The issue of corporporate responsibility Essay Example | Topics and Well Written Essays - 1000 words

The issue of corporporate responsibility - Essay Example Sustainability, at its core, reflects a more integrated and efficient management structure that would be adept to weather the economic downturn. Quoting from the World Economic Forum report, Smith (2003) elucidates three key pressures that impel businesses to incorporate CSR viz.: linkages between corporate competitiveness, corporate governance, and corporate citizenship. a) Every business decision should embed the sustainability criteria: Porter and Kramer (2006) articulate: "the essential test that should guide CSR, is not whether a cause is worthy, but whether, it presents an opportunity to create shared value, that is, a meaningful benefit for society that also is valuable to the business." The Patagonia's mission statement captures strategic alignment of CSR with business: b) Build Brand through total wealth creation: Businesses ought to maximize the wealth all stakeholders through effective community investment and poverty alleviation programs. The wealth creation should be woven around green policies through innovative projects that protect environmental assets for the long term. c) Develop environmental projects focusing on economic exclusion: There's an urgent need for companies to refocus on their corporate responsibility to produce a pronounced positive impact on environment protection, and especially target eco... c) Develop environmental projects focusing on economic exclusion: There's an urgent need for companies to refocus on their corporate responsibility to produce a pronounced positive impact on environment protection, and especially target economically deprived areas for holistic growth. d) Partner More effectively: Partnering with government and NGOs can ease to an extent, the project funding issues, and dovetail the company's businesses with national growth strategies. Such an approach would also bring credibility for activities, and help gain public trust. e) Focus on governance and accountability: Especially in times of recession, the scrutinizing eyes of media, shareholders and government would continue to hover on companies, demanding transparency and accountability. Guarnieri and Kao (2008) noted that the 2007 Top Companies for Leaders are poignantly strategic and use CSR to help attract, engage and retain leadership talent. Leaders in such companies are encouraged to take leadership roles in social and community organizations. CSR thus becomes a critical component for leadership development strategy. CSR can be the best starting point for integrating societal considerations with business operations (Porter, & Kramer, 2006). Especially, in economically hard times, companies would be forced to reflect on their core priority businesses, and customers. In such situations, sustainability programmes can help to sieve the strategic business areas, and relook at the supply chain management with a "sustainability screening policy." Corporate responsibility can thus help pruning overheads, and effect cost savings through carbon accounting. Conflict between Luxury Branding and Environmental Concern Pinault spearheading the case for sustainable luxury believes that