Social Responsibility in Business Organizations: Exploring the Investment Dimension

Abstract

The Business’ management has preeminent responsibility to owners and stakeholders. This responsibility is to carry out business in such a way that is compliant with their objectives and desires; i.e. making profit without neglecting the basic legal and ethical rules of society. Some perspectives could therefore argue that corporate social responsibility (CSR) involves an extra cost that will affect a business’s profit, and is therefore in contravention of the basic maxim. Nowadays, more corporations are realizing that undertaking social responsibility is more than just an option: It is a sort of commitment towards the society and environment where the organization generates its profit. This study examines different viewpoints and arguments concerning CSR. The aim of this study is twofold. First, it contributes to understanding different perspectives of CSR by reviewing related literature, and second, the investment dimension of CSR is highlighted through exploring benefits that may accrue to organizations when they engage in initiatives of CSR. This paper particularly serves to highlight the potential benefits and returns that a business may achieve from meeting its social responsibility, thus insisting that CSR is an investment, which involves opportunities, rather than a cost.

Keywords: Business Organizations and Corporations, Corporate Social Responsibility (CSR), Society.