Business Philosophy

For the current business practices to have a beneficial effect on a company, they must be carefully planned out and put into action. Businesses must incorporate socially responsible practices if they want to succeed and perform well in the marketplace. Success and competitiveness come from the strategic blending of techniques that are more interested in and involved with the stakeholders. The moral replacements that CSR initiatives make possible can be used to make up for irresponsible business practices (http://www.businessnewsdaily.com/4528-social-responsibility-not-optional.html). When examining the connection between corporate social responsibility practices and competitive performance in this scenario, the stakeholder perspective is crucial.

Firms are encouraged to participate and integrate the CSR practices in their firms which facilitate the quick growth and development. The stakeholders’ theory is the underlying concept suggesting that the adoption of the CSR practices results in better performance in a given business (Ciulla, Martin and Solomon 263). Effective management of the relationship with the stakeholders is identified to be an influencing factor to the success of a firm. Value should be created for the shareholders, customers or the employees who enhances competitiveness and effective management resulting in profits and growth in a company (Ciulla, Martin and Solomon 264) According to the stakeholder’s perspective, a close relationship with the internal and external stakeholders is essential as it helps the manager of the business corporation in expressing their values. Considering the benefits of the CSR practices, the firms are better positioned to adopt the program since it enhances maintenance of the flexible and close relationships among the stakeholders.

The corporation social responsibility practices should be incorporated into the business plans with the objective of developing strategies that would be approved by the stakeholders. The competitive success of the CSR practices would be measured using dimensions such as customer satisfaction, quality and innovation, market share, reputation and employee satisfaction. Effective communications with the stakeholders with the aim of ensuring behaviors that are socially responsible enhance the development of specific intangible assets in a given corporation (Ciulla, Martin and Solomon 267). The proactive CSR activities are also associated with the knowledge and desire to achieve shared goals and vision and development of the proactive strategies in a firm (Caroll 91) Positive enterprise perceptions are some of the benefits from the stakeholders which are only received through the implementation of the CSR efforts. In this case, the positive reciprocity between the stakeholders and the firm should be maintained as proposed by stakeholder’s theoretical approach.

The real value generated by a given corporation by the CSR practices is through shared value among the members and the stakeholders. Such value in the firm emerges with the aim of innovating and redefining markets or products. Also, the value provided through the CSR activities results to value chain improvements whereas the generation of the value is made possible through the interaction between the stakeholders and the company. In this case, the development of the corporation social responsibility practices provides a platform for the socially responsible behaviors and making strategic decisions about a company which also address the issue of uncertainties and inefficiencies during the management process (Cheng, Ioannis and George 19). According to the objectives attained, priority management of clients and workers has been identified to contribute to the achievement of the success greatly. Considering the stakeholders’ perspective, CSR is often more managerial and practical in scope. However, while considering the interests of the stakeholders, it’s related to the sustainability concept and the society-centered issues in a company which is critical success drivers. In a nutshell, the incorporation of the CSR practices enhances economic and sustainable competitiveness in a business corporation.

Works Cited

Carroll, Archie B. “Corporate social responsibility.” Organizational Dynamics 44.2 (2015): 87-96.

Cheng, Beiting, Ioannis Ioannou, and George Serafeim. “Corporate social responsibility and access to finance.” Strategic Management Journal 35.1 (2014): 1-23.

Ciulla, Joanne B., Martin, Clancy W., and Solomon Robert C. Honest work: A business ethics reader. New York: Oxford University Press, 2011.