Justification of CSR to Key Stakeholders Essay Example | Topics and Well Written Essays - 1250 words

Justification of CSR to Key Stakeholders - Essay Example This paper illustrates that in his statement, Friedman asserts that the business of the company is the business of the enterprise. In saying this, he attempted to show that corporate social responsibility is not desirable at all. Moreover, he argued that the only CSR of a company is to maximize profit and any use of its resources for the benefit of the other stakeholders is a waste of resources by the management. However, there are several ways in which corporate social responsibility can be justified to the key stakeholders of the company as outlined below. One of the ways in which CSR can be justified to stakeholders is on the benefits that accrue to the consumer before they are eventually transferred to the company. CSR enables the company to provide quality products to customers. The products are also measured in their right quantities, appropriately packed and are fairly priced. In doing this, companies observe corporate social responsibility to their consumers. On the other han d, benefits are accrued to the firm in the form of customer loyalty and increased demand for the products produced by the company. CSR to the customers translates into increased sales in the long run. Secondly, CSR to the suppliers also benefits the company. Companies regularly deal with many suppliers hence the need to observe CSR with these suppliers. One way of doing this entails offering fair chances in tender allocation, prompt payment and also avoiding default in payments. The emergent benefits can be used to justify the need for CSR in any business. One of the advantages of this is that a firm can receive goods on credit from the supplier due to the good relationship attributed to CSR. Also, the providers tend to offer quality supplies to their best customers and hence the business would immensely benefit. Notwithstanding, the market is likely to receive services from providers at a subsidized rate when it observes corporate social responsibility towards them. In this light, there is a need for any business to be socially responsible to its suppliers.