What is social responsibility?
introduction.
Would you believe if I tell you that if the Nobel laureate Milton Friedman (1962) as opposed to the underlying premise of corporate social Responisibilty and feel that is the sole responsibility of enterprises profit maximization.
He wrote in his book “Capitalism and Freedom, this statement:
“The object was to gain widespread acceptance that corporate officials … … have a social responsibility, which shows the interest of their shareholders will …. This review is a misunderstanding fundamental about the nature and the nature of a free economy, there is one and only one social responsibility of business – to use its resources and activities that its profits as it stays within the rules of the game increases. “< / P>
This statement is a narrow view and selfish company.
It implies that the social responsibility of managers is to get as much money as possible for shareholders. ” This view reflects the character and essence of a free economy.
This view is supported by the argument that is often used in a free economy, “let the market decide” defended.
the issue of corporate social responsibility (CSR) has been the growing concern of the economy in recent years. For example, says Lord Sieff, former chairman of Marks & Spencer plc, the companies are a contribution to society as a whole, if it is efficient, profitable and socially responsible (Cannon, 1992). Companies such as Johnson & Johnson also believe it is the responsibility of a company, to be fair, honest, reliable and respectful relations with all its components (Johnson & Johnson, 2000).
Volkswagen
defines CSR as a business capacity to assume their responsibilities in society, to develop solutions to economic and social problems. These positions indicate that CSR is still a major concern for companies in the world. CSR has also served as an ongoing commitment to corporate ethics and contribute to economic development while improving the quality of life seen workers and their families.
At the time
changed? Why the views of managers today have changed drastically in the narrow vision of the classical school?
Tiger Woods, the legendary golfer the world number one, Hugh has invested large sums of money setting up training courses and education for young people today. It does not selfishly keep its huge profits, while its future profitability may be reported to grow even more explosive. Other leading athletes and women attended and are busy coming on risk socially desirable for people less fortunate.
Experience Malaysia / strong>
Although CSR has
most public attention in developed countries received, CSR is also a major concern in recent years in Malaysia, where several NGOs such as’ Sahabat Alam Malaysia Association, Federation of Consumers in Malaysia and the Consumers Association of Penang (CAP) and many others have raised questions relating to environmental pollution, health threats, products, product safety, discrimination against disabled and drug abuse (Abdul Rashid, 2002). These questions have been raised the attention of government and legislation introduced to prevent the problems come from the hand.
For example, the Environmental Quality Act was introduced in 1974 to enforce laws to fight against the problems of environmental safety and pollution (Abdullah, 1991). Environmental Impact Assessment (EIA) has been made mandatory for construction companies before permission to build new houses have been / real estate sectors (Teoh and Thong, 1996). various laws dealing with drug abuse have also been introduced by the Ministry of Health, to reduce the distribution and supply of drugs have potential side effects (Abdullah, 1991).
CSR concepts and
In 1960, Keith Davis described as a social responsibility “of decisions and actions based at least in part, directly outside the organization for technical or economic interests have been taken. In 1971, the Committee for Economic Development made the following statement on corporate social responsibility: “Today, it is clear that the terms of the contract between society and the economy are indeed significant developments and important points. Business is asked to assume greater responsibility for society, than ever before, and a broader spectrum of human values called to serve. companies, behind, in fact, over the quality of American life, contribute to the mere provision of quantities of goods and services. “ Since then, the issue of CSR is that which has been widely discussed. There are those, like Milton Friedman (1962), who opposed the underlying assumption of CSR and the feeling is the sole responsibility of businesses to maximize profit. On the other hard, Frederick William C. (1960), the resources available to the company feels should be “used for purposes of society, not just the narrow interests of individuals and businesses. also presented in 1991 Edward R. Freeman and Jeanne Liedtke seven reasons why the notion of social responsibility is often abandoned. One reason:
corporate social responsibility promotes incompetence by managers to involve them in areas outside their expertise – that is, repair of social ills. the question of whether companies are able to address social ills through the analysis of business decisions and impacts of an organization that has received much publicity for its alleged social responsibility. approaches
school but focuses on the micro level analysis of how individual companies might be more responsible towards society. Robert Ackerman, in his model suggests that the answer should be the goal of social enterprise. He described three stages: 1) at the executive level, 2) personnel specialists, and 3) field lines passing through the business owners who tend to develop a response to social issues (Stoner et al ., 1995). Carroll suggests in his model into four parts by the length of the bars that are the primary responsibility for economic development and legal. It must produce the goods and / or services that society wants and legally and they must sell at a profit. But he has commitments ethical and discretionary. Carroll said that if companies fail to recognize its own initiative or ethical responsibility, the Company is to maintain and bring them into the legal framework (Carroll and Buchholtz, 2003). Before that happens, it is advisable for companies to understand and facilitate social activities on a voluntary basis. researchers from other schools of thought address the macro level of analysis. They prefer that the government, not individual companies must establish and reach a land of social goals. Friedman’s case was based on two central arguments of the economy and other legal issues. From an economic standpoint, he said that if project managers spend corporate funds do not seek to maximize profits, the efficiency of the market mechanism is compromised and resources are unevenly distributed within the economy. In legal terms, Friedman said, because managers are the representatives of the shareholders, their only obligation, financial performance so as to maximize it. corporate resources for social spending, are essentially the theft of shareholders (Friedman, 1962). Levitt argued against fear CSR that companies could begin to dominate society. He estimated that the company is also an institution of the twentieth century, the medieval Church, embracing the institution in the society (Levitt, 1958) has become. explained above, are very common in the world and the industrial scenario in Malaysia. The next chapter is a detail on the current scenario, it is the attitude of the Government and Malaysian companies to CSR. approach to CSR – Current
recent years, CSR has been of great concern in Malaysia. Several nongovernmental organizations (see Table 1 for details) raised issues related to CSR. These questions have been raised the attention of government and legislation enacted to prevent problems. Non-governmental Raised CSR Consumers Association of Penang
(CAP) “Sahabat Alam Malaysia Environmental Quality Act has been introduced to enforce laws against the problems of environmental security and environmental pollution.
environmental impact assessment (EIA) has been made mandatory for construction companies before they were to leave, new apartments / real estate to develop the regions.
Ministry of Health, several laws relating to health risks, products, product safety, discrimination against persons with disabilities and drug abuse. Table 1: Non-governmental organizations and the issues raised related to CSR < ; / p>
Source: Abdul Rashid (2002), manager attitudes “towards social responsibility, based on Pan Pacific Conference, KL, pp. 218-220 Users
take the pressure more and more managers of these methods to achieve the objectives of the company could. Values and Ethics at this point moot. However, not all businesses are alike, and many of us have come to the cause of society. accounting in 2005 shows that its still a positive trend in that Malaysian companies have their involvement in CSR activities improved. 87th Five percent of respondents agreed that their companies in CSR activities, reducing the level of business involvement in CSR activities included in Table 2. The results also suggest that respondents clearly disagreed on the six negative statements about CSR and have been in 1995 than in 2005. Articles <; / p> ; 2005 1995 employees
welfare (Service & Benefits) 91st
> 8 91st
> 8 Responsive consumer complaints 82nd
> 9 86th
> 4 maintain the quality of the product / service for consumers 76th
> 7 82nd
> 7
62nd> 3 64th> 5 donated to charities 60th
> 3 80 standard contribution to sport and 35th 6 70th
> 9 contributions to culture and / or “literary / p> 34th
> 9 The use of “disabled person w / 32nd
> 9
15th
> 1 contribution for public facilities (eg bus stop shade) twentieth> 9 help overcome problems related to drug abuse and 21st> 2 contribution to educational institutions (excluding research grants, including grants, scholarships for students) ; 24th> 7
provide loans for low income 28th
> 1 ready to offer businesses
21st> 9 Table 2: Areas of CSR in the Malaysian that investigation Abdul Rashid, MZ (2002) suggests there are more positive attitudes towards CSR in the financial sector in telecommunications, manufacturing or construction industry. The financial sector should be more careful and more aware of the role of banks in CSR. Abdullah (2001) in its report stated that the differences between sectors on their priorities in terms of CSR activities. Malaysian leaders and managers had a positive attitude towards CSR. The extent of their involvement in CSR was lower today, the extent of corporate disclosure on CSR has been a bit higher than a decade ago. The level of awareness of CSR seems to have improved somewhat in Malaysia. Towards CSR
underlying values of the target audience for KFC have changed, even if it was the world’s leading brand for over three decades (Cannon, 2002) can no longer be solely on the convenience and consistency Product as a unique selling points. KFC management clearly understands that a strong corporate culture must be integrated focus on consumer health, quality initiatives and socially responsible. The new campaigns or new product lines, are not sufficient to maintain and attract new customers, KFC needs to redefine its value to the brand. Goyder (1981), “The industry in the period ahead will not be considered more as a private arrangement to enrich the shareholders. It became a joint venture in which workers, management, consumers, the village, government officials and union all play a role. “As the main users of the nature of society and the environment, companies can play an important role in protecting nature and environment and promote social objectives. KFC is working in partnership with the government, or to possess. For example, it must define a “CSR Department of Management and implementation of their CSR activities including corporate governance, according to law, business ethics, established in Internal Control environmental management and corporate citizenship. benefits of KFC profits are donated to the population, major philanthropic foundations and other activities; Figure 1 shows the details of the KFC profitability and expenditure. Figure 1: Profitability and expenses of the company of KFC Malaysia / b>
Source: Business Excellence Measurement, Vol 9 No. 1, 2005 aid and donations distributed in five sectors (community, environment, people, quality and safety and compliance with health and welfare) have reported accounts of CSR KFC Malaysia the details will be shown below in Table 3. Industries <; / p> ; KFC Malaysia raised Rm 4007, 421 assistance to Malaysian children in need.
KFC in Malacca where a RM 40,000 donation to support the victims of the flooding. local franchises have been heavily involved in fundraising activities for families to help people affected by floods. crates of all dairies that supply KFC restaurants in Malaysia with ice milk, milk and cream.
Approximately 95% of the box behind the counter at KFC to be recycled.
KFC fry box packaging is made from recycled paper to 50%, 35% post-customer. People Human Resources Hot Line provides employees with immediate attention to questions about their employment at KFC.
regular exposure (expression) are surveys of employees. quality security and compliance KFC is to its customers healthy food, food KFC is the number one priority. treat animals with care and respect is part of a comprehensive quality systems economically viable.
Health and Wellness / p> improved the quality of chicken nuggets by the passage of popular meat white meat white and black chips mixture OT.
customers and public education, available at KFC sites Table 3: KFC Malaysia ,, CSR activities in 2006
Source: Report on CSR KFC, http://www. Haas. Berkeley. edu / responsiblebusiness / KFCCSRFellowsProgram. html [30-Apr-2007]> Quotes analysis of CSR activities of KFC KFC shows that doing what is just being a good neighbor, a good corporate citizen, committed and a good employer in each community in which we live and work. And they have a proven track record of listening to customers and responding with innovative ideas to customers with new needs. Conclusion
increase the market power of the retail world of fast food and high visibility with the KFC brand, it has a target for the two government campaigns in the public interest ( example, the Food Standards Agency to promote healthy nutrition), and for citizens ‘Consumers and advocacy groups (such as the Consumers’ Association). In the coming years, as corporate responsibility, business ethics and corporate communication of relevant information centers are increasingly important interest.
Moreover, diversification and adoption of mutually reinforcing policies, companies need new measures of performance, new ethical standards and a new awareness of several lines below, rather than just profits they grow in the past. You need more lines below – for information, social, ecological and ethical – interconnected and must focus each other. Therefore, companies should consider a high value on ethical issues in carrying out their role, because if ethics are missing, the economy and society would not flourish as a whole.
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