Corporate social responsibility is one of the hottest issues in corporate boardrooms these days, partly because it is becoming increasingly important to employees and other stakeholders. In your opinion, why have stakeholders given CSR more attention recently? Does abiding by CSR standards potentially cause companies to have conflicting objectives with some stakeholders in some situations?

These questions are open to speculation and debate. The arguments should be founded on the understanding of the stakeholder perspective which define stakeholders as any entity who affects or is affected by the organization’s objectives and actions e.g. employees, shareholders, suppliers, unions, government, etc. Hence, the answer can be constructed by providing valid needs as perceived by different stakeholders.

Many will suggest that CSR has become more important because of global warming, loss of habitat, and other highly visible indicators of problems. In addition, a few might argue that increasing wealth allows society to raise the bar on companies by demanding that they contribute more to society. Still others might suggest that globalization has brought developed world companies closer to people in poverty and countries in need of better health standards.

Students may state that corporate scandals have raised CSR as a priority. Other reasons include the preference of
stakeholders wanting to be associated with organizations that are deemed socially responsible. This preference has not gone unnoticed in corporate boardrooms. A growing number of companies are equating social responsibility with increased profitability. As a result, they are changing the way they do business. They reason that CSR can be leveraged as a competitive advantage in the market.

Regarding the conflicting objectives, many students would agree. After all, the textbook states that companies can’t satisfy all stakeholders because there are limited resources and stakeholders have conflicting goals. But some corporate leaders have suggested that there is less conflict than assumed. They particularly believe that satisfying communities and the environment ultimately satisfies the needs of shareholders and employees, as more and more people are realizing the importance of sustainable relationship between organization and its environment.