Corporate Responsibility, Essay Example

Management Guru, Peter Drucker, once said that businesses should address problems of the society and ensure they eliminate elements that cause impact negative of the society. Drucker’s views collided with the views then that organizations had nothing to do with society’s problems. This depicts the significance of Corporate Social Responsibility (CSR). This report seeks to discuss Drucker’s argument that corporate social responsibility must be “bound.” It will also explain the distinction he makes between different types of social responsibility.

The main reason why Drucker argues with the perception that corporate social responsibilities must be ‘bound’ is because he views social responsibility in a number of ways. First, he believes that CSR implies commitment, through policies and action. Social reporting and social audits are examples of how firms can assess their social performance.

He also mentions that the conceptualizations of ‘society‘ and the ‘social’, which were central to CSR in should be narrowed down on regard to stakeholders’ demands under the assumption that stakeholders would represent societal interests and demand that corporations respond to these interests. However, if not handled properly, this narrower focus makes CSR more tangible and ‘practical’ for managers and it may pose new sets of problems.

Drucker categorizes social responsibility in to two significant aspects. One of them being social impacts; these are the activities carried out by a company to the society. An example of this is; Walmatt providing its customers with goods and services. Another aspect of social responsibility is a social problem. This is what business can do for the society. A good example is the business participation in charity work. It could be to help the help the disaster stricken areas or participate in the monthly garbage collection program.