Some aspects of the corporate social responsibility model are the economic obligation to turn a profit and the ethical obligation to abide by laws. In addition, ethical aspects of the corporate responsibility model require a company to pay fair wages, act in an way that preserves the environment and support philanthropic causes.Continue Reading
The corporate social responsibility model seeks to manage all aspects of business in order to create a positive impact on society. Ensuring the corporation's economic success has a positive impact on society because employees keep needed jobs. In addition, with a profit, the company's leaders can focus the company's collective attention on making a positive impact in society in other ways.
A corporation following the corporate social responsibility model must follow all laws, including those pertaining to labor and criminal laws. Many of these laws ensure that the corporation acts in an environmentally responsible manner. Securities regulations also ensure the financial responsibility of a socially responsible company.
Additional ethical responsibilities of the social responsibility model require a corporation to refuse to conduct business with oppressive countries. Even if laws do not require environmentally friendly behavior, ethical components of the social responsibility model require a corporation's leaders to direct corporate actions in ways that protect the environment.
The philanthropic aspect of the social responsibility model requires a corporation to support charitable causes. Philanthropic activities include making donations to charitable causes or working directly in the community to support community-building activities. A corporation must also respect cultural differences as it conducts business.Learn more about Business Resources