Question

Many critics of CSR argue that corporate efforts to improve social welfare should not be voluntary, but rather be fully regulated and mandated by government law. In David Vogel’s view, should CSR efforts be voluntary or mandatory? Please cite your work.

Answer 1

Yes, CSR efforts should be mandatory because there are not so many companies which do business in the way that can benefit not only its shareholders but also society, customer and environment. This is because It depends on their choice that they want to take CSR initiatives or not.

If law or government make laws which mandate every organization to take CSR initiatives then instances like Volkswagen diesel scandal, Eron scandal, Wells Fargo scandal etc will not arise. Manadation of CSR initiative will help organization as well as other stakeholders because companies would be doing what benefit the customer, employees, society and environment. they would not be focused on just increasing and increasing the wealth of shareholders.

The profit oriented approach and neglect CSR leads to companies facing legal issues. VW cheated on emission test and put customers and environment on danger because ex CEO Martin did not want to lose profit by recalling the cars from the market. Wells fargo case involve forcing employees to meet targets otherwise they will lose their job such approach leads to cross selling where employees open as many as accounts of customers without their consent. such scandals were some example where Lack of CSR initiative cause loss to many people.

If there is law which can mandate CSR initiatives then companies will consider the focus of other stakeholders which is good for company as well as other stakeholders.

For ref you can search VW scandal, Eron Scandal, Wells fargo scandal as we can not provide external ref... by HomeworkLib policy.