How to balance corporate and social responsibility with the need to enhance financial performance.

Essay by dic8xxUniversity, Bachelor'sA, March 2005

download word file, 2 pages 4.7

Downloaded 109 times

How to balance corporate and social responsibility with the need to enhance financial performance is a frequently discussed topic with many people across the globe. Liz Emerson stated, "Corporate social responsibility is about how companies relate to their suppliers, how they manage those relationships and if they work in an ethical way".

"Corporations can build up shareholder value by involving actively in more corporate social responsibility programs for the community" said, Chairmen of Permodalan Nasional Bhd, Malaysia's leading investment institution, Tan Sri Ahmad Sarji Abdul Hamid. Also in front of the Asian forum on corporate and social responsibility Ahmad Sarji said, "Corporate leaders have to look at the wider responsibility to the communities within which they operate, and pay attention not just to economic returns but to the environmental and social impact of their business as well". Acorroding to the Council on Economic Priorities and Worth Magazine (2001) the most generous corporate philanthropists were very generous, twenty-five U.S.

corporations donated at least $50 million a piece. Among those top donators were Philip Morris which donated the most cash, 98 million to various causes, Wal-Mart gave over 96 million in the communities where is has stores, no including the $68 Million donated from the store fundraisers. Two of the benefits of having a higher corporate social responsibility a company can increase its reputation; this will increase chances of forming new clients, and satisfying old ones. Finding great employees is never a problem with companies who have a high corporate social responsibility, because it will draw in and hold on to all top notch employees.

Priscilla Wisner, an assistant professor at Thunderbird, The American Graduate School of International Management says, "Good corporate governance is not just a legal necessity these days but can reap financial rewards. Her studies of 215 companies...