Note: Please help and write at least 800 words: I will appreciate it.

Q: With special reference to the chapter on Corporate Social Responsibility (CSR), Ethics, Business Ethics and Reasoning, and your own research and your reading of Quran and Hadith, The rules of Zakat income of Corporate Social Responsibility (CSR), and the current situation in Ukraine What you have been as an American Businessman will you stop Contribution any relationship with President Vladimir Putin?

CHAPTER THREE

Corporate Social Responsibility and Citizenship

The idea that businesses bear broad responsibilities to society as they pursue economic goals is an age-old belief. Both market and nonmarket stakeholders expect businesses to act responsibly, and many companies have responded by making social goals a part of their overall business operations and adopting the goal of being a good corporate citizen. Businesses embracing these responsibilities often build positive relationships with stakeholders, discover business opportunities in serving society, and transform a concern for financial performance into a vision of integrated financial, social, and environmental performance. Business ventures of all sizesentrepreneurial, small to medium business enterprises, and corporate endeavorshold innate responsibilities to those they impact market and nonmarket stakeholders. Establishing effective structures and processes to meet a companys social and corporate citizenship responsibilities, assessing the results of these efforts, and reporting on the firms performance to the public are important challenges facing todays managers and business owners

Do managers have a responsibility to their shareholders? Certainly they do, because the owners of the business have invested their capital in the firm, exhibiting the ownership theory of the firm presented in Chapter 1. Do managers also have a responsibility, a social responsibility, to their companys other market and nonmarket stakeholdersthe people who live where the firm operates, who purchase the firms product or service, or who work for the firm? Does the stakeholder theory of the firm, described in detail in Chapter 1, expand a firms obligations to include multiple stakeholders present in an interactive social system? Generally, yes, but while managers may have a clear responsibility to respond to all stakeholders, just how far should this responsibility go? Consider the following examples:

Starbucks Coffee Company launched a $70 million initiative to help coffee farming communities around the world mitigate their climate change impacts and promote long-term crop stability. Starbucks transformed a 240-hectare farm located on the slopes of the Poas Volcano in Costa Rica into a global agronomy center, enabling the company to expand its Coffee and Farming Equity practices program (C.A.F.E.). Starbucks chairman Howard Schultz said, This investment, and the cumulative impact it will have when combined with programs we have put into place over the last forty years, will support the resiliency of coffee farmers and their families as well as one million people that represent our collective coffee supply chain.1

Joshua Shapiro visited three small villages in Uganda and was shocked by the unsafe cooking conditions he saw there. Kitchens were small, dark, and unventilated. People could barely breathe. According to the World Health Organization, around 3 billion people cook and heat their homes using open fires and simple stoves burning wood, animal dung, and crop waste for fuel. Shapiro, an engineer in Carnegie Mellon Universitys CREATE lab, began working on an idea and returned five years later as part of the Toyotas Ideas for Good project to install a half-dozen hand-built, solar-powered ventilation systems to clear the air in the kitchens. Schapiro and his venture partner, Mike Taylor, assembled and installed an additional 25 systems during their second trip to Uganda and planned to construct hundreds more. These social entrepreneurs were funded by gifts and grants from various nonprofit organizations, corporations, and individuals.2

Are the efforts described above examples of social responsibility and citizenship practiced by a corporation and social entrepreneurs? Do they represent a successful merger of social and economic objectives, or should these programs be questioned as inappropriate uses of business assetsfinances, personnel, and products? How far should an organization or entrepreneur go to help those in society in need of their support? How much is too much?

This chapter describes the role business plays in society, introduces the concepts of corporate social responsibility and global citizenship, and describes how businesses implement them in practice. How organizations should balance their multiple responsibilitieseconomic, legal, and socialand become a valued corporate citizen is an ongoing challenge. What are the advantages and drawbacks of being socially responsible? Should the purpose or mission of the business explicitly seek to integrate social objectives with economic objectives? How does a business become a better corporate citizen; what steps are necessary? What standards do businesses use to assess their social performance, and how do they report their performance to stakeholders?

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Corporate Power and Responsibility

Undeniably, businesses, especially large corporationswhether by intention or accident, and whether for good or evilplay a major role in all that occurs in society. The power exerted by the worlds largest business organizations is obvious and enormous. This influence, termed corporate power, refers to the capability of corporations to influence government, the economy, and society, based on their organizational resources.

One way to get a sense of the economic power of the worlds largest companies is to compare them with nations. Figure 3.1 shows some leading companies alongside countries whose total gross domestic product is about the same as these companies revenue. The revenues of the wealthiest company in the world, Walmart, are about the same as the gross domestic product (GDP) of Belgium. China Natural Petroleums revenues are the same as Chiles GDP; Apples revenues are the same as Vietnams GDP; Amazons revenues are the same as Hungarys GDP; and BMWs revenues are the same as Ukraines GDP.