Traditional Culture Encyclopedia - Traditional stories - How to understand the phrase "excellent enterprises should bear the corresponding social responsibility", it is best to have relevant examples to do to explain.

How to understand the phrase "excellent enterprises should bear the corresponding social responsibility", it is best to have relevant examples to do to explain.

1. What is Corporate Social Responsibility

The formal definition of Corporate Social Responsibility (CSR) has been discussed many times in domestic and foreign forums, but there is still no consensus. At present, the international community generally agrees with the concept of CSR: while creating profits and being responsible for the interests of shareholders, enterprises also have to undertake social responsibility for their employees, society and the environment, including the observance of business ethics, production safety, occupational health, the protection of the legitimate rights and interests of laborers, and the conservation of resources.

While there is no single definition of CSR, in essence, a company pursuing this approach needs to do three important things:

1), the company recognizes that its operations will have a significant impact on the society in which it operates; and that social development will likewise affect the company's ability to pursue its corporate success;

2), in response, the company actively manages the economic, social, environmental and human rights impacts of its worldwide operations not only so that they benefit the company's business operations and corporate reputation, but also so that they benefit the societies in which it operates;

3) the company achieves these benefits by working closely with other groups and organizations, local groups, and societal and governmental sectors.

According to CSR, companies located around the world, regardless of their local economic, political and social conditions, are recommended to adhere to these high standards.

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The World Bank defines Corporate Social Responsibility (CSR) as the collection of policies and practices related to a company's relationships with key stakeholders, values, compliance, and respect for people, communities, and the environment. It is a commitment by business to contribute to sustainable development in order to improve the quality of life of its stakeholders.

Other references: the so-called "corporate social responsibility" (corporate social responsibility), refers to the fact that in the market economy, the responsibility of enterprises, in addition to the pursuit of profits for the shareholders (stockholder), should also take into account the relevant stakeholders (stakeholder), that is, the stakeholders of the company. (stakeholder), i.e., the interests of the parties that influence and are influenced by the enterprise's behavior. Among them, the interests of employees are the most direct and major element of CSR. CSR is not a new concept. The concept was brought up in the 1920s with the continuous expansion of capital which caused a series of social conflicts, such as the polarization of the rich and the poor, social destitution, and especially labor problems and labor-management conflicts.

2, corporate social responsibility how to implement

Corporate social responsibility is the focus and difficulty is how to implement, which is now the public generally feel confused about the problem. In order for CSR to be realized, it must be implemented in the governance of the enterprise. An effective corporate governance structure should include a mechanism for assuming and realizing CSR, which can comprehensively take into account the interests of stakeholders when the enterprise is facing decision-making, and make the decision-making behavior in line with the principle of maximizing the value of the enterprise's stakeholders, so that the enterprise's behavior can be expected and controlled. From the perspective of society as a whole, only when enterprises have such a corporate governance structure can they form a micro-foundation for realizing the sharing of social responsibility. On this basis, the government can then use macro-control tools to formulate appropriate public **** policies to guide enterprises to assume the corresponding social responsibility.

Below we start from the system and mechanism of corporate governance, discuss how to realize corporate social responsibility in the corporate governance structure.

1) Who will undertake it?

We go back to the question mentioned in the opening paragraph, a banking guest at the Hurun Philanthropy Forum said that they dare not use depositors' money for charity - a statement that points directly to an important but often unclear question: who should bear the social responsibility of the enterprise? Is it the operator of the enterprise? The board of directors? Or the shareholders?

From the basic logic of corporate governance, a company's shareholders elect a board of directors and entrust them with the management of the company's affairs. The board of directors makes strategic decisions and selects capable managers, delegating day-to-day management to the top management of the company. Thereafter, the directors are accountable to the company, and in doing so, they may make decisions that some or all of the shareholders believe do not serve their best interests. In such cases, shareholders may exercise their power at a general meeting to elect a new board of directors that they believe will most faithfully safeguard their interests. In this logic, shareholders do not have direct decision-making power over the affairs of the company, but delegate that power to the board of directors. While the board of directors has the right to make decisions, it should also assume the corresponding corporate responsibility. Therefore, the social responsibility of the company should be borne by the board of directors, not by the shareholders directly.

2) The way of assuming

In 2005, Fortune magazine selected the "Most Admired Companies" list. To compile the list, Fortune, through the Hay Group, a management consulting firm, interviewed more than 10,000 directors, officers, and managers of 357 companies around the world, asking each respondent to rate other companies in his or her industry on nine criteria. One of the nine criteria was "corporate social responsibility," and the ten highest scoring companies were Tesco (UK), International Paper (USA), Anheuser-Busch (A-B), Safeway, United Parcel Transportation (UPT), and the United States. Safeway), United Parcel Transportation (UPS), Weyerhaeuser Forest Products and Building Materials (USA), Disney, Aluminum Company of Canada, Alcoa, and Chevron USA. In the next section, by analyzing the practices of these ten companies, we discuss the institutions and systems through which CSR undertaken by boards of directors is generally achieved.

3. Corporate social responsibility: a ****win for business and society

Corporate social responsibility? Some people are indifferent to this. They believe that the first priority of any enterprise is to maximize profits and create economic benefits, it has achieved its social responsibility. As for other social responsibilities of enterprises, they should do it if they have the ability, but forget about it if they do not have the ability. Certain people in the economic management sector also have a vague understanding of this issue, believing that as long as all enterprises maximize their profits, they will be able to maximize the interests of the country. Certain enterprises listed overseas even say, my shareholders are foreigners, to assume social responsibility, foreigners can agree?

With the further deepening of reform and opening up and the further establishment of the market economy, enterprises are becoming independent market subjects. Enterprises are becoming independent market subjects, and they are not only business subjects in economic activities, but also play an equally important role in social activities. International and domestic experience shows that enterprise operation and development are bound to be influenced and constrained by social factors, and compatibility with social development and community building has become an important factor in the success of modern enterprises.

Recently, pollution, mining accidents, toxic fans, tainted milk powder, Teflon, Sudan red, paraffin oil ...... these frequent and alarming words, so that the people of the "corporate social responsibility", to improve the enterprise "civic" responsibility calls. Citizenship" responsibility of the call is growing louder and louder. In May of this year, held in Beijing, "Fortune" Global Forum, the Ministry of Commerce Research Institute of Multinational Corporations Research Center Director Wang Zhile said that, in terms of China's localized companies, most of the enterprise's awareness of social responsibility is not strong, and is still in the "shareholders' interests to maximize the" level. According to Wang, an enterprise will go through three stages of development: purely earning money, pursuing scale and "corporate citizenship". Today, the vast majority of Chinese companies are still in the first stage, while some have entered the second.

An enterprise as an economic entity, its role as an "economic man" determines that it must pursue profits and maximize enterprise value. However, the maximization of enterprise value is not the same as the maximization of profits, but in the process of maximizing profits, to achieve the maximization of corporate brand, reputation, social image. This requires enterprises to take the initiative to assume the corresponding social responsibility, that is, from "economic man" to "social man" change. Therefore, the role played by the enterprise is not only an "economic man", but also a "social man".

Enterprises come from the community and must give back to the community, which is a new situation of social relations. Enterprise benefit is not equal to social benefit, local interest is not equal to the overall interests. And the life and death of the enterprise, development and growth or eliminated from the game, are to be undertaken by the community. More importantly, the enterprise is the cell of the society, leaving the social resources, the development of the enterprise has become a source of water, no wood, without a good environment, the enterprise is difficult to survive. Therefore, the enterprise and the society is ****ing glorious relationship, the market economy under the enterprise and the society even have a closer relationship, rather than become relatively distant.

In addition, the enterprise's sense of social responsibility is also related to the overall social and economic operating costs. Imagine, if the public transport companies are only willing to open the best time, the best section of the bus line, that the whole city's traffic must be paralyzed; if the postal service companies are only willing to do the most profitable city courier, those who send to the remote mountainous areas of the letters, parcels, may be unattended; if the oil companies are only willing to supply high-grade gasoline Mercedes-Benz cars, and for the vast number of farmers to supply affordable diesel fuel is of no interest, then the society will become what? What will become of society? If we go on like this, there will be many more ifs. From this, we can clearly see that some enterprises' assumption of the necessary social responsibility may affect their own profitability, but their service reduces the economic operation cost of the whole society and serves the people. From this point of view, its social benefits are again very great. What's more, enterprises taking up these social responsibilities have already been given a complementary taste of society. They have either gained the benefits of industry monopoly, or monopolized the occupation of resources belonging to the whole society.

This shows that the assumption of social responsibility is not unprofitable for enterprises, but rather "all profits". At the same time, undertake social responsibility, although the enterprise will pay a certain cost, but also to the community to prove their own sense of social responsibility, to prove that they can in the business activities of the public **** interests and the overall interests of the community in an important position, so as to bring the public recognition. Moreover, the enterprise takes the initiative to undertake social responsibility is also to show their own strength, produce the excellent means of advertising effect, can create a good external atmosphere for the enterprise. Therefore, enterprises should not only learn how to earn money, but also learn how to spend money, i.e., what is taken from the society, is used in the society. Enterprises take the initiative to bear the corresponding responsibility is a sign of progress and civilization, through which they can win the trust of the public and continue to grow bigger and stronger. Therefore, consciously fulfill the social responsibility, is not only the objective requirements of society, but also the enterprise's own development needs.

Taking a closer look at these concepts, in fact, it is not a brand new creation of the international social responsibility movement. Because, for thousands of years, traditional Chinese culture has been advocating the "goodness of people", "unity of mankind" and so on, in fact, also contains a profound idea of social responsibility. Therefore, in the face of the wave of international social responsibility movement, we should carry forward the essence of traditional Chinese culture, learn from the advanced experience of the West, the beneficial management concepts gradually into the production and operation of enterprises.

Now the government puts forward the strategic policy of "insisting on people-oriented, establishing a comprehensive, coordinated and sustainable concept of development, and promoting the comprehensive development of the economy, society and people", which requires that enterprises, while pursuing the maximization of profits, should also unify the economic and social benefits of the production and operation of the enterprise.

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4, the enterprise to assume the corresponding social responsibility is an enterprise survival of the bottom line

Centuries ago, when the Chinese people are still fighting for independence and autonomy of the status of the courageous struggle, the United States, Britain, Germany and other traditional economic powerhouses have been by virtue of the open and developed business environment created a large number of outstanding enterprises: Bayer of Germany, DuPont of the United States, Lafarge of France, Nestle of Switzerland ......

In the process of development and growth over the centuries, these multinational corporations not only created enormous material wealth for the world, their advanced enterprise management concepts and perfect corporate social responsibility concepts accumulated over the years have also become an important part of human business history. The concept of advanced enterprise management and perfect corporate social responsibility has also become a valuable spiritual wealth in the history of human business.

As early as 95 years ago, DuPont set up the world's first corporate safety committee, 66 years ago, put forward the concept of "all injuries can be prevented"; in 1901, Bayer set up a wastewater treatment committee, in addition to the General Motors in the implementation of social responsibility, "actions speak louder than words". "In addition, there is General Motors' pragmatic attitude of "actions speak louder than words" in the implementation of social responsibility; NEC Corporation's dialectical thinking in front of the question of "Serving the public or letting the public serve you? NEC's dialectical thinking in front of the question; Johnson & Johnson's business logic of viewing corporate responsibility as a "must-answer" question for business development.

Not only that, many multinational companies each year in the release of the company's annual report, the annual financial report at the same time will be regularly released corporate social responsibility report, corporate citizenship report, which includes the United States, Pfizer Inc. each year issued the "Annual Corporate Citizenship Report", Germany, Bayer AG each year issued the "Annual Sustainability Report", Germany, Siemens AG each year issued the "Annual Responsibility Report". Siemens Corporate Responsibility Report" ......

The perfect interpretation of CSR by multinational corporations has won applause, but has also been questioned. Some people even use the term "yangmou" to describe a series of behaviors of multinational corporations, believing that they enhance their corporate image by announcing the status of corporate social responsibility to stakeholders, and that their means of publicity for the company is quite clever.

The Chinese multinationals agree that although profit is always the ultimate goal of business, there is no contradiction between business development and social responsibility.

In many countries, corporate social responsibility is the bottom line for a company to survive. Without such awareness, you may not even be qualified to participate in the competition.

So at this stage, corporate social responsibility is no longer a multiple choice question, but has become a question that must be answered by every enterprise wishing to develop sustainably in the long term.

Reference: Chinese enterprise culture network