Exam Paper Guidelines

Question 2

Corporate social responsibility is the process aimed at embracing responsibility for the firm’s actions and supporting the positive impacts using its activities in the community, consumers, and environment. The argument against corporate social responsibility is that companies should create or provide services instead of handling welfare activity. In this argument, the companies do not have the knowledge or expertise necessary in handling the social problems. There is also the claim that being socially responsible tend to damage the company in the global marketplace. The arguments supporting CSR is that it can have a positive impact on the company through improving employee retention and recruitment and also managing environmental risks (Keinert, 2008). Another support is that it provides the company financial return and social and environmental benefits for the society. A legitimate operation is a business that is observing the rules and regulations set by the government. A business that lost its legitimacy is one that operates activities that are considered illegal and against the laws set. So as to regain legitimacy, the organization should ensure that it observes the law and conduct legal operations.

Question 3

I agree with Chouinard that profit is what happens when you do everything right. When doing business, it is important to put your principles ahead of profit so as to reap the best rewards. Most business people normally focus on profits, and they wind up in the hole. The reason people fail is because when they emphasize on profit, they end up creating a culture that underemphasizes on customers. When the company stops focusing solely on profits and consider serving customers as its higher purpose, they will be able to reap the best rewards. Holding customers in the high reward constitutes doing the right thing, and this will result to reaping huge profits. Profits are good as a company cannot serve its customers without a healthy bottom line. However, when the company makes profits the sole purpose, it is only a matter of time before the customers figure that out and they will start leaving (Keinert, 2008). When the company focuses on profits alone, it will not be able to create value for customers; however, focusing on value creation will result in huge profitability for the company.

Question 5

Business tends to have an obligation of protecting and enhancing the society. Organizations should make sure that their activities do not have a negative impact on the society. Corporate social responsibility is important; however, an overemphasis on social responsibility can have a negative impact on the business operations. Focusing too much on social responsibility will cause the organization not to consider its relationship with the other stakeholders (Keinert, 2008). In this way, the organization may start neglecting its objective and divert completely from its main goal. Thus, the organization may end up conducting activities that do not add value to its clients, and the company will not manage to make profits. Without profits, it will not be able to continue with its social responsibility. When the company loses focus on its goal, it will mean that the stakeholders are the one who will pay for the cost. It is important for the business to protect the society; however, when there is an overemphasis on this area, it will mean that the business is neglecting some other parts resulting in failure of the business.

Reference

Keinert, C (2008). Corporate social responsibility Springer Publishing

Sherry Roberts is the author of this paper. A senior editor at Melda Research in

"Janet Peter is the Managing Director of a globally competitive essay writing company.