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Corporate Social Responsibility In Sauk Valley Community College

1282 Words6 Pages

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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