BM061-3.5-2-BEGTenzin ChentseTable of ContentsIntroduction.2Ethical dilemma.3Question 1.3Question 2.4Question 3.4Question 4.4Question 5.4Question 6.5Conclusion5References6

Introduction.Corporate social responsibility is a management concept in which companies are concerned about the environment and social responsibilities. Corporate social responsibility is generally understood as a way for the company to give back to its society. This article originates from an American magazine entitled "Business Week Viewpoint". It was composed by Leo Hindery Jr. and Curt Weeden and was distributed on 8 July 2008. It handles the issue of "Corporate Social Irresponsibility".

Leo Hindrey Jr. and Curt Weeden highlights in this article the need for companies to set a minimum budget for partaking in corporate philanthropy, companies should allocate a minimum of one perfect of their profits for this. He indicates that companies that are dealing with a decent present corporate income should allocate more than one percent of their profits. They explain clearly discriminatingly (by the Giving USA Foundation and the Indiana University Centre on Philanthropy) how 25 years prior to this era companies were contributing 2 percent of their profits for humanitarian purposes while these days they even don't surpass 0.7 percent. They also state that although there are economic benefits for the company and its members they shouldnt engage in philanthropic activities if their intentions are so. Corporate giving can be handled straightforwardly by the company or through a sub division in the organisation that is focused in the cause. The most well-known asset that a company can donate is money, In some cases, companies allow the utilization of their corporate offices; property, (for example, used computers, structures or area); gifts of items, advertising support; loans ; official credits; and numerous companies have worker volunteer gatherings that give their time and help the non-government. Companies provide for a wide range of donations of not-for-profit associations, which includes education, human services, health services, betterment of the environment and numerous others. Corporate philanthropy is performed without expecting anything in return. Negligence of corporate philanthropy is considered as a irresponsibility as stated by Leo Hindery Jr. and Curt Weeden, negligence is considered as irresponsibility because partaking in corporate social responsibility activities is a responsibility which should be done by all companies.

Ethical dilemma.

An ethical dilemma is a state of mind in which the person or company has a moral obligation to make a decision in which there is only one choice to make but two options to choose from. The ethical dilemma in the case study is described clearly when the author states that the corporations are confused whether to keep all the money to maximize profits or contribute it to the society.

Question 1.An increasing number of companies invest in inflating their corporate citizenship to build general good will for their organisations. Companies choose to inflate their image by partaking in corporate social responsibility mainly to enhance their public relations. In the business world, reputation means a lot. Theres a need to be seen as a good corporate citizen and hence customers feel better about themselves when they know that their money is going to a company that cares. In this modern era companies should be extremely focused on keeping their customers happy since it is easy for them to talk bad about the company through simple social networks. Even if negative comments about the company Inflating their corporate citizenship is also a good way to attract and retain talented employees. Employees choose to work for a company who is socially responsible rather than a company that ignores this responsibility. Having talented employees increase the overall productivity. Companies that care recognize that they need to care first in order for their employees to care.

Another reason why companies inflate their image is for advertising purposes. For example if a company donates to a benefit concert for breast cancer, the companys name will be mentioned in the concert and itll be well known. Its advertising in a good way.However there are a few companies that participate in inflating their corporate social responsibility due to ethical reasons. Some companies believe that it is their obligation to partake in such activities as a way of giving back to the community.Inflating their corporate citizenship is a great way for a business to give back to its community and it is also beneficial for the company.Question 2.It is definitely ethical for a company to donate its profits to a non-profit organisation aligned with the business, it makes sense for a business to invest in causes that are related to their company because they share similar beliefs. There is no point in donating to a cause in which the company is not believing in. If the company donates to a cause thats closely related to them, they are not only supporting that cause to build reputation but also enhancing their beliefs. There are a lot of organisations that claim to be non-profit organisations but some of them are deceitful. If they invest in an organisation that shares the same beliefs they can be sure that its being used for a good cause.

Question 3.It depends on what the pet project is about, but it is morally wrong if a company does fund something that is not related to the betterment of others. The whole definition of donation revolves around the fact that its meant to be given to charity. Collecting donations and supporting the pet projects of the seniors is just the worst thing it can be used for. Its a project by the senior as a way to keep himself entertained, its to be funded by the senior himself as only he benefits from it.However if the seniors pet project is focused around giving back to the community then it is ethically correct. Itll be used for a good cause and hence will stick to the meaning of donation.

Question 4.The basic goal of a company is to make profit. They try to make more money each year than they did the previous year. If a company allocates a certain percentage of profits for charity it benefits them and the cause theyre supporting. If the company faces a bad year with low profit and if theres this fixed amount to be paid and if the company cant afford to pay itll affect the companys state negatively. If a company has had a good financial year and if the profits are high then the charity will get more donations since its a percentage of the profits.

Question 5.The authors talk about getting strong returns, these returns referred to be generally public relations and the public image it receives when it partakes in corporate social responsibility. Upon donating every year the consumers become aware of the good deeds that the company is doing through various means such as advertisements. This enhances the corporate image of the company. Participating in philanthropy can bring new people to the business. There could be people out there who are aware of the cause that the company is supporting but not necessarily aware of the company. These new customers become loyal to the company because the company is supporting a cause that they believe in. This effect creates good public relations and the image of the company becomes reputable. Its inherent for human beings to support what they think is right. If the company supports a cause which impacts a lot of people, the returns are going to be tremendous.

Benefits of participating in corporate social responsibility is not only economical but also psychological, the company as a whole feels good about what it is doing. The members of the company are morally empowered.

Question 6.No, it does not. Its the thought that counts. They are losing profits that they could keep for themselves but no one knows what the true intention of the company really is. True social responsibility cannot be pursued unless everyone on the inside is involved and actually care about the cause. They might be donating more to have higher returns in the form of publicity. The economic benefits of participating in corporate social responsibility is massive and very tempting, therefore it has become a tool for companies to maximize their profits. Just because a company cant afford to donate more than 1% doesnt mean its a bad company. Companies who really care about the acts that the non-government organisations do are usually small in most cases and they dont donate a huge sum but their thought is true. According to a survey conducted by American Express 80 percent of businesses that earned less than a million gave a share of profits to non-profit groups. Just a percent of their profits isnt much but they donate willingly.

Conclusion

After reading this case and grasping the concept of it I have learnt that corporations no matter how big their size should participate in corporate social responsibility activities. I have also learned that most of these companies approach their social good efforts with selfish intentions. The benefits for the company is massive however it should not be used as a mere tool, the whole definition of corporate social responsibility is based upon the fact that people care about this world. If companies use it just to market themselves then its not corporate social responsibility, its advertising. Also while doing research for this case I have learnt that there are actually people who prioritize doing good rather than maximizing profits.

RecommendationCorporate social responsibility is an integral part of our community and must be implemented by all companies, big or small. The benefits of participating in events focused on corporate social responsibility is massive both for the company as well as the community. Therefore to reverse the downward trend in corporate giving, we need to have self-motivated and ReferencesLeo Hindery Jr. andCurt Weeden (2008) Corporate Social Irresponsibility, Available at: http://www.businessweek.com/stories/2008-07-09/corporate-social-irresponsibilitybusinessweek-business-news-stock-market-and-financial-advice (Accessed: 10 July 2014).\

America now News (2012) How much of your donations really go to charity?, Available at: http://www.americanownews.com/story/19707005/how-much-of-your-donations-really-go-to-charity (Accessed: 11 July 2014).

Andreas B. Eisingerich and Gunjan Bhardwaj (2011) Does Social Responsibility Help Protect a Companys Reputation?, Available at: http://sloanreview.mit.edu/article/does-social-responsibility-help-protect-a-companys-reputation/ (Accessed: 13 July 2014).

Cengage (2010) Managerial Ethics and Corporate Social Responsibilit, Available at: http://www.cengage.com/resource_uploads/static_resources/0324405715/8910/0-324-40571-5_04_REV.pdf (Accessed: 16 July 2014).

Charted Institute of Managment Accountants (2013) ETHICAL DILEMMAS: What would you do?, Available at: http://www.cimaglobal.com/Documents/Professional%20ethics%20docs/dilemmas%20FINAL.pdf (Accessed: 11 July 2014).

Dave Nielsen (2010) Corporate Social Responsibility (CSR) and Project Management, Available at: http://www.projectsmart.co.uk/corporate-social-responsibility-and-project-management.php (Accessed: 15 July 2014).

Double the Donation (2014) Companies that Donate to Nonprofit Organizations, Available at: https://doublethedonation.com/blog/2013/09/companies-that-donate-to-non-profit-organizations/ (Accessed: 13 July 2014).

Duangkaew Chaisurivirat (2009) The effect of corporate social responsibility: Exploring the relationship among CSR, attitude toward the brand, purchase intention, and persuasion knowledge, Available at: http://scholarcommons.usf.edu/cgi/viewcontent.cgi?article=2893&context=etd (Accessed: 17 July 2014).

Materiel Management Divisi (2011) Donations To Non-Profit Organizations, Available at: http://bargainbarn.ucdavis.edu/howto/nonprofitorgs.cfm (Accessed: 12 July 2014).

McKinsey & Company (2014) Making the most of corporate social responsibility, Available at: http://www.mckinsey.com/insights/corporate_social_responsibility/making_the_most_of_corporate_social_responsibility (Accessed: 11 July 2014).

Sam Peters (2012) The Benefits of a Company Making Charitable Donations , Available at: http://www.business2community.com/finance/the-benefits-of-a-company-making-charitable-donations-0338130#!bhhqPi (Accessed: 12 July 2014).

United Nations Industrial Development Organization (2014) What is CSR?, Available at: http://www.unido.org/en/what-we-do/trade/csr/what-is-csr.html (Accessed: 10 July 2014).

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