s profitability and their corporation’s social responsibility. The term corporate social responsibility came into common use in the late 1960s and early 1970s after many multinational corporations formed the term stakeholder, meaning those on whom an organizations activities have an impact. It was used to describe corporate owners beyond shareholders. The field of corporate social responsibility (CSR) has developed exponentially in the last decade. Nevertheless, there remains a lingering debate about the legitimacy and value of corporate reaction to CSR concerns. There are different views of the function of the firm in society and disagreement as to whether wealth maximization should be the sole goal of a corporation. An escalating number of shareholders, analysts, regulators, activists, labor unions, employees, community organizations, and news media are asking companies to be accountable for an ever-changing set of CSR issues. There is rising demand for transparency and growing expectations that corporations measure, report, and continuously improve their social, environmental, and economic performance. According to Business for Social Responsibility (BSR), corporate social responsibility is defined as â€Å"achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.† Each company is at variance in how it implements corporate social responsibility, if it does so at all. The differences depend on such factors as any particular company’s size, the particular industry involved, the firm’s business culture, stakeholder demands, and how historically progressive the company is in engaging CSR. Some companies focus on a single area, which is regarded as the most important for them or where they have the highest impact or vulnerability—human rights or the environment, for example—while there are others who endeavor to incorporate CSR in each and every one facet of their operations. For successful execution, it is fundamental that the CSR principles are part of the corporations’ values and strategic planning, and that the management and employees, both are committed to them. Furthermore, it is important that the CSR strategy is aligned with the company’s specific corporate objectives and core competencies. As CSR comes into contact with many of the problems conventionally addressed by government, like human rights and community investing, there is strong censure that societal problems are best solved by freely elected government bodies as the resources of a corporation are poorly matched for addressing those social problems, and therefore, it is argued, they should not be misallocated. According to Friedman (1970), in a free society, â€Å"there is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.† The idea is that the state should address social problems, supported by the argument that an executive, by taking money and resources that would otherwise go to owners, employees, and costumers, and allocating them according to the will of the minority, and will fail to serve the interests of her or his principal. In this way, the executive imposes a tax and spends the proceeds for â€Å"social† purposes, which is insupportable, since she or he has neither the skills nor the jurisdiction to do so. On the other hand, there are many demands by others for corporate adoption of the CSR principles. Although the government is chiefly responsible for addressing those issues, the contribution of private firms can be substantial. There is also the argument of the shifting balance of power. According to the Organization of Economic Co-operation and Development (OECD), of the 100 largest global economies, as indicated by their respective GDP, 51 of them are US corporations, and only 49 are nation states. So economic supremacy has shifted to the corporations; they, therefore, should have an increasing role in and accountability for addressing social problems. For example, the government sets the regulations and the minimum standards for the workplace, but a company can further improve the work environment and the quality of living of its employees. A firm cannot stay oblivious to the problems of the environment in which it functions. The poverty of a nation state’s citizens, political unrest, and the exhaustion of natural resources can have destructive effects for a corporation. For example, resources that are inputs in the production process and which, at the foundation of the industrial revolution, were plentiful are now scarce, polluted, or diminishing in many regions of the entire planet. As one would expect, this imposes an extra cost to the corporations and may force them to reposition or to cease operations. From one perspective, companies may be poorly equipped to address some of the social or environmental problems, but from another perspective, no matter how poorly equipped, companies may still be best positioned to improve the problems. Undoubtedly, adopting the CSR principles involves costs. These costs might be short term in nature or continuous outflows. They may involve the purchase of new environmentally friendly equipment, the change of management structures, or the implementation of stricter quality controls. Since being socially responsible involves incurring costs, it should generate benefits as well in order to be a sustainable business practice. A corporation could not continue a policy that constantly generates negative cash flows. The shareholders invest their money in a corporation, expecting the highest possible risk adjusted return. Therefore, being socially responsible should have bottom-line benefits in order to be sustainable. Socially responsible corporate performance can be associated with a series of benefits with the final outcome. But in a lot of cases, it seems that the time frame of the costs and benefits can be out of alignment—the costs are in the near future, whereas the benefits are not often realized until long periods of time have lapsed. Nevertheless, many benefits can be identified. Firstly, socially responsible companies have enhanced brand image and reputation. Consumers are often attracted towards brands and companies with good reputations in CSR related issues. Therefore, a corporation’s brand equity is automatically enhanced. A company regarded as socially responsible can also benefit from its reputation within the business community by having increased ability to attract capital and trading partners. However, reputation is hard to quantify and measure; it is even harder to measure how much it increases a company’s value. But since companies have developed methods to measure the benefits of their advertisement campaigns, similar methods can and should be able to be applied in the case of corporate reputation. Socially responsible companies also have less risk of negative rare events. Furthermore, companies that adopt the CSR principles are more transparent and have less risk of bribery and corruption. In addition, they may execute stricter and, thus, more costly quality and environmental controls, but they run less risk of having to bear in mind defective product lines and pay heavy fines for excessive polluting. They also have less risk of negative social events which damage their reputation and cost millions of dollars in information and advertising campaigns. The scandals about child–labor and sweatshops that affect the clothing industry are two fine examples. Thus, socially responsible businesses should have more stable earnings growth and less downside volatility. Since companies that adopt the CSR principles carry less risk, when valuing those companies, a lower discount rate should be used. In the company valuation this lower tail risk should be taken into account. There are also other cases in which doing what is good and responsible converges with doing the best for the particular business. Some CSR initiatives can dramatically reduce operating costs. For example, reducing packaging material or planning the optimum route for delivery trucks not only reduces the environmental impact of a company’s operation, but it also reduces the cost. The process of adopting the CSR principles induces executives to reconsider their business practices and to seek more efficient ways of operating. Companies perceived to have a strong CSR commitment often have an improved ability to attract and to retain employees (Turban Greening 1997), which leads to reduced turnover, recruitment, and training costs. Employees, too, often evaluate their companies CSR performance to determine if their personal values conflict with those of the businesses at which they work. There are many known cases in which employees were asked, under pressure of their supervisors, to overlook written or moral laws in order to achieve higher profits. These practices create a culture of fear in the workplace and harm the employees’ trust, loyalty, and commitment to the company. Companies that improve working conditions and labor practices also experience increased productivity and reduced error rates. Regular controls in the production facilities throughout the world ensure that all the employees work under good conditions and earn living wages. These practices are costly, but the increased productivity of the workers and improved quality of the products generate positive cash flows that cover the associated costs. Thus, firms may actually benefit from socially responsible actions in terms of employee morale and productivity (Moskowitz, 1972). Literature review CSP is a global concept that encompasses those of Corporate Social Responsibility and Corporate Social Responsiveness. It provides a coherent framework to explore business-society relationships by looking at the social impact of corporations with business criteria of performance measurement, such as quality, efficacy, effectiveness, innovation (Carroll, 1991; Wood, 1991). The challenge for corporate social responsibility (CSR) in developing countries is framed by a vision that was distilled in 2000 into the Millennium Development Goals—‘a world with less poverty, hunger and disease, greater survival prospects for mothers and their infants, better educated children, equal opportunities for women, and a healthier environment’ (UN, 2006: 3). The penetration of the social realm into corporate strategy has gathered momentum in the last years. The movement for CSR has â€Å"won the battle of ideas† (Crook 2005). By now, most well managed companies have adopted th e practices and certifications mandatory in their industries, having gone through what Zadek (2004) calls the â€Å"defensive† and the â€Å"compliance† stages of CSR. Managing the social and environmental footprint of economic activity is generally accepted as part of the cost of doing business. But much remains to be done. If companies are to move their CSR activities from satisfying behavior and take their commitment to society and the environment to the next level, they will need to rethink their current approaches to CSR, tapping into the creativity of every individual. CSE, like all entrepreneurship, is not about managing existing operations or CSR programs; it is about creating disruptive change in the pursuit of new opportunities. It combines the willingness and desire to create joint economic and social value with the entrepreneurial redesign, systems development, and action necessary to carry it out. Accelerated organizational transformation faces a host of obstacles well-documented in the change management literature. Some people argue that media pressures the corporate managers and directors to behave in ways that are â€Å"socially ac ceptable†. Sometimes this coincides with shareholders’ value maximization, others not (Zinagales, 2002). Although there are several contested notions of what CSR should be and how it should work, there is some agreement upon what it broadly entails. A number of concepts and issues are subsumed under the heading of CSR, including human rights, environmental responsibility, diversity management, sustainability, and philanthropy (Amaeshi Adi, 2006), meaning that it is a complex area with an interdisciplinary focus. It is generally agreed that CSR involves corporations voluntarily exceeding their legal duties to take account of social, economic and environmental impacts of their operations. Consideration of the social, economic and political context demonstrates how CSR forms part of a wider strategic direction being taken internationally with regard to market relations and the pursuit of a range of objectives and goals. The context is in part provided by concerns about the numerous examples of irresponsible behavior on the part of corporations, ranging from colluding with oppressive regimes and in the overthrowing of governments (Alston, 2005) to issues relating to working conditions and the impact of unethical marketing practices (Richter, 2001). Such examples have demonstrated the need for the worst excesses of business to be curbed. The globalised economy is understood to raise important issues for businesses and governments due to changes in patterns of production and consumption. In particular it is noted that the manufacturing of goods is highly mobile (Cassell, 2001:263) and that supply chains are often dispersed in various countries, creating difficulties in terms of legislation and regulation. Moreover, economic globalization presents challenges to the ability of states to protect peoples rights (Cassell, 2001). The notion of corporate social responsibility is part of the third way (Gond Matten, 2007), where the role of the state is now to provide steering for the promotion of social development and social justice (Giddens, 2001: 6). There is increased involvement of the private sector in traditionally statutory provision through privatization and public/private partnerships (Meehan, 2003). Economic policies have created a need for markets and business to self-regulate in order to continue to pursue an international free market economy, but also to ensure sustainability of economic, human and other resources, and of the environment. CSR is seen as a solution to these problems of regulation. The private sector is increasingly seen as a key player in the achievement of many national and international strategic objectives for governments, which is also enabled by CSR. Methodology To gather information, we used secondary research as our main source of information. Various academic journals and internet sources were pursued to cater to the important aspects of the given topic. Moreover, since we thoroughly researched this topic, personal opinions were formed and using those and logic, we justified our opinions accordingly. How can business persons act in an ethically and socially responsible manner and at the same time make profits? Suppose clear-cutting is profitable and legal, but is nonetheless regarded as environmentally irresponsible under prevailing social norms. Can management of a timber corporation decline to clear-cut its timberland even though that sacrifices profits? One might be tempted to evade the question by claiming that being environmentally responsible is profitable in the long run, either because it preserves the forest for future harvesting or because it maintains a public goodwill that aids future sales. But suppose, in an incautious moment, management admits that the present value of those future profits from not clear cutting cannot hope to match the large current profits that clear-cutting would produce. Or, more realistically, suppose a takeover bid by a firm known to clear-cut establishes precisely that proposition by offering far more than the stock price that reflects the current stream of profits. Can management reject the profitable takeover bid on the grounds that it will lead to socially undesirable clear-cutting? The answers to these questions will challenge the canonical law and economics account on corporate social responsibility, which goes something like this. Unless modified by statute, traditional fiduciary duties require corporate managers to further the interests of shareholders, and thus require them to maximize corporate profits subject to the obligation to comply with independent legal constraints. Ethics and social responsibility are very important values in business ventures. This is particularly essential in decision making process. Ethical conscience reminds business persons to make trustworthy and profitable business decisions. Likewise, the social responsibility component requires business persons to make entrepreneurial decisions that can enhance benefits and repelling harms to the stakeholders. The canonical law and economics view holds that corporate managers do and should have a duty to profit-maximize because such conduct is socially efficient given that general legal sanctions do or can redress any harm that corporate or non-corporate businesses inflict on others. If certain conduct imposes excessive harm on others or merits taxation, then an independent law should regulate and impose liability or taxes whether or not the actor is a corporation, and if the conduct does not impose any impermissible harm or merit taxation, then the most socially desirable thing for corporations to do is maximize profits. Other stakeholders could either legally protect themselves by contract with the corporation or have their legal protection provided by judicial gap-filling of such contracts. Part of what makes this account canonical is that it helps define the boundaries of the corporate law field. It leaves corporate law scholars free to ignore issues about any effects the corporation may have on the external world as topics best addressed by other legal fields, and to focus on more tractable models about which corporate rules would maximize shareholder value.

Legalization Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The legalization of marijuana   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The Legalization of Marijuana   Ã‚  Ã‚  Ã‚  Ã‚  For the last fifty or so years it has been a crime to possess, consume, or distribute marijuana. Any rapid change in legislation toward legalization would be impossible in today’s culture. Due mostly to the overwhelming popularity of this drug it could never possibly be legalized. Any process of legalization would create unrealistic demands upon society that would affect every facet of life both domestic and abroad. Marijuana is the most widely used illegal substance in the world, and in America nearly a third of all citizens have admitted to being exposed to it at one point in their lives. Some people have been subject to harsh criticism by admitting to using marijuana even once in their lives. This guilt that is associated with the use of marijuana is probably the only reason for its illegality. Marijuana is seen as a reckless expenditure of adolescent rebels, or as a habit of minorities that consumes their lives and forces them into the common stereotypes of poor huddled masses that contribute nothing to society except ...

Tale of Two Cities

Tale of Two Cities In the opening quote of â€Å"A Tale of Two Cities†, by Charles Dickens, a very complex sentence is stated that consists of anaphoric contradictions. Many of these contradictions contain phrases where one side of the contradiction has a negative connotation and the other has a positive connotation. In contemporary times, many events contain match the contradictions stated in the quote. There are many examples of events that go along with the quote, but prime examples include the feud between Iraq and the USA, third world countries, and many economic and health problems. It was the best of times, it was the worst of times†. This opening quote of â€Å"A tale of Two Cities† can relate to many things in contemporary times. One example that represents this quote clearly is the constant feuds between the US and Iraq. One minute, America is calm and clear of disputes, just continuing on everyday lives, when suddenly, out of the blue, one of the bigges t terrorist attacks occurred, and the US is declaring war with another country.Also, while daily life in America is usually normal and ordinary, overseas, a war is taking place, and soldiers could lose their lives any minute. While people in the USA could be having the best of times, the worst of times could be happening to many people elsewhere. Next, another part of the opening quote that relates to modern times is â€Å"We had everything before us, we had nothing before us. † Not only does this relate ti the poverty- stricken people in the world, but more promptly the people in third world countries.In the United States, most people always are able to provide themselves with necessities and have everything before them. On the contrary, many unfortunate people in third world countries barely have anything before them. Lastly, another quote from the opening statement of the book is â€Å"It was the spring of hope, it was the winter of despair†. This quote can relate t o many different things. An example could be a hopeful country receding into a recession or depression. Many economies lead populations from hope to despair.Another match to the quote could be the victims of cancer hoping to be cured; but feeling despair when informed about the lack of a cure. Many things and events in this world leave people hoping, and then lead them straight to despair. In the end, the quote by Charles Dickens stating contradictions in the beginning of â€Å"A Tale of Two Cities† can relate to contemporary times, even though written in a much earlier time period. Many of the contradictions stated coincide with many events happening currently or in the past. Tale of Two Cities During a time of lost hope, death and war, the `golden thread', Lucie Manette plays the roll of a heroine doing everything she can to make sure the important people in her life are loved. Lucie provides not only warmth toward her father, Dr. Manette, but also towards the man that yearns for Lucie's love; Sydney Carton. Despite all the negativity that surrounds Lucie and her loved ones, she doesn't fail to lead her father and Carton to rebirth. During a time of lost hope, death and war, the `golden thread', Lucie Manette plays the roll of a heroine doing everything she can to make sure the important people in her life are loved.Lucie provides not only warmth toward her father, Dr. Manette, but also towards the man that yearns for Lucie's love; Sydney Carton. Despite all the negativity that surrounds Lucie and her loved ones, she doesn't fail to lead her father and Carton to rebirth. Unlike the process of actual birth, rebirth is associated with rejuvenation. Rebirth is a second or new birth and in the case of A Tale of Two Cities it is deserved. Rebirth is portrayed as nothing close to the literal meaning of birth at all. Charles Dickens makes it obvious that Dr. Manette and Carton both deserve a second chance by showing that they both really are good people.In chapter 19, Dr. Manette earns rebirth by gaining the strength to mentally and literally walk away from the negative attitude that is associated with his shoemaking bench and his past times. Carton shows that he deserves rebirth in chapter 13 by proving that he is a good and caring person when he tells Lucie that even though he craves her love, all he wants is for her to be happy. After Dr. Manette's imprisonment in the Bastille for 18 years, the only thing he willingly says is `105 north tower` and is seemingly hypnotized by his shoemaking bench. This is where Dickens lets the reader know that Dr.Manette's imprisonment drives him insane. When Dr. Manette is rescued by Defarge and brought to his `long lost ' daughter, rebirth does not take place immediately, as the doctor continues to repeat things to himself. In chapter 5, Lucie is portrayed as a caring character simply by the description given of her, as well as others reactions to her. â€Å"†¦ His eyes rested on a short, slight, pretty figure, a quantity of golden hair [and] a pair of blue eyes that met his own. † From simply the description given of Lucie, she can be recognized as a caring person.Lorry's reaction to Lucie also strengthens Lucie's caring glow. â€Å"As his eyes rested on these things, a sudden vivid likeness passed before him of a child whom he had held in his arms†¦ † As Dickens compares Lucie to a child, her innocence is proclaimed. Although the rebirth of Dr. Manette does not take place immediately, Lucie shows her love for her father from the beginning of his arrival. In chapter six of book the first while Lucie is greeting her father for the first time in 18 years, she tells him that à ¢â‚¬Å"the agony is over†¦ I have come here to take you from it†¦ This is where the rebirth starts because this is where Dickens lets the reader know that Lucie is going to do all she can for her father and give him only love. After Dr. Manette's return to England, its obvious that the doctor is slowly returning to sanity in chapter five when Dr. Manette is able to make full conversation at Charles Darnay`s trial. In chapter seven of book the third, the narrator updates us on Dr. Manette. â€Å"No garret, no shoemaking, no One Hundred and Five, North Tower, now! He had accomplished the task he had set himself. This is where Dickens lets us know that Dr. Manette's return to sanity has been completed. While Lucie continues to care for her father, another man, Sydney Carton, makes it known that he as well needs Lucie to cure him. Just as Lucie did with her father, Lucie will try and do all she can to help her dear friend Carton. In chapter 13 when Carton stops at the Manette' s house, he has a conversation with Lucie in which he tells her how he feels about himself. At the peak of this conversation, Lucie says â€Å"can I not recall you†¦ to a better course?Can I in no way repay your confidence? † This makes it known that Lucie will be the one to give Carton a second chance. Lucie does in fact use her love and sympathy to lead Carton to rebirth and Dickens later shows the effects Lucie has had on Carton. â€Å"[Carton] was so unlike what he had ever shown himself to be, and it was so sad to think how much he had thrown away†¦ † This a totally new tone that is shown by Carton, whereas from the start of the book to the introduction of Lucie and his conversation, he was described as a drunk nobody that obviously thought nothing of himself.In chapter four of book the first Darnay comments to Carton â€Å"I think you have been drinking, Mr. Carton. † To this, Carton responds † Think? You know I have been drinking. I am a d isappointed drudge, sir. I care for no man on earth and no man on earth cares for me. † During chapter 13 where Lucie says to Carton â€Å"I entreated you to believe again and again, most fervently, with all my heart, was capable of better things, Mr. Carton! † Lucie has saved Carton by letting him know that she believed in him. Both Dr. Manette and Sydney Carton have been saved by the impact of Lucie's unfailing care.Lucie saves her father by simply caring for him and being a friend, and she also saves Sydney Cartons life by believing in him and letting him know that he meant more than he thought. The characters in A Tale of Two Cities obviously play predominant roles in each other's lives, and resurrection, or rebirth is one of the main themes in this novel. Dickens uses the power of love to oppose war that is surrounding all of France and England. Resurrection was a very clever theme for Dickens to use because if the characters in A Tale of Two Cities couldn't be rec alled back to life, they would simply die off.

Comparing Laozi Gathered Eighty Seven And Book Two Books

1. Laozi gathered eighty-one short texts and placed them into two books. Book one contains thirty-seven and Book two consist of thirty-eight. Each passage falls into one or more themes. These themes are; the Way, Non-desiring, Knowledge, Value, Non-action, Nothingness, and Nature. In the thirty-seven chapters each one describes a different aspect of The Daodejing. In chapter eighteen, the Way is used to describe the text because it says â€Å"When the great Way is abandoned, there are benevolence and righteousness† (Laozi,167). By this, it is talking about the Way in the first sentence, then it continues to connect to the Way. Also, in chapter thirty-two, it talks about the Way. It says that the Way is nameless, therefore because it does not have a name, there is no certain path to you can take to master it. The next theme is Non-desiring. In chapter seven, it talks about if you want something it will not last forever. But if you are selfless and realize that you need to put yourself first, then you are in a state of Non-desiring. It also talks about Non-desiring in chapter nineteen. In the chapter is says if we eliminate certain actions, then we will receive better out comes. If you do not do anything bad, then there could not possible be any bad to come. The next theme is Knowledge. In chapter twenty-four, it says â€Å"Those who stand on tiptoe cannot stand firm. Those who stride cannot go far† (170). It means, if you are educated and know how to live without desiring or