Sunday, December 22, 2013

Corporate Social Responsibility

Corporate Social Responsibility
Corporate Social Responsibility (CSR) is one of the heated concepts in today’s world. It is what business does over and above the statutory requirement for the benefit of the society. The essay reveals the exigency of corporate social responsibility in modern era as the activities of an organization has a notable impact on the external environment. Any action of a corporate does not merely affect its shareholders alone but also affects external environment. Example: effects of competition between itself and other organizations in the same market or enrichment of local community through employment opportunities. The research would reveal the modes through which a corporate undertakes social responsibility and the implications of it not just for us as individuals but also as members of communities and society at large. The next area of concentration would be the problem of conflict of interest in accounting in the corporate world. Conflicts of interests arise as sometimes the accountants encounter many opportunities to neglect professional duties in pursuit of private interests. The components that define the conflict of interests are studied. Chiefly recognized conflict of interests are political involvement , private gains from official positions , use of official property , abuse of office and neglect of public interest. Few scholars however, argue that CSR is yet another myth. However, there are few who dissent this argument stating that Corporations are busy re packing their behavior as Social Responsibility as there is a grave need for such action. Concepts such as the stakeholder concern, social contract and Agency theory are studied to consider if it really is a myth or not. More than just a theoretical approach, a practical case study has been adopted. Ambuja Cement, a company established has been taken as a apt example to study how CSR enables a corporation to reap benefits of improved sales, consumer loyalty, sustainable competitiveness and enhanced reputation.
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