Вы находитесь на странице: 1из 3

1 Brief Introduction This is the process that an organization develops through formulating plans and policies that guides

all of the firms activities and also protects and promotes the international human rights and environmental standards. While it is important for the organization to be involved with its corporate social responsibility, it is also important for the organization to recognize the interests of the stakeholders and to protect their interests. This is significant because the stakeholders of the organization are members of the organization who contribute majorly in determining the kind of outputs the organization generates. Statement of the Research Problem This paper critiques the directors roles in corporate social responsibility in the perspective of a stakeholder. According to Hung (2011), the directors of an organization have two major social responsibilities in the corporation, i.e. to manage the stakeholders interests of the organization and also to increase the participation of the organization for the general benefit of the society it operates in. The role of the directors that is mainly objective to increase the stakeholders participation in the activities that benefit the public has greatly been criticized (Hung, 2011). This is because the main objective of the stakeholders is to maximize their returns. In addition to this, the stakeholders perceive this role as a liability to the organization (Hung, 2011). This is because according to them, the directors use large amount of capital to invest with the society so as create a good brand name for the company and also to increase their number of consumers. Description of the Research Procedure Hung (2011) mentioned that the procedures which the directors utilize in order to enhance the organization to participate in the activities that bring a general good to the public involve developing various plans and procedures for the firm. The role of these strategies involves improving the social network of the internal environment through the firm

2 participating in charitable events of the society. In addition to this, the role of these strategies involves making the firm to participate in the social and professional activities of the public. Similarly, the other procedure the directors use to increase the participation of the firm to the public so as to protect the interests of the stakeholders through defining the social participation role of the organization. This involves revising the rates of their outputs and also improving in the marketing and advertising strategies so as to increase the income generated by the firm. Flaws in Procedural Design The flaw of this design is that, the directors use a lot of resources to fund for the objectives of the organization to participate in the activities of the society (Hung, 2011). This is a flaw to the directors role in the corporate responsibility since it differs from the objectives of the stakeholders who seek to maximize their returns. According to the stakeholders, this role of the directors reduces the value of the company as they invest huge amount of money in the public. Hung (2011) discussed another flaw of the procedures is that the role of the directors mainly focuses on the interaction of the firms business operations with the external environment instead of focusing on the allocation of resources and increasing the wealth value of the organization. Analysis of Data The analysis of the data suggests that the role of directors to establish interactions between the firms business operations and its external environment has a positive impact in meeting the interests of the stakeholders. In addition to this, the interaction of the firm and its external environment also has a positive impact to the perception of the public in relation to the firm. This is because the members of the public perceive the firm to be loyal to its consumers through following the legal process involved in the operations of the business and also the other aspects of the firms external environment.

3 Limited and Justifiable Conclusions Although the directors roles seem to be a liability to the stakeholders in the short run, Hung (2011) concluded that it is important for the directors to take advantage of the development of roles in the economic environment of the business operations so as to protect the interests of the stakeholders and also continue to improve the returns of the organization. Reference: Hung, H. (2011). Directors roles in corporate social responsibility: a stakeholder perspective. Journal of Business Ethics, 103(3), 385-402. doi: 10.1007/s10551-011-0870-5

Вам также может понравиться