Corporates Need Social Responsibility?

Multinational corporations come to developing country sometimes only invest their money to build industry or manufacturing to gain profit. They think paying taxes for the government and giving salary for employee is enough. Corporates have to embrace every stakeholder that will affect to their  business. They build business in foreign country that  must have consideration of multi-stakeholder interest in the environmental, social, economic and political that will impact of their action. The people of developing country begin to realize that their country’s sources is exploited by foreigner and local communities don’t get any benefit of their land. It’s fatal for multinational corporation that only rely on government power. The people will fight the corporation and sometimes it will turn into riots. This condition will make the corporation operations will be disrupted and create fear to employees who work in the corporation. However, the persuit of profit is primary for company to be able to live and survive. 

But as corporation has responsibility to develop society and increase society welfare, it’s because corporation is apart of society and get profit from local sources. Many corporations are closed due to pressure from the local community because their lives are ignored, do not feel the benefits of the establishment of the corporations where they live and corporations do damaging the environment that disrupt the life of the community.

To avoid the things that can be bad for the corporation needed Corporate Social Responsibility (CSR) that can reduce the impact that will disrupt the corporation operations. CSR is not viewed as if it is bad, where the company's good for society is just camouflage. Many assumes that CSR is corporate’s way to legitimize their business to get support from the community, CSR is seen as exploitative constructs. But CSR is a humanitarian and non-commercial activity that fosters community development to improve their welfare.

There is big difference between the profit orientation and a social conscience of entrepreneurs and other actors in business. When corporation is created, the first thing is how to get profit to keep corporation running and surviving. Helping the community will impact the reduction of profit, therefore the company provides a little assistance to the community. When corporates provide assistance to the community, a sense of gratitude for corporates was prevalent among the public, while nowadays corporates are expected to contribute to social and community welfare, apart from naturally continuing to provide welfare to their owners.

Corporate’s business was starting to recognize the benefits of working with the community. One might suggest this was a little naive since business has always understood the value of integrating with society, whether resources, customers or investors. The relationship between corporations and the society surrounding it is intertwined, and marked by mutual interdependence: The corporation is largely dependent on social stability, growth, due process guarantees, social peace and welfare of potential customers. Furthermore, managers and workers are of course, besides their work for the corporation, also members of other constituencies as citizens, consumers, and inhabitants of local communities (Keinert, 2008:23). (DD)