Is Corporate Social Responsibility CSR an institutional mirror or substitute
By practicing corporate social responsibility companies can be able to understand and be cautious of the kind of impact they are having on the society. But the question here is it really an institutional mirror or substitute. However, corporate social responsibility can as well take a broad concept depending on the company or the industry. Many companies indeed participate in corporate social responsibility as a way of giving that to the society but with the aim of showing the institutional image to the society. It is the obligation of the company to make sure that it can positively impact the society both socially and economically hence this is a requirement for them to be accepted by the society (McWilliams, 3). When the public identifies that the company is operating as per their expectations they will be able to as well support the organization hence it as well qualify as an institutional mirror for the organization.
Nevertheless, in order for a company to be regarded as socially responsible for its external environment, it first must be responsible for itself and the stakeholders of the company. The public can get to accept the institution if has a good internal reputation, it will act as some sort of confidence to the public. What they see from the outside is what they actually expect to receive as well, if the company treats its employees and shareholders with the required status then it is ready to go for corporate social responsibility. The company transacts business with the public and that is why it must be concern about their welfare. Through Corporate social responsibility, there will be the utilization of natural resources as part of the production process; the aim of the institution may be to explore the untapped natural resources both for the benefit of the institution as well as for its own benefit.
The impact can greatly be felt by the company in which the organization operates (Weber and David, 316). Getting a clear understanding of the market dynamics will enable the organizations to be able to identify the situation under which the community requires their service. Corporate social responsibility can as well be an institutional mirror through enriching the local community through the creation of employment opportunities. The institution identifies itself through offering employment opportunities to the locals of the area under which the institution operates, the institution can as well respond through the integration of its workforce to the needs of the community. For those institutions which give back to society more, there is a probability they have been performing well over the years (Suliman et al, 15).
This would actually be a good strategy of measuring its performance on a social lens. With time comparative measures are very important for enabling the owners and managers of this institution to decide on the best actions they would take for the business in order to better its performance in the future as well as being able to understand the needs of the society and mutually meeting them. Moreover, institutions engage in corporate social responsibility with the aim of maximizing shareholders value. The value of the institution to the society actually depends partially on profit generation with the value of assets it generates. "Corporate social responsibility. " Wiley encyclopedia of management (2015): 1-4. Schwartz, Mark S. Corporate social responsibility. Routledge, 2017. "Corporate social responsibility.
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