Corporate Social Responsibility

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Embry-Riddle Aeronautical University **We aren't endorsed by this school
Course
MGMT 201
Subject
Management
Date
Nov 19, 2023
Pages
5
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Corporate Social Responsibility Student: Jaime Siguencia Embry-Riddle Aeronautical University MGMT 201: Principles of Management Instructor: Matthew P. Earnhardt, Ph.D. Date: October 2, 2022
Over the years the world has experienced certain changes that impacted the world in different ways, and these changes made worldwide society think from a different point of view about topics and situations that began to require more attention over the years and that they no longer must be attended in the traditional way as in the past. Generational changes and technological advances take an important part in the equation, considering, new generations have found methods to promote campaigns and raise their voices for or against situations that the world today presents, and by the appropriate use of social media these movements can send a message worldwide and make their voices heard. Climate change is undoubtedly one of the biggest concerns that today's society has, and it is a problem of great concern that is already showing its negative impact on planet earth, such as melting glaciers, long areas of trees that disappear because of the felling of trees, and the extinction of species. Consequently, companies and industries have shown their concern and intention to take action on this issue, implementing methods and strategies that can contribute to the cause but at the same time generate a positive impact on society, on the other hand, shareholders are an important part of this theme since these individuals they want their investments to remain sustainable and to represent a sufficient reason to continue trusting the shares deposited in a company. As Human beings, we have been able to evidence situations and controversies around various companies that have put the business on anything, including the lives of animals and human rights themselves, but these cases deserve to be treated in more depth but are not part of the purpose of this essay but are a background to understand that in the world there are also companies that have adapted their philosophy to the current world and their behavior has been modified to positively impact the world. The Forbes article "Total Societal Impact Is The Key To
Improving Total Shareholder Return" states that " Consensus continues to build in the corporate community that in delivering total shareholder return (TSR) for their investors, businesses must also consider the impact they will have on society in doing so", but it is important to understand that Total Societal Impact is not considered just a single metric, it is a collection of measures and assessments that capture the economic, social, and environmental impact (both positive and negative) of a company's products, services, operations, core capabilities, and activities (Eccles, 2017) . Furthermore, the companies that have adapted TSI as part of their business take into consideration the positive balance between the financial side and the company's nonfinancial performance on the environmental, social, and governance (ESG) issues that are material to its sector and strategy (Eccles, 2017) . On the other hand, Corporate Social Responsibility aims to show employees, customers, and shareholders about the business's ethics by showing this business cares about social and environmental concerns, the article "What Is Corporate Social Responsibility?" cites examples of how CSR benefits fluctuate in many areas and how socially responsible corporations tend to see these benefits: Improved public relations, Higher brand recognition, Satisfied customers and shareholders, Successful financial performance, Ability to attract and retain talent, Lower costs, Ability to make positive changes (Indeed, n.d.) . Consequently, it is important to mention certain companies that materialized and integrated TSI as part of their business vision such is the case of "Total", a French company that has been working since 1924 in the oil and gas field being one of the pioneers, this company has created sophisticated products using its refineries and has positioned itself as one of the giants worldwide in the energy industry. Since the begging of the 21 st century, Total has integrated climate change as part of its decision-making, changing strategies that focus on oil reduction and supporting the increase of natural gas in its portfolio by exiting the coal business in 2015,
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