Question

Critically evaluate and discuss the issue of corporate social responsibility from the perspective of Business,Government and Society and how are they inter- related?

Answer 1

From perspective of Businesses -

1) Many a times some corporate social responsibility comes from popular beleifs and idea though not required in a specific socieity. It burdens the businesses there and also the resources end up in issues which are of less importance and hence benefits not much to society as well.

2) Small businesses have to suffer at times when it faces competition from large MNCs and despite not being able to spend on huge CSR investments, it spend and end up miserably.

3) It becomes a strong expectation from every business, though it is voluntary. Such expectations sometimes become too costly for businesses.

4) Business failures may also results as decrease in value creation because of imposing inappropriate standards on CSR activities.

From perspective of Governments-

1) When CSR activities are promoted by business, government loose tie on such issues which are being addressed by the CSR activities. Although it is mandatory to take care of the issues by government but it does not as much as required because of businesses already interest in those issues.

2) Corporate houses get much say and bargaining powers as lobbyist when they are engaged in CSR activities. SUch activities make them influence the government functioning in inappropriate manner.

3) Businesses also use this argument of CSR involvement to excuse themselves from not complying the required standards.

From perspective of SOceity -

These critics can eaisly be drawn from the above points

1) As many a times much resources are not invested in optimal places, it does not benefit society and in fact waste the resources.

2) Non compliance of standards which are mandatory on the argument of engagement in CSR activities actually harm society more than any benefit from those activities.

3) Again increased barginaing power of corporate houses and their influence of governmet functioning also result in such policies and regulations that harm society's wellfare.