Broad and narrow view of corporate responsibility
An organization is meant not only to serve its internal public and pitch great clients, but is also supposed to take equal care of its external public and environment. The companies today, have to make sure that each step it takes is in alliance with the benefits of its both type of public, Internal public (the employees), and external public (the clients or customers). One more addition to this target audience is the environment and the potential audience, the company caters to. This has come under the surveillance of the new responsibility, the companies these days have been handed over with, that is, the corporate social responsibility. CSR is building up to be the new annual target for the corporates, which aims to instill the value of environment accountability in its respective employees. Moving further, there are two basic views of corporate responsibility, the broader view and the narrow view of corporate social responsibility.
The broader view of corporate responsibility
Here the companies are accountable for taking care of its environment and lending a supporting hand to the improvement of the society around. Most of the Multinational companies and other big national organizations are contributing their part to the improvement of society under the broader view of social responsibility. As a part of these activities, the companies work on the basis of projects and assigns its responsibility to the employees who volunteer for making a change to the environment.
In lieu of the benefits the companies provide to its CSR audience, it also gains a lot of appreciation and recognition from its stakeholders. With activities like these, the companies get the chance to register its name in the good books of the clients and transforms its potential customers to regular ones. Moreover, when a customer sees his personal choice of brand being associated with a Corporate Social Responsibility, then he takes pride in being associated with the brand and becomes a life- long supporter of the company.
Few of the major goals for CSR activities carried out by giants of today are to reduce energy consumption, minimize the carbon footprints, reduce greenhouse gas emission, improvement in the labor policies and many other contributions towards the betterment of the living standards of the BPL people in different parts of the world. Although, every company today is carrying out one or the other activity under the tag of Corporate social responsibility but few of the companies which are doing it perfectly right are Johnson and Johnson, ARUP, Google, Coca Cola, National Bank of Australia, Netflix, PwC, Wells Fargo and GHD.
Narrow view of Corporate Social Responsibility
The opinions of the practitioners of narrow view of Corporate responsibility are much against the supporters of the broader view of CSR. According to the narrow view, the companies motive should only be aligned towards the achievement of monetary gains for the self- entity. It does not believe in investing time and money in the activities of social reforms. Also, the biggest supporter of narrow view of social responsibility, Milton Friedman states that if companies will divert their orientations towards social causes then it will reduce the effectiveness of the company’s workforce. He believes that taking care of the environment and the social tasks, are the responsibilities of the government and NGOs, the organizations should only direct their vision towards profit yielding services.
However, almost every company today is shifting their approach of work towards broader view of social responsibility and adapting ways to contribute towards the advancement of society. Also, there are almost no companies today which are following the narrow view of corporate responsibility, because of which the narrow view can be said to be depleting from most of the rule books of corporates across the Globe.