The size of businesses has increased steadily, assisted in part by the limited liability company. As a result, businesses are now so large they have gained a tremendous amount of power in the world. They have enormous economic power, employ huge number of workers, use up huge amounts of natural resources and can even influence political and legislative processes

Given the huge power some businesses wield, discuss the corresponding responsibility businesses should have in the modern global society?

in your answer discuss the concepts of

1. corporate social responsibility
2. the shareholders approach
3. Stakeholder approach
4. triple bottom line financial reporting

 

Given the huge power some businesses wield, discuss the corresponding responsibility businesses should have in the modern global society? In your answer discuss the concepts of Corporate Social Responsibility, the Shareholders approach, Stakeholder approach and triple bottom line financial reporting

Corporate Social Responsibility

A responsible business is the one that addresses adverse effects it might cause on society and benefits society at the same time. As stated by the Business News Daily, corporate social responsibility entails a business practice involving various initiatives that can meet society's needs (Ratajczak, 2020). Like most organizations set aside funds for programs that feed hungry people, businesses should also maintain responsibility in carrying out their work. If the tactics used in a business causes harm to workers, that business is seen not to be responsible ethically. Currently, most clients and workers prefer to work or use their money with businesses that prioritize CSR. There are various types of CRS that business can practice which include treating employees fairly, volunteering in community events, and offering donations to support community programs.

The Shareholders Approach

 Focusing on the shareholder approach, it views the company has been there for its shareholder's benefit. Notably, managers and the board are responsible for maximizing the value of the shareholder. Undeniably, this perception has a firm grounding in the notion of rights for the private property with shareholders in this sense viewed as the organization owners. Thus, another party is seen as only a tool value to the organization.

Stakeholder Approach

Additionally, the stakeholder approach views the firm as a social entity whose existence needs a broader range of parties' input, not only the shareholders. For this approach, business managers are supposed to ensure the survival of the corporation. Precisely, they should do in a manner that maximizes the total value the corporation established depending on what the beneficiaries see to be necessary for their interests (Roobeek et al.,.2018). Besides, the stakeholder approach sees the company's existence as needing other things that shareholders may not offer. Still, customers, bankers, environmental inputs, customers, and other participants to come together to see the firm exist and in operation

Triple Bottom Line Financial Reporting

The triple bottom line involves an accounting framework that incorporates three performance dimensions: financial, social, and environmental. The approach suggests that these all need to be considered in every business. Furthermore, to attain sustainability and evaluate performance, businesses have adopted the TBL.

References

Roobeek, A., De Swart, J., & Van Der Plas, M. (2018). Responsible Business: Making Strategic Decisions to Benefit People, the Planet and Profits. Kogan Page Publishers

Ratajczak, M. (2020). Models of Responsible Business: CSR from Social and Economic Perspective. Business Models: Innovation, Digital Transformation, and Analytics, 125.

Step-by-step explanation

I have discussed the responsibility businesses should have in the modern global society using the the concepts of Corporate Social Responsibility, the Shareholders approach, Stakeholder approach and triple .bottom line financial reporting