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Corporate social responsibility and its impact on financial performance
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In the past, the main goal of business organizations was to make money. Now, business is seen as a social institution that is an important part of the social system. People are changing the way they used to think about business. It's not enough to hire people, make money, and pay taxes anymore. Companies are now expected to do the right thing, be responsible, and help society as a whole (Brown, 2001). Business is only possible because of society, and society is only possible because of business (Davis and Frederick, 1985). So, there is a two-way link between business and society. Cannon (1994)...
In the past, the main goal of business organizations was to make money. Now, business is seen as a social institution that is an important part of the social system. People are changing the way they used to think about business. It's not enough to hire people, make money, and pay taxes anymore. Companies are now expected to do the right thing, be responsible, and help society as a whole (Brown, 2001). Business is only possible because of society, and society is only possible because of business (Davis and Frederick, 1985). So, there is a two-way link between business and society. Cannon (1994) says that a business should make money, supply a market, create jobs, come up with new ideas, and make enough extra money to keep doing what it does and get better at it while also helping to keep the community it works in together. Society is expected to make a place where businesses can grow and thrive, allowing investors to make money and making sure that those who have a stake in the business can enjoy the benefits of their involvement without worrying about being treated unfairly. Organizations are part of society, and what they make is also accepted by society. They have responsibilities to the rest of society as citizens. Business can also be seen as a steward of society's resources, such as people, raw materials, services, and infrastructure. Businesses need help from society to turn raw materials into goods that can make money, and society also buys the goods that businesses make.
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