Social Performance: A business does not exist as an island. Instead, it exists in a society, which allows it to exist. It therefore has a duty to give back to the same society. The society is mainly composed of the business’ stakeholders.
These are the people that have an interest in the business and are affected either directly or indirectly by the actions of the business as affirm (Vogel, 2005). The business therefore has a voluntary duty to ensure that the well being of these stakeholders is kept up to the required level.
The voluntary actions that are take by business firms for the good of its stakeholders are know as social responsibility. The stakeholders of the business include customers, suppliers, employees and competitors. Being socially responsible to each
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These are being encourage by the corporation to open up communication with the government in order to have their complaints get authority of attendance to. The government is one of the corporation’s stakeholders too.
The corporation ensures that it abides by its rules and requirements, like price ceilings. The government allows the corporation to exist through funding it, while the corporation executes its policies as required.
Having a coalition with customers will ensure that its purpose for starting up the corporation is achieve. This is however challenge by the large number people in the general public, which the government can create a way of sampling against.
Hancock, J. (2004). Investing in corporate social responsibility: A guide to best practice, business planning & the UK’s leading companies. London: Kogan Page.
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