Logo

Navigation
  • Home
  • Services
    • ERP Solutions
    • Implementation Solutions
    • Support and Maintenance Solutions
    • Custom Solutions
    • Upgrade Solutions
    • Training and Mentoring
    • Web Solutions
    • Production Support
    • Architecture Designing
    • Independent Validation and Testing Services
    • Infrastructure Management
  • Expertise
    • Microsoft Development Expertise
    • Mobile Development
    • SQL Server Database and BI
    • SAP BI, SAP Hana, SAP BO
    • Oracle and BI
    • Oracle RAC
  • Technical Training
    • Learn Data Management
      • Business Intelligence
      • Data Mining
      • Data Modeling
      • Data Warehousing
      • Disaster Recovery
    • Learn Concepts
      • Application Development
      • Client Server
      • Cloud Computing Tutorials
      • Cluster Computing
      • CRM Tutorial
      • EDI Tutorials
      • ERP Tutorials
      • NLP
      • OOPS
      • Concepts
      • SOA Tutorial
      • Supply Chain
      • Technology Trends
      • UML
      • Virtualization
      • Web 2.0
    • Learn Java
      • JavaScript Tutorial
      • JSP Tutorials
      • J2EE
    • Learn Microsoft
      • MSAS
      • ASP.NET
      • ASP.NET 2.0
      • C Sharp
      • MS Project Training
      • Silverlight
      • SQL Server 2005
      • VB.NET 2005
    • Learn Networking
      • Networking
      • Wireless
    • Learn Oracle
      • Oracle 10g
      • PL/SQL
      • Oracle 11g Tutorials
      • Oracle 9i
      • Oracle Apps
    • Learn Programming
      • Ajax Tutorial
      • C Language
      • C++ Tutorials
      • CSS Tutorial
      • CSS3 Tutorial
      • JavaScript Tutorial
      • jQuery Tutorial
      • MainFrame
      • PHP Tutorial
      • VBScript Tutorial
      • XML Tutorial
    • Learn Software Testing
      • Software Testing Types
      • SQA
      • Testing
  • Career Training
    • Career Improvement
      • Career Articles
      • Certification Articles
      • Conflict Management
      • Core Skills
      • Decision Making
      • Entrepreneurship
      • Goal Setting
      • Life Skills
      • Performance Development
      • Personal Excellence
      • Personality Development
      • Problem Solving
      • Relationship Management
      • Self Confidence
      • Self Supervision
      • Social Networking
      • Strategic Planning
      • Time Management
    • Education Help
      • Career Tracks
      • Essay Writing
      • Internship Tips
      • Online Education
      • Scholarships
      • Student Loans
    • Managerial Skills
      • Business Communication
      • Business Networking
      • Facilitator Skills
      • Managing Change
      • Marketing Management
      • Meeting Management
      • Process Management
      • Project Management
      • Project Management Life Cycle
      • Project Management Process
      • Project Risk Management
      • Relationship Management
      • Task Management
      • Team Building
      • Virtual Team Management
    • Essential Life Skills
      • Anger Management
      • Anxiety Management
      • Attitude Development
      • Coaching and Mentoring
      • Emotional Intelligence
      • Stress Management
      • Positive Thinking
    • Communication Skills
      • Conversation Skills
      • Cross Culture Competence
      • English Vocabulary
      • Listening Skills
      • Public Speaking Skills
      • Questioning Skills
    • Soft Skills
      • Assertive Skills
      • Influence Skills
      • Leadership Skills
      • Memory Skills
      • People Skills
      • Presentation Skills
    • Finding a Job
      • Etiquette Tips
      • Group Discussions
      • HR Interviews
      • Interview Notes
      • Job Search Tips
      • Resume Tips
      • Sample Resumes
 

Corporate Social Responsibility towards Stake Holders

By Exforsys | on December 4, 2015 |
Corporate Social Responsibility

We often hear the old belief that when it comes to dealing with business, we must be strictly business-like and no other things should get in the way. This means that profitability is the governing language in business. Although true, this perspective is no longer entirely applicable to all businesses because corporations have come to embrace the very essence of corporate social responsibility (CSR).

Companies have learned to perform business in the interests of the larger community and in an ethical manner. Furthermore, observing corporate social responsibility also means being able to balance the interests of the shareholders and investors with that of the community.

Corporate social responsibility is not just a company’s obligation and accountability to one aspect or a single group but the scope is all-encompassing. It is not only held accountable to the shareholders but on all the stakeholders that either have a direct or indirect encounter with the organization.

When we speak of stakeholders, the term means every group of individuals that a company deals with in business. Basically, internal and external stakeholders are the two major types of stakeholders that will be discussed further in this article.

Internal Stakeholders

From the term itself, internal stakeholders are those groups of individuals who are coming from within the organization. So these are the shareholders or investors, employees, and the company management.

The shareholders are the investors in the business. They are the members of the company who put in money or capital for the business to run. A firm practices CSR towards shareholders by conducting business effectively to give back the share of investor, disclosing pertinent information to the shareholders and respecting their opinions, requests, and concerns. Also, the company is responsible for protecting and increasing the shareholder’s assets.

The employees help drive success in an organization. So the company must provide them with fair and proper compensation, good working conditions, open and honest communication, and equal treatment to every employee.

The management performs most of the decision-making in the company and just like the employees, the firm must also render high regard to these people. Reciprocally, the management is also responsible for protecting the welfare of the company.

External Stakeholders

The external stakeholders include the consumers or customers, suppliers, creditors, competitors, and local community.

Companies must cater to the needs of the customers for their satisfaction. They should purchase products of good quality to improve their standard of living. As with the suppliers, firms must create a good relationship with them especially that they can help in reducing the cost of company expenses.

Creditors must be responsible in making payments to suppliers on time based on the agreed terms and conditions. This is living up to the value of corporate social responsibility towards the people who are involved and are part of the process.

CSR extends its practice even among competitions in the business. If competitors are ethical in running the business, the organizations must know how to respect each other’s tangible and intellectual property rights. Also, competitors must avoid getting commercial information through unethical means.

The local community or the society at large is also involved in the business activities since they allow the corporations to conduct business and put up establishments in their vicinity. In return, companies must keep a responsible demeanor towards the people in the community such as respecting human rights and engaging in community programs or participating in corporate volunteering activities.

Major Stakeholder Expectations

What does each stakeholder expect from a company? There could be primary or secondary expectations for these major stakeholders. Starting with the shareholders, primarily they expect a return of investment through share. Secondary expectation would be added value to their asset. For the employees, their main concern is adequate compensation before work satisfaction. The customers are concerned more of the supply of goods and services more than product quality.

As for the creditors, credit worthiness is the primary thing and next to that is security. Prompt payment is what suppliers expect first and then long-term relationship. The government expects compliance to laws and policies and next in rank is improved competitiveness. Lastly, the community would need more of the safety and security in their areas. Then, they would expect contributions that would benefit them.

« « Corporate Social Responsibility towards Society
Corporate Social Responsibility towards Suppliers and Creditors » »

Author Description

Avatar

Editorial Team at Exforsys is a team of IT Consulting and Training team led by Chandra Vennapoosa.

Free Training

RSSSubscribe 392 Followers
  • Popular
  • Recent
  • Corporate Ethics and Ethical Issues

    November 14, 2015 - 0 Comment
  • Corporate Social Responsibility Myths

    November 24, 2015 - 0 Comment
  • Corporate Social Responsibility and Human Rights

    December 17, 2015 - 0 Comment
  • Corporate Social Responsibility Strategies

    November 23, 2015 - 0 Comment
  • Corporate Social Responsibility towards Suppliers and Creditors

    December 7, 2015 - 0 Comment
  • Corporate Social Responsibility towards Customers

    November 27, 2015 - 0 Comment
  • Corporate Social Responsibility Career Opportunities

    December 15, 2015 - 0 Comment
  • Corporate Social Performance

    November 16, 2015 - 0 Comment
  • Corporate Social Responsibility towards Government

    December 1, 2015 - 0 Comment
  • Corporate Volunteering

    November 21, 2015 - 0 Comment
  • Corporate Social Responsibility and Human Rights

    December 17, 2015 - 0 Comment
  • Corporate Social Responsibility Career Opportunities

    December 15, 2015 - 0 Comment
  • Corporate Social Responsibility towards Suppliers and Creditors

    December 7, 2015 - 0 Comment
  • Corporate Social Responsibility towards Society

    December 3, 2015 - 0 Comment
  • Corporate Social Responsibility towards Government

    December 1, 2015 - 0 Comment
  • Corporate Social Responsibility towards Employees

    November 30, 2015 - 0 Comment
  • Corporate Social Responsibility towards Customers

    November 27, 2015 - 0 Comment
  • Corporate Social Responsibility Myths

    November 24, 2015 - 0 Comment
  • Corporate Social Responsibility Strategies

    November 23, 2015 - 0 Comment
  • Corporate Volunteering

    November 21, 2015 - 0 Comment

Exforsys e-Newsletter

ebook
 

Related Articles

  • Corporate Social Responsibility and Human Rights
  • Corporate Social Responsibility Career Opportunities
  • Corporate Social Responsibility towards Suppliers and Creditors
  • Corporate Social Responsibility towards Society
  • Corporate Social Responsibility towards Government

Latest Articles

  • Project Management Techniques
  • Product Development Best Practices
  • Importance of Quality Data Management
  • How to Maximize Quality Assurance
  • Utilizing Effective Quality Assurance Strategies
  • Sitemap
  • Privacy Policy
  • DMCA
  • Trademark Information
  • Contact Us
© 2023. All Rights Reserved.IT Training and Consulting
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.AcceptReject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT