CRS, Essay Example

According to the World Business Council for Sustainable Development (WBCSD), CSR is a business’ commitment contributing to sustainable economic development through working with the local community, society, families, and employees in order to improve their life in terms of quality. As a result, the point driven is of sustainable development by looking at CSR’s fundamental pillars encompassed in both economic growth and quality of life.

The moral, rational, and economic arguments of WBCSD in relation to CSR is of great importance because it looks into the lives of people in a wider setting. The leading-edge reports concerning Vision 2050 maps out the transformative changes of how the world produces and consumes the lot from agricultural products to energy. The unprecedented business opportunities of Vision 2050 are ethical because they look into improving and managing livelihoods, lifestyles, bio capacity and ecosystems. The Vision also looks into developing and maintaining zero-waste cities and low-carbon. The ethical aspect of the Vision is evident because it applies to challenges that affect the human population and aims at mitigating prevalent issues. The centrality of the project is able to measure the compatibility of CSR with a mission of core goals, whereas specificity of the project gauges advantages to the corporation by CSR. In addition, pro-activity is measured by looking at the degree of reaction to external demands. Other ethical issues raised include voluntarism and visibility that affects measures of discretion and community as stakeholders of the project. Consequently, trust and integrity are morals upheld, which benefits stakeholders through meeting their needs and thus, they become highly satisfied. As a result, the moral lexicons of CSR experts encompass environmentalism, participation, human rights, accountability, empowerment, good governance, and human rights.

Conversely, their rational to CSR is achievable and sensible because it balances all aspects (economics, sustainability, and development challenges) of human survival in a developing and transforming the world. According to report, the rational of CSR is a strategy that is practical because it copes with externalities and is an advantage to the firm since profits will be realized. Businesses have a moral imperative of doing the right thing without regard to the effects of such decisions to performance of the firm. In addition, a competitive advantage can be achieved by the firm through tying activities of CSR to those of primary stakeholders. By investing in the management of stakeholders is a complementary act to the shareholders creation of value and provides a basis for competitive advantage. This is because the important capabilities and resources created distinguish competitors and the firm. Moreover, the rational depicted from the report will encourage diversity, and this brings about improvement of life for primary stakeholders.

The economic arguments presented in the report for CSR is that of self-interest with the aim of persuading business managers to pursue a CSR strategy. Under this, the proponents represent a holistic approach that infuses all operational aspects. Their believe is that, all actions taken today by corporations in incorporating CSR all through the organization are a representation of a real point of competitive advantage to the market and differentiation where future success hinges. The pertinent issues raised under economic arguments include corporate governance, diversity, patriotism, corporate governance, and fair trade. In the U.S. after the September 11, 2001 attack by terrorists, the state is particularly vigil on operations with regard to patriotism. Many companies today are trying to avoid paying corporation taxes and other incorporate off-shore. Transparency encourages trust, maintaining confidence and thus, corporate governance comes in to ensure accurate financial statements are provided, executive compensation are in place among other sensitive issues. Therefore, the economic aspects have been fully addressed in the report and the Vision 2050 is going to succeed.

In the report, it is evident that CSR is continuing to be a source of competitive advantage with the influence of opportunities, skills, stakeholders, resources, corporation merits, and industry structure. CSR is an irreversible and strong part of corporate actions that create significant benefits like high levels of reputation and returns, motivation and employee loyalty. Companies with a responsible competitive advantage experience a short-term strategy of pain alleviation; they establish risk policies of management and plan strategically, and incorporate into their strategy social responsibility. Companies that have strategies that add value and create benefits to the company achieve a competitive advantage. Therefore, the vast business opportunities in the report give reference to these points because they want to gain competitive advantage. Furthermore, they are a differentiating source of competitive advantage since they aim at executing innovative social projects and ethical business management. In order for WBCSD to be a source of competitive advantage, the CSR actions implemented need to have consistent results and be real for the society to appreciate. Therefore, the benefits associated with the project need to be implicit towards social strategies philosophy. The project is rooted with CSR thus, will meet the expectations of new market that includes human rights, corruption and environmental management in the chain of supply among others.