Corporate Social Responsibility

Developer: MsF.Econ. VELEZ FELIX CAMPOVERDE

University Professor and Business Consultant, Guayaquil-Ecuador

"Companies do not always go bankrupt for lack of resources but because of his administration?

Given the uncertainty of bankruptcy business, financial crises and corruption scandals that occurred in large multinational corporations, and government level, the desire for maximum accelerated benefits, has brought into question the traditional model of doing business and dominant propose Milton Friedman (monetarist Liberal-1970), in which "the goal of corporations is to maximize and optimize their levels of economic benefits? and if the company sacrificed profits in the name of social responsibility, Friedman plan would be less attractive to investors, workers and consumers, and eventually perish from competitors.

The challenge to Friedman, has its validity as within the company are only costs and expenses, and beyond to find customers who generate the revenue (sales) in recognition of quality, service or product offers, which gives the company stability and growth in the market, creating comparative advantages are manifested in the ability, resources, knowledge, and attributes and so on., in which the company faces competitors that lack.

The origin of the movement of CORPORATE SOCIAL RESPONSIBILITY .- Some authors noted the thirties and others in the seventies, but the fact is that since the nineties this concept has gained strength and continually evolved after the advent of globalization , the acceleration of economic activity, environmental awareness and the development of new technologies.

Corporate Social Responsibility (CSR), is now a competitive factor not only between businesses but between countries seeking to position themselves in new trading blocs, the European Economic Community has covered and encourages the implementation of CSR

What is corporate social responsibility or corporate social responsibility (CSR or CSR) .- This is a business management model adopted by senior management of a company to act on behalf of different groups with which it interacts (stakeholders or interest groups customers, employees, suppliers, shareholders, community and state), by complying with obligations and legal and ethical commitments, so that companies are socially responsible, and the activities that focus on meeting the needs and expectations of its members, society and those who benefit from its business, as well as the care and preservation of the environment, incorporating the economic, social and environmental strategic planning of their operations.

In this philosophy are considered a comprehensive set of policies, procedures and programs that are implemented throughout the business operation process. usually with the aim of improving their competitive position, valuation, and its added value, resulting in the direct correlation between Social Responsibility practices, profitability and long-term sustainability.

Therefore Social Responsibility (CSR) should be understood as the way of doing business beyond the fulfillment of legal regulations. In other words, the law must be fulfilled by the very rule of law and CSR of doing business in a "sustainable?. I mean the management skills and ethical values ​​inherent in the administrative process,

The essential elements of CSR: 1) Transparency, 2) Access to information and 3) Accountability. Of these items benefit more companies to become more attractive to customers and suppliers; reason, makes them competitive and can make higher profits by providing the customer what they need.

Corporate Social Responsibility prevents social risks that can be translated into demands, penalties, excessive government regulation, loss of market image and may lead to the demise of the business, as companies are really responsible for the ethical, social and ecological of its activities, products and services.

Businesses should start managing the CSR., Otherwise not only a legal rule that will punish him, but consumers themselves are responsible for it, because if the company sees a price on people, people will see the company its price, and enough to display a company with the same product, quality and price, so that switching supplier and this is because nothing commits, nothing motivates them to continue contributing to the growth of a company that takes but does not contribute.

Is the goal of Corporate Social Responsibility?.

Strengthen corporate governance through the implementation of practices and procedures of the company, its directors and members in each of its relations with all stakeholders (stakeholders) to:

· Preserve the economic success and competitive advantage creating a good reputation and gaining the trust of the people who work for the company or live near it.

· Customers want reliable suppliers recognized for the quality of its products and services.

· The suppliers want to sell to a customer who purchases on an ongoing basis and pay promptly.

· The Community wants to know that the company acts in a socially and environmentally consistent.

· The workers want to be in a company where they can be proud of and value their contribution.

· The State wants the compliance and sovereign laws for the welfare of the community

• The shareholder, who wants to invest their return and profitability by ensuring a transparent, maximizing profits without harming anyone, win-win-win .GANAR.

So to remain competitive, companies must adapt to these new market demands and the society in which they act otherwise they will lose the positive impacts that could be obtained from the application of Corporate Social Responsibility:

ü Allows to serve society with useful and fair.

ü Create wealth in the most efficient way possible.

ü Reduces company costs

ü Increased productivity and profitability

ü Loyalty and customer appreciation

ü Decreased operational risks (financial, quality, safety and environment), helping to mitigate the potential crisis

ü Supports Government Relations

ü Increase in market share

ü Improvement of organizational culture

ü Ability to attract the best talent and supports employee communications

ü Increase in firm value (Value at Risk Value at Risk)

ü Supports shareholder relations

ü Improvement of internal and external communication

ü Reliability and support of financial markets and investors

ü Commitment and commitment of its employees

ü Trust and transparency with suppliers

ü Supports advertising in the media

ü positive corporate image and esteem of the society

or opportunities for new business

ü Improve the reputation of the company

ü Try the continuity of the company and, if possible, to achieve reasonable growth

ü Respect for human rights to decent working conditions that promote health and safety and human development and professional workers.

ü Respect the environment as possible avoiding any contamination by minimizing waste generation and rationalizing the use of natural resources and energy.

ü Comply strictly with laws, regulations, norms and customs, respecting the legitimate contracts and commitments.

The old question Can companies be competitive without acting ethically and socially responsible way? Hardly, just be competitive without values, means that a company can be competitive in the short term without ethics. To be competitive in the long term, the company must first be ethical and based on this search for competitiveness.

We must distinguish between initiatives such as charity or philanthropy can complement but never replace social responsibility as business practices reflect a commitment to socially responsible business in a way that preserves or increases, rather than damage, the benefits to nearby communities, workers, the environment and fair economic behavior.

However, just is not enough commitment, this process must be accompanied by clear mechanisms for implementation or implementation of the principles and values ​​of CSR, including monitoring and verification for continuous improvement.

FELIX CAMPOVERDE

...