The Stakeholder Route to Business and Social Value, Essay Example

The CSR of choice could be shareholder value maximization through making sufficient money for the benefit of the shareholder and improving the welfare of the general society. The premise behind the existence of an organization is creation of returns to the investors in the firm. The achievement of this goal is based on responsible behavior and a fair deal with the customers and the suppliers in the organization. The wider responsibility to the general society can also not be underestimated because the organization must strive to enhance the societal welfare. When the organization is of benefit to the society, shareholder value is also improved. It is prudent for a business to embrace some CSR strategy measures that are of benefit to the society while at the same time maximizing shareholder value. An organization can create positions of job to benefit the society, donate to charities and support non-governmental organizations. The stakeholders in this regard must be allowed to contribute to crucial strategic decisions so that the goals are realized (Bhattacharya, Sen & Korschun, 2011).

Corporate social responsibility plays a crucial role in positioning the business in the existing environment. Competitive forces such as the five forces of Michael Porter play a crucial role in shaping the CRS strategy in the organization. They contribute in describing the strategic positioning of the organization and the ethical reputation inherent in the business which in turn explains the perception of the society to the organization and the willingness of the organization to interact with the community. The most important consideration in corporate social responsibility is that it should not be executed on the basis of the views of an individual but should be a reflection of the values as well as beliefs of the owners and the shareholders.

Reference

Bhattacharya, C.B., Sen, S. & Korschun, D., (2011). Leveraging Corporate Social Responsibility: The Stakeholder Route to Business and Social Value. UK: Cambridge University Press.