For many years, it has been conceived that the initial goal of the business is to make a profit. However, some companies and corporations not only make a profit but provide services or product for humanity’s investment. Nevertheless, customers do not know suppliers are proving a safe service to the customers. These responsibilities are illustrated with Corporate Social Responsibility (CSR). Corporate Social Responsibility is defined as a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders (2017, Unido.org). This essay will demonstrate how do several organisations work in society and whether business’s only responsibility is to produce profit or not. This essay demonstrates how does corporation works in society and does CSR is relevant to business.
First of all, the goal of business is considered as making a profit. Therefore, CSR report has the huge impact on business’s reputation and profit. Milton Friedman (1912-2006) who is an American economist expressed that ‘To use its resources and engage in activities designed to increase its profit so long as it stays within the rules of the game’ (1962, Capitalism and Freedom). Business has a moral obligation to increase their profit. Any business cannot operate without profit. However, profit cannot make with the only certain process that business is providing to customers. On the other hand, business should take a responsibility for society and environment. These responsibilities can increase their Public Relations (PR) at society and open an opportunity to increase the profit. In an example of Norsk Hydro, which is aluminium and renewable energy source company and supply to other countries, they have stated on their CSR report ‘Norsk Hydro is committed to sustainable value-creation for our shareholders, other stakeholders, and the communities where we operate. We pursue opportunities while managing risks taking the social impact of our business operations into consideration’. This report tells to the customers, even they make a profit, they are considering about responsibilities at society and environment.
However, producing an aluminium has a lot of progressions that are damaging the ecosystem and surrounding villages. Aluminium production is started with bauxite mining. As a world’s main source of aluminium ore in Malaysia has a lot of bauxite, which was banned by the government right now, because of the dispose of the bauxite. The rivers ran red with bauxite sediment, staining the sea as they flowed out (BBC News,2016). Mining companies using the river water for cleaning their pay dirt. This procedure is making a catastrophic condition to villagers and river. This water will harm for farmers that using river water for their irrigation and another plant that is growing in the forest. Moreover, bauxite mining is not conforming with climate. The area which is mining field has a windy weather condition that making a lot of dust.
On the other hand, bauxite is the world’s main source of aluminium so is vital for the construction of everything from airplanes to saucepans and cooking foil (BBC News, 2016). It indicates aluminium exploration has changed the revolution of industrial field and revolution of the technology. Even our basic uses, which are computer technology and other machinery, are produced with aluminium. Bauxite is a mineral found mostly in a belt around the equator. Bauxite, containing 15-25 percent aluminium, is the only ore that is used for commercial extraction of aluminium today (Hydro.com, 2016). Moreover, there are a lot of minerals that are used in industry and other certain factors in the bauxite. Therefore, it is hard to ban the bauxite mining in this century.
In 2016, Hydro spent approximately 2,548,542£ on community investments, charitable donations and sponsorships, of which about 70 percent was related to community investments. In Barcarena, they have performed a feasibility study on a project aimed at engaging with families and individuals making a living from collecting waste that can be reused or recycled (Norsk Hydro ASA, 2017). This is illustrating corporation has made the significant investment in the vulnerable part of a society. it is also giving an opportunity at development and education field. They are socially supporting on their own country development and helping to the government at development field.
Second of all, a sweatshop is the biggest problem in the work field. They provide low wages, hard condition and long working time. It is also considered as a breaking the human right. Jeffrey Sachs professor said that ‘My concern is not that there are too many sweatshops but that there are too few,’ (Myerson, 1997). Most of the clothing companies use sweatshop to producing clothes with fast and multiple times. It is beneficial to the company as a there will not be lack of product and product is able to sell with the normal price in society.
However, child labour is concerned with a huge problem. For example, Primark, their product is mostly made with sweatshop. Primark recently axed three suppliers in India for passing work to unapproved sub-contractors using child labour (Mail Online, 2008). As a United Nations International Children’s Emergency Fund (UNICEF) say in their convention on the right of the child ‘States Parties recognize the right of the child to be protected from economic exploitation and from performing any work that is likely to be hazardous or to interfere with the child’s education, or to be harmful to the child’s health or physical, mental, spiritual, moral or social development.’ (UNICEF, 1990). Children body and the brain is not enough to process in the workplace. Moreover, the wages are too low when the children working in the sweatshop. Even they giving the small amount of productivity compared to adults, it is too low to them. For instance, ‘The documentary shows children like 11-year-old Mantheesh being paid just 60p a day by factory bosses to work in a refugee camp.’ (Mail Online, 2008). it happens in Primark, and for 60p it is hard to find meals for one day. Therefore, children do not tend to work at any place although they must have certain problems that let them work. This will harm company’s public relation and it would give disadvantage in the society.
Despite the different fact of that, even a business’s responsible for making a profit, CSR report is more significant to society and corporation because CSR report allows customers to avoid their unethical products. Moreover, when corporate providing a CSR, it will increase their brand image.