Corporate Social Responsibility: Benefits and Challenges
Corporate Social Responsibility
Defining Social Responsibility
Social Obligation: A company’s duty to meet its financial and legal responsibilities. This reflects the classical view where a company does only what it must do.
Social Responsiveness: A company’s ability to adapt to changing social conditions and respond to societal needs.
Social Responsibility: A company’s intention to go beyond its legal and economic obligations to do what is right and act in a way that benefits society.
Stages of Social Responsibility
- Shareholder Interests: Focusing on maximizing profits for shareholders.
- Employee Well-being: Providing better working conditions, addressing employee rights, and ensuring safety.
- Stakeholder Relationships: Building strong relationships with suppliers and understanding customer needs.
- Social Contribution: Promoting social justice, environmental conservation, and supporting social and cultural initiatives.
Benefits of Social Responsibility
Public needs and expectations have changed. Companies owe their existence to society and must respond to its needs. Creating social benefits advantages both society and businesses. Society gains through improved communities and job opportunities, while businesses benefit from a stronger community, which provides a workforce and consumes goods and services.
Social responsibility can discourage additional government regulation and intervention, giving businesses more freedom and flexibility in decision-making.
It also creates a favorable public image, attracting customers, employees, and investors.
Companies should leverage their resources, including managerial talent and capital, to address societal problems. They are often a source of new ideas and innovation.
Arguments Against Social Responsibility
Some argue that a company’s primary duty is to maximize profits by focusing solely on economic activities.
They contend that social responsibility leads to higher prices for consumers and excessive costs for businesses, diverting resources from core operations.
Another argument is that entrepreneurs lack the social skills needed to solve societal problems, as their training and experience are primarily in economic matters.
Examples of Corporate Social Responsibility
Compañía Minera Antamina
Won the “Social Responsibility Award” for its “Ally Micuy” program in the Ancash region. This program has reduced chronic malnutrition in children and provided essential vaccines.
Cáritas del Perú
Even the Catholic Church has embraced social responsibility, supporting the “Ally Micuy” program alongside Antamina.
Backus Corporation
Has developed several impactful social programs, including:
- Virtual School: Provides online educational resources and support to schools affiliated with Backus nationwide.
- “Put a Limit” Campaign: Promotes moderate and responsible alcohol consumption through mass media campaigns, including TV spots, radio ads, print ads, and billboards. This campaign also targets consumers in nightlife settings, emphasizing awareness and responsible drinking habits.