Summary OBS214 Chapter 3 - Corporate Social Responsibility and Citizenship
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Course
OBS214 (OBS214)
Institution
University Of Pretoria (UP)
Defines CSR and the stages there of, social entrepreneurship and B corporations. What management has to implement for reaching good corporate governance
Chapter Three:
Corporate Social Responsibility
and Citizenship
Corporate Power and Responsibility
, The power exerted by the world’s largest business organizations is obvious and enormous. This
influence is termed- Corporate Power: the capability of corporations to influence government, the
economy, and society, based on their organizational resources.
To get a sense of the economic
power of the world’s largest
companies alongside countries
whose total gross domestic
product is about the same as
these companies’ revenue.
The revenues of the wealthiest
company in the world, Walmart,
are about the same as the GDP
of Belgium. China Natural
Petroleum’s revenues are the
same as Chile’s GDP; Apple’s
revenue is the same as
Vietnam’s GDO. Amazon’s
revenues are the same as
Hungary’s GDP and BMW’s revenue are the same as Ukraine’s GDP.
The size and global reach of major international enterprises such as Walmart give them
tremendous power.
We depend on corporations for:
o Job creation
o Community well being
o The standard of living
o The tax base for essential municipal, state and national services
o Needs for banking and financial services, insurance, transportation, communication,
utilities, entertainment, and healthcare.
These corporations have the resources to make substantial contributions to political
campaigns, thus, influencing the policies of governments
They dominate not only the traditional domains of product manufacture and service
delivery, but also increasing reach into such traditionally public sector activities such as
education, law enforcement and provision of social service.
The tremendous power of the world’s leading corporations has both positive and negative effects:
Positives:
A big company may have definite advantages over a small one.
It can command more resources, produce at a lower cost, plan further into the future, and
weather business fluctuations somewhat better.
Globalisation of markets can bring new products, technologies, and economic opportunities
to developing societies, and help those in need.
Negatives:
Huge businesses can disproportionately influence politics, shape tastes, and dominate public
discourse.
They can move production form one site to another, weakening unions and communities.
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