Business Leaders and Corporate Social Responsibility

Ethics and Social Responsibility for Business
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Why Business Leaders Need to take CSR Seriously
A business refers to a set of relationships among groups involved in the activities conducted in the business. It entails how employees, customers, suppliers, communities, and financiers create value. The customers, suppliers, workers, financiers, society, and managers play a crucial role in today’s business operations. A proper understanding of the business involves an explicit knowledge of all stakeholders’ relationships. The role of an entrepreneur is shaping and managing the relationships hence delivering the title “managing for stakeholders.” Generally, creating and running businesses entails managing stakeholders. The 21st-century enterprises focus more on managing for stakeholders, and the role of executives involves the creation of more value for stakeholders without exploitation of exchange (Freeman, 2010). Great companies thrive since they put stakeholders’ interests in the same direction. The paper illustrates why business leaders need to take corporate social responsibility seriously.
Stakeholder theory is a capitalist view that emphasizes the collaborative relationship between an enterprise and its customers, suppliers, workers, society, and other people interested in the business. The theory depicts that an organization should create value for every stakeholder, not just shareholders. Edwin Freeman initially explained the stakeholder theory of enterprise management and ethics, highlighting the morals and values involved in organizational leadership. The theory identifies and shapes the stakeholders of an organization and describes how the administration can address their interests (Freeman, 2010). Also, the theory has played a crucial role in the study of business ethics and provides a platform for further research. Stakeholders’ interests are interconnected, and it is not easy to accommodate every stakeholder’s interest. Business executives try to accommodate each stakeholder’s interest by practicing corporate social responsibility (CSR).
CSR refers to a self-governing business model that helps an enterprise enhance social accountability to its operations, stakeholders, and the public. Organizations are cautious about their effects in every aspect of society, such as economic, social, and environmental. CSR is a broad concept that takes different forms depending on the nature of the company and industry. Business leaders need to take CSR seriously since the activities are equally valuable to the organization. CSR activities facilitate the formation of a stronger relationship between workers and organizations, boost morale, and help both workers and management feel more connected to their surroundings (Plato, 2016). The accountability of businesses starts from within their organizations, where they need to illustrate responsibility to themselves and the shareholders. Many companies consider CSR as a crucial part of their brand. Customers are likely to conduct business with brands they consider more ethical. As expressed, CSR plays a vital role in promoting corpora...