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Corporate Social Responsibility In Sauk Valley Community College

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Sterling, Illinois serves as a perfect lens through which to examine the implementation and the effects of corporate social responsibility on a smaller, community-wide scale. Unbeknownst to many, corporate social responsibility has kept the town thriving and continues to benefit the school system and local workforce. One notable example is the founding of Sauk Valley Community College by former CEO of the Sterling Steel Company, Pete Dillon. By sponsoring the institution’s creation, Dillon has made the opportunity for higher education possible for thousands of local students. Furthermore, his philanthropy continues in the Sterling public school system with generous donations towards Apple lap tops and IPads for high school and middle school …show more content…

At a time when the distribution of wealth was skewed due to the former operation of monopolies, business leaders such as Andrew Carnegie, John Rockefeller, and J.P. Morgan began to develop early CSR through the emphasis of philanthropy. Specifically, Andrew Carnegie’s “Gospel of Wealth” introduced the idea that it was the moral duty of self-made businessmen to productively distribute their excess wealth for society’s benefit (Carnegie Corporation). Since this time period, more large corporations have adopted CSR and expanded on this ethical philosophy. In fact, in 1999, only 35 percent of the 250 largest companies in the world reported on corporate responsibility, but in 2011, 95 percent did (qtd. in Erbschloe). This can partially be attributed to government mandates on CSR reporting (Porter and Kramer); however, it clearly indicates a trend toward more companies embracing the incorporation of CSR in their business …show more content…

Another major CSR failure was the Enron Scandal in 2001. Initially to investors, Enron seemed like a lucrative opportunity with shares reaching $90.75 (Investopedia). However, CEO Jeff Skillings, in collaboration with top executives and the corrupt accounting firm of Arthur Andersen LLP, managed this feat by leaving debt and major company losses off of balance sheets or, in other words, perpetrating accounting fraud. Once the scandal was revealed to the public, stocks plummeted to under a dollar, and the company was forced to declare bankruptcy, severely damaging the portfolios of thousands of loyal investors and costing Enron employees their jobs. As a result, the Sarbane-Oxley Act was put into place to heighten the penalty for the fabrication of accounting documents. Therefore, by behaving in an ethical and socially responsible manner, businesses can prolong increase their chances of longevity and success by avoiding governmental fines, lawsuits, and even bankruptcy. Also, CSR contributions can help costumers forgive companies when other unethical decisions are

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The financial scandals in early 2000s caused the Sarbanes-Oxley Act of 2002 to be created. Enron, WorldCom and the accounting firm, Arthur Andersen, to intentionally mislead their shareholders by exaggerating their profits and understating their expenses. The scandals had raised the importance of internal control for enhancing corporate governance. Therefore, the government established the SOX to protect the interest of the investors and employees and to monitor the companies and auditors.

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Modern day businesses have to be socially responsible; actions are taken to satisfy customers who might have a cause that they care deeply. Social responsibility occurs when a person or a company acts in an ethical and sensitive way towards important social issues of the day such as economic, environmental, and cultural concerns. Many businesses have a section of their website or business literature dedicated to social responsibility. Companies proudly detail the steps they are taking to address concerns that people have with the environment and economic issues. Having companies act in a socially responsible way is necessary because their actions have a tremendous positive impact on society.

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Some believe CSR is disingenuous and a disservice to shareholders. Critics believe business practices intended to grow the business are not CSR, regardless if there seen as environmentally-friendly, humane, etc. Advocates of CSR believe the power of business is to do well and make society better; which is best done by fully incorporating CSR in business models. Professor Ivey summed up this idea by stressing CSR should be conducted strategically, not just ethically. He emphasized you must understand the financial implications of CSR, evaluate its risk, and consider your obligation to stakeholders. He stated CSR practices should bring in enough return on equity to warrant continuation.

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1042 Words | 5 Pages

Four years ago, I was on my way to graduate high school and dive into business education with a desire to make a difference in the world. I remember thinking about how amazing the Toms Shoes “One for One” business model was and that I would one day be able to take care of the world as well. While the Toms business model produced immediate results, I was determined to customize my education and learn to develop long-term solutions to problems, instead. That is what brought my attention towards pursuing the Socially Responsible Enterprise certificate once I learned about it at Leeds. Core Values Pursuing the SRE Certificate helped fuel my drive for a more socially responsible world.

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Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.

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First of all CSR helps increase profitability and value by using energy more effectively thus saving energy and manage waste in order to reduce it further. (Kielmas, 2014) Another advantage of practicing CSR is the build of good company image and reputation in front of customers. Consumers are more likely to trust a company that stands for being responsible and ethical in their values and practices. (Kielmas, 2014) The disadvantages can be financial for small business as the costs of CSR are usually high, allocates a budget for a CSR program can be a challenge.

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715 Words | 3 Pages

Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders . The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.

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1654 Words | 7 Pages

“Enron was a pioneer; they were risk takers and treated their employees like entrepreneurs. Think big; take chances, go where no one has gone before. Unfortunately, it now looks like Enron’s profit was as volatile as the natural gas they traded” (DeLongs, 2002). This dilemma was gradual and was years in the making. The simplest summary of the dilemma was that Enron was pushing a culture of promoting rule-bending and legal loopholes to continue their economic growth and success.

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1858 Words | 8 Pages

It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).

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713 Words | 3 Pages

Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders. The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.

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931 Words | 4 Pages

Kenneth Lay, Mr. Jeffrey Skilling and the company CFO, Mr. Andrew Fastow .The management level of Enron Corporation had misconduct the code of ethics and fail to performing the duties of a corporation which is telling the truth of the situation of a corporation .Instead , they tried try to hide the truth of their financial status and create a false prosperity situation and make the public believe on them in order to support their shares prices . The misconduct of code of ethics by the management level by Enron corporation has led to the another question – The ultimate responsibility of a corporation towards society ? The ultimate responsibility of a corporation is to gain profit or become a stable economic unit ?

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1027 Words | 5 Pages

Corporate Social Responsibility (CSR) has gained its importance as an essential activity for corporate nationally and internationally. It has become a matter of utmost importance for diverse groups demanding change in the business orientation. From 1980 to 2000, corporations recognized and started accepting a responsibility towards society. CSR implies some sort of commitment, through corporate policies and action. This operational view of CSR is reflected in a firm's social performance, which can be assessed by how a firm manages its societal relationships, its social impact and the outcomes of its CSR policies and actions.12

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3408 Words | 14 Pages

Trying to ignore the social responsibilities might stain an organization’s image and reputation. Thus, performing social responsibility is not simply a choice; it is a need of any corporation. In the twenty-first century, businesses are in the bottlenecks where globalization, science and technology advancement and integrated knowledge are taking place in today’s society (Chan, n.d.). To gain a foothold in this economy, image and reputation play an important role to differentiate a company from one another. With good reputation, it helps firms to create competitive advantage in the business environment.

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1262 Words | 6 Pages

Although it is a concept that was widely discussed during the last years, the idea that businesses have societal responsibilities became evident already from the beginning of nineteenth century (Pour et al., 2014). As companies are not only expected to have obligations towards their shareholders but also towards society, there has been an increasing interest in corporate social responsibility among scholars and practitioners and therefore it is a prominent issue for business community and academic literature in recent years (Su & Jie, 2015). Scholars were interested in investigating many dimensions of corporate social responsibility, mainly its relationship with corporation’s financial performance, its influence on consumer response, how it can create value for stakeholders and as a source of competitive

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1611 Words | 7 Pages

Social Responsibility in general terms is the obligation for an Entity, Individual or an Organization, to act for the benefit of the society at large. It creates a balance between economic goals and social, cultural, and environmental issues (Enevoldson, 2012). It is a noble act performed by an entity to fulfill societal needs and to ensure development of a strong well-bonded community. Universities imparting Higher Education are not isolated from the rest of the world and therefore the above definition applies to them as well.

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