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Corporate social responsibility is only to make profit

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essey Corporate social responsibility is only to make profit

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The aim of doing business is to make money. It's no secret that today the success of the company's activities depends on the effectiveness of it’s internal environment’s organization. In fact, if the company does not fulfill its social obligations, it looks suspicious for partners and clients. The U.S. president Roosevelt once acknowledged that responsibility must be fully entrusted to the state and large owners, and he renounced the classical postulates of individualism. Very quickly smart owners realized that people are capital. So, as in any capital, you must invest in it, take care of it. In many corporations around the world, the post of vice president for CSR has emerged. America has developed numerous mechanisms for the participation of business in the support of society - a large number of corporate funds aimed at solving various social problems at the expense of business. Starting with their employees, companies gradually began to solve environmental problems, such behavior became a "good tone".

Richard H. Steckel, professor of economics at the Ohio State University, expressed the attitude of American companies to CSR in the most clearest way: «For companies that want to deal only with the production and marketing of their products, social responsibility seems to be a difficult task. Those who have not coped with it will lose in the competition. Companies that seek to solve it through strategic partnership with non-profit organizations will have a powerful tool to ensure the profitability and viability of their business for the long term» [1]

In the context of corporate social responsibility, people thought about human capital. Investing in human capital is now fashionable, companies are doing their utmost to create a policy of corporate social responsibility and try to entice the best employees not only with a high salary, but also with all sorts of bonuses. But, as well as fifty years ago, the priority directions of investing in human capital are education and health - what people really need. Businessmen, engaged in corporate social responsibility, are objectively interested in increasing human capital, as people will bring them more profit. In modern conditions, many companies are moving to a new system for managing the emotional state of a person:

  • Manage the employee's motivation both directly and indirectly;
  • use more subtle and emotionally colored positive (joy-giving) methods of increasing the effectiveness of the activity. [2]

[1] Models of corporate social responsibility. Tomsk State University Journal. 2013 № 4 (24).

[2] Social responsibility of business as an element of effective corporate governance URL: http://koet.syktsu.ru/vestnik/2008/2008-1/8/8.htm#_ftn1

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