Social responsibility for corporations partly differs depending on where the corporation is located and the classification of the corporation (McWiliams and Siegel, p. 604). At the least, there are five categories of corporate social responsibility being practiced by corporations from the different parts of the world. One of the most notable categories of corporate social responsibility is responsibility towards the environment. The issue of climate change and the increasing garbage problem from across the globe has heightened the calls for more environmental awareness among corporations and for more business practices that secure and promote the environment instead of degrading it.
For corporations under the manufacturing industry, waste products from their operations and composition of their traded goods are used as bases for categorizing the corporation and its goods as either environmental hazards or not. As far as corporate social responsibility is concerned, corporations are encouraged to engage into recycling measures and use raw materials that do not pose any significant threat to the environment.
Another category for corporate social responsibility is employer-employee relations insofar as wages are concerned. Employers should essentially pay the proper wages to their employees in the legally prescribed timeframe. Incentives should also be given to employees as well as other benefits depending on the nature of their job. Employees who are constantly exposed to certain threats such as health hazards for workers in a steel refining company should be given due compensation and health benefits either in the form of monetary benefits or health security programs.
Maintaining a healthy relationship between the employees and the employers is an important aspect of corporate social responsibility as it reflects the credibility of the corporation before the eyes of potential employees and the rest of the society.
Internal work standards and ethics are also a part of the corporate social responsibility. More specifically, cases of corruption in corporations adversely affect the performance of the corporation in many ways. If the corporation tolerates corruption within its premises, it can lead to serious doubts as to whether the corporation is also following the laws that govern the behaviors of corporations. It can cast doubts as to whether the corporation is paying the right amount of taxes prescribed by the law, or whether the corporation is accurate and honest in its financial reports to its stakeholders.
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The quality of the goods and services being provided by corporations is also a category in corporate social responsibility primarily because these are the things that the corporation sells to the buying public. If the corporation supplies defective goods and services while claiming a superior quality of what the corporation is offering, the fraudulent act can deceive a lot of its paying consumers. In the end, the consumers are paying for a good or a service at a certain sum and they think that they are getting what they expect when in fact they are paying something less at a higher price.
Providing the right quality for the right price is another important category for corporate social responsibility since the primary lifelines of corporations are the goods and services that they sell to the public. Social responsibility dictates that the corporation should be responsible enough in ensuring that the society and its buying public are getting what they deserve.
Finally, corporations should have measures in addressing public grievances in relation to the dissatisfaction that the buying public might have vented out regarding the goods and services of the corporation (Waddock and Graves, p. 308). As part of its social responsibility, the corporation should see to it that they are made well-aware of the feedback of their clients and other individuals in the society regarding the use of the company’s products and services. A corporation that is responsible to the society makes sure that it is able to address the suggestions and complaints of their customers and the society since both are essentially two of their stakeholders.
McWilliams, Abagail, and Donald Siegel. “Corporate Social Responsibility and Financial Performance: Correlation or Misspecification? .” Strategic Management Journal 21.5 (2000): 603-09.
Waddock, Sandra A., and Samuel B. Graves. “The Corporate Social Performance-Financial Performance Link.” Strategic Management Journal 18.4 (1997): 303-19.