Type: Process Essays
Sample donated: Randall Obrien
Last updated: September 19, 2019
Thistime was characterized by the active development of globalization processes inthe economy, which were accompanied by the formation of the informationsociety, toughening of competition at all its levels and exacerbation ofproblems in society 1, p. 250. The aggravation of social problems,at least, was caused by the intensification of social and psychologicaltensions in the interaction of business and society as a reaction of people tothe historically developed and up to the present time the business’s focus onsystematic profit-making supported by economic theories and separate laws. Inpractice, this justifies the desire of business to maximize its profits in thestyle of “only business, nothing personal,” which actually means thatthe interests of the organization are above all. At the same time, theprofit of any commercial company is the most important indicator of itseffectiveness, but not the reason for its existence.
Also, the profit forthe firm must be an integral result of its production activity, since itssufficient size is the first of the necessary conditions for its development,preserving the already existing and creating new jobs for hired workers who areprovided with decent wages. At the same time, the profit of any commercialcompany is the most important indicator of its effectiveness, but not thereason for its existence. Also, the profit for the firm must be anintegral result of its production activity, since its sufficient size is thefirst of the necessary conditions for its development, preserving the alreadyexisting and creating new jobs for hired workers who are provided with decentwages. At the same time, the profit of any commercial company is the mostimportant indicator of its effectiveness, but not the reason for its existence. Also,the profit for the firm must be an integral result of its production activity,since its sufficient size is the first of the necessary conditions for itsdevelopment, preserving the already existing and creating new jobs for hiredworkers who are provided with decent wages.Back in the 1950s, the business community in the countries withthe most developed economies began to realize and understand that profit shouldbe perceived not as the goal of the business but as its result, or, in otherwords, as an assessment of the economic performance of the production side ofthe business- activities. Thus, the meaningful focus of the business oncreating a consumer, and not on making a profit, should already be analyzed inits essence as a manifestation of CSR of an external orientation. Alreadyby the end of the 20th century, the market’s attitude towards the productsoffered to it began to be revealed not only by its consumer value and theeffectiveness of the advertising campaign, but also by the social image of itsproducer, which was formed by its attitude towards its stakeholders, nature andthe society as a whole.
The history of business knows many examples, whenthe negative social image of the organization contributed to a significantdecline in sales and even to an actual boycott of all its products. Thus,it became necessary to include CSR in corporate strategy 2, c. 38.Stakeholders are the subjects of the external and internalmarketing environment of the firm, that is, the subjects, including its owners,who promptly influence the decisions made by the firm and are themselvesaffected by these decisions.
In this regard, CSR in business is consideredas a set of its two interrelated directions: internal, which impliesresponsibility to employees for the quality of work and work life, which ismanifested in their satisfaction with the conditions and results of their work,and external, which implies responsibility before society for his contributionto improving the quality of his life by producing products that justify and exceedthe expectations of target consumers from the results of the process of itsproduction and consumption tions, as well as through participation invarious social programs, including charities.At the moment there are a lot of works in the literature devotedto the key provisions of CSR, including its structural analysis. Therecognition of the strategic importance of CSR for all types of organizationsin the 21st century, regardless of their scale and location, is reflected inthe International Standard ISO 26000: 2010 “Guide to SocialResponsibility”. In our country, this standard was approved and putinto effect in 2012.
It is designed to help companies realize theiraspiration for sustainable development in the long term within the sphere ofinfluence of each of them, even if it is recommendatory rather than mandatory. Thisstandard includes proposals to companies not to be limited to compliance withlaws that there is a fundamental duty of any firm and an integral part of itsoverall social responsibility, but also to direct their efforts to ensuremutual understanding and social harmony in relations with all subjects of theeconomy 3, p. 130. The recommendatory nature of this standard meansthat it is not intended to give grounds for legal actions, complaints, defenseor other statements in any litigation, etc. But at the same time it can beeffectively used as a structural component of state domestic policy.
Despitethe wide coverage of the term CSR in the literature in order to increase theeffectiveness of organizations, it is important to consider separately itsimpact on the management of the firm, that is, the impact of social attitudeson the organization of work of hired employees.In terms of its functional purpose, business management consistsof the corresponding social attitudes that influence the formation of socialharmony in its business space, thus exerting an active influence on theformation of a marketing-oriented corporate culture and business ethics in thefirm.