Advanced Financial Accounting; Corporate Social Responsibility Essay

Advanced Financial Accounting; Corporate Social Responsibility - Essay Example The policy of CSR operates is self regulated and built in a mechanism in which a business ensures and monitors its compliance with the spirit of ethical standards, the law as well as international norms. When employed, CRS aims at embracing responsibility for the actions of the business and encourage desired impacts through its operations on the consumers, environment, stakeholders, communities and employees (Kvaal and Nobes, 2010, p. 180). CRS aids the business’s mission and guides it to stand for the will of its consumers. Sustainability development embraces business ethics through applying ethics that examine moral and ethical principles that are common in any business environment. CRS ensures a sustainable development approach to the business’s economic development, responsible environmental management and social progress (Luez and Verrecchia, 2000, p. 100). This follows the fact that CSR helps the organizations to have continued commitment to contribute to the deve lopment of the economy at the same time behaving ethically to improve the life quality of the employees as well as the local society and community at large. Businesses over the years have been promoted through CSR strategies now that the public, consumers and the investors expect them to be responsible and sustainable (Milllon, 1993, p. 1). In selected cases, CSR may result in a number of environmental, social and economic pressures and has been regarded as a strategy to divert the attention of interested parties from the environmental impacts and negative social impacts. The above situation has led to scholars to argue that businesses tend to tame the sustainability concept to imply that it is more than just an environmental and social engagement that businesses can be able to easily accommodate (Neville, 2012, p. 37) Businesses focus their strategies on identifying and employing CSR forms that lead to win-win situations for the wider stakeholders and business. They consider CSR as an extensions of the existing management toolkit meant to enhance shareholders wealth through offering business new opportunities and this is can be achieved through sustainable development like coming up with financial value, improving their management system, encouraging innovation, transparency to stakeholders, continuous improvement, risk awareness and enhancing reputation (Sheeba, 2011, p. 95.  ). Apart from considering CSR as a trade off or managerial distraction against profits, case proponents promote the idea of having the corporations taking charge of their social environment making it part of their main business activity. Including social considerations in the decisions of the business and employing a leadership role in social matters can also be looked at as means of promoting a light-handed strategy to regulations (Shim & Siegel, 2008, p. 81). CSR can end up reducing the future regulation prospects and be regarded as an alternative to business regulations. In such a context, CRS is hence mainly placed in the traditional framework of creating value for the owners of the business through putting more interest in the possibility of a win-win situation. Managing, understanding and responding to the expectations of shareholders can be looked at as self-interests that have been enlightened (Siegel & Shim, 2008, p. 29) Most businesses justify their approaches and strategies by referring only the positive correlations between profits, the activities of CSR and shareholders returns (Freidman, 2002, p. 63). This however should not be the case as any approach assumed by a business in relation to CSR depends on how ethical investment is defined and that