Social Responsibility of Corporate

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Global corporate responsibility relates to the integration of environmental and social concerns into the company's goals. Companies enable the local societies to solve challenges outside their business operations. Social responsibility strengthens business-to-society ties and is a way to return the economy to profitable investment. High revenues are generated by multinationals. The income is paid to the different shareholders who determine how the company spends the income. Multinational organizations do not have the moral responsibility of conducting corporate social responsibility because the companies do not owe the societies. Corporate social responsibility in business in not a moral obligation because the firm owes the shareholders but not the society in utilization of received revenue.

Multinational companies invest in business for profitability. The companies generate high financial returns due to capitalization of the international markets. The business has a duty towards making the shareholders profit from the investments. Therefore, the shareholders are the primary concern of the firm. The community in the surrounding region may have many problems which the company can solve. However, it is the duty of the shareholders to get returns and decide what to do with the finances. It is not compulsory for the business to undertake any activities aimed at helping the surrounding communities socially or environmentally. If the shareholders decide to conduct social responsibilities, it is of their generous spirit but not due to societal obligation. The only obligation of multinational companies is to engage in activities that improve performance in the business as a duty to shareholders,

Corporate social responsibilities require financial resources to undertake. Any business must operate within the possible budget allocation to avoid bankruptcy. The moral obligation of such companies is to prevent investing in activities that pollute the environment. In such cases, it is the role of the business to rectify the situation and restore the primary state of the environment. Businesses have a responsibility towards observation of the law. Firms that defy laws of the country risk exposure to lawsuits which taint the image of the company. The moral obligation of the firm is to uphold all laws and avoid risking the lives of the people in the region. However, the business does not have to conduct corporate social responsibilities because the company does not have any binding role to the society (Adi, Grigore & Crowther, 2015, p. 227).

Corporate social responsibility helps in exposing the company to potential investors. Investment in corporate social responsibility gives the company and opportunity to use the event in marketing the business. Such events contribute towards the primary objective of the firm in the realization of higher profits. The management of multinational organizations has the primary role of engaging in events that market the business to improve performance. The obligation of the management is strictly to promote the business and meet the goals of the firm. Many companies set objectives of the company in business growth and high profitability in the firm. The goals do not necessitate the business in any events that do not have a direct benefit to the company. The obligation of the company is in using ethical practices but not ethical obligation towards any charity events especially without potential benefit to the business.

Financing corporate social responsibilities make the company incur the financial expense (Idowu & Vertigans, 2017, p. 140). At times, the financial expense might require the companies to raise the cost of products to raise enough capital for the charity. Increasing the price of goods may not be favorable to the customers who are a critical part of the organization. Without the customers, it is impossible for the business to run. Sales made to the customers equip the business with enough funds t keep the business running. Terming corporate social responsibility as a moral obligation means that the multinational companies owe the population assistance in societal issues within the community. That is not true. Any business has the freedom to perform corporate social responsibilities but as a sign of goodwill but not as an obligation. Despite the amount or revenue generated by the firm, the shareholders retain the authority to decide how to use the income.

Social responsibilities are tasks that improve the relationship of the business with the society. The company invests in assisting the community in overcoming challenges presented by poverty due to lack of financial power. Such include investment in schools, health facilities of clean water. Most multinational companies invest in countries with high poverty rates and appear to be in a position to eliminate some of the issues. Governments of the respective countries have the responsibility of alleviating the lives of the people. The citizens are a liability of the government and not the multinational investments in the area. Therefore, the businesses do not have a social responsibility of conducting corporate social responsibilities. The businesses can only undertake corporate social responsibility as a charity event but not as a social responsibility to the society.

As stated earlier, the business has a responsibility to ensuring the business does not violate the laws of the land or engage in illegal activities. Any individual with financial power is free to conduct corporate social responsibility (Keinert, 2008, p. 12). Some companies have lower income as compared to different people in the society. Compelling the company to help the people would not be realistic due to low financial capability. The obligation of the business is to observe the law and assist the people where possible. Compelling the companies to invest in corporate social responsibility is interference with the operations of the company. Therefore, the business is under no liability to undertake social responsibilities as a way of improving relations with the surrounding communities.

The income in business might be very high. However, it is the duty of the shareholders to decide what to do with their individual income. Helping the society trough corporate social responsibility is a kind gesture from the business. However, the business does not have the moral obligation to conduct the practice. A moral obligation is a responsibility that an entity owes to the public. However, multinational companies are private investments with the freedom to choose how to invest the generated revenue. All the activities in business should target generating higher income for the firm. Including corporate social responsibility in business is a sign of good will to the society but not an obligation. However, the businesses have a role in keeping the environment clean and safe for the public. The business has the responsibility of desisting from illegal practices in the firm. However, corporate social responsibilities are not a commitment for the companies.


Adi, A., Grigore, G. & Crowther, D. (2015). Corporate social responsibility in the digital age. Bingley, England: Emerald.

Idowu, S. & Vertigans, S. (2017). Stages of corporate social responsibility : from ideas to impacts. Switzerland: Springer.

Keinert, C. (2008). Corporate social responsibility as an international strategy. Heidelberg: Physica-Verlag.

August 09, 2021

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