Theories Of Corporate Social Responsibility Commerce Essay

In the olden yearss, concerns were largely with the thought of doing net incomes and bing into the unforeseeable hereafter. Gradually, it has changed dramatically and has shifted attending to duties that houses have. For many old ages bookmans have learnt houses ‘ public concerns ( e.g. , Berle, 1931 ; Bowen, 1953 ; Davis, 1960 ; Dodd, 1932 ; Frederick, 1960 ) . Still, it is merely presently that attractive force in Corporate Social duty ( CSR ) has become extended ( Serenko & A ; Bontis, 2009 ; Wagner, Lutz, & A ; Weitz, 2009 ) . CSR is a pattern with the intent of encompassing duty for administrations behavior and back uping a definite impact through its activities on consumers, employees, stockholders, environment, communities, and all other members of the public range who may besides be considered as stakeholders. Other names for CSR include societal public presentation, corporate citizenship, corporate scruples, or Responsible Business or sustainable responsible concern ( D Wood, 1991 ) . Separate A of this paper describes the three theories of Corporate Social duty, which are the managerial, useful and relational theories ( Secchi, 2007 ) . The pattern and significance will besides be discussed as CSR seeks to pay attending to attempts that is being put to communities which they are situated, and whether they are been used for the right intents. The treatment will be on how Anglo-gold Ashanti, Obuasi excavation operations has impacted the community both positively and negatively. A personal analysis will be made on whether company pratices the stakeholder theory and a decision at the terminal.

Theories of Corporate Social Responsibility

Utilitarian Theory

The grey thought of laissez faire concern gives manner to determinism, individuality to public control, and personal duty to societal duty. Instrumental theories could besides be taken equally with Utilitarian theory ( Garriga and Mele, 2004 ; Jensen, 2002 ) in which the concern is perceived as merely a mechanism for wealth devising, every bit good as its public actions are merely a agencies to achieve profitable results. The concern is considered as portion of the environment that it is situated in. This theory assumes the concern has a duty to integrate CSR in their day-to-day working concern moralss. Part of the useful attack which is the functionalist besides describes the concern as portion of the reverberation system therefore has a responsibility to do net income for its stakeholders through investing in profitable ventures.

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Managerial theory

Secci ( 2007 ) scrutinies explained the logical thinking of managerial theory that points out corporate direction in which CSR is approached within the corporation. The differentiation between the two theories is that, managerial theory suggests that all things outside the range of the concern be taken into history when doing determinations. Corporate Social Performance ( CSP ) , theories on societal answerability, scrutinizing and coverage and societal issues in international concern are the divisions in the Managerial theory. This theory is connected to political theories based on conveying out an thought, explicating and be aftering it mentally, Garriga and Mele ( 2004 ) , and supported by Wood and Lodgson ( 2002 ) . It explains that the illustriousness and power a concern has should demo in his engagement in the community it is situated and that the concern itself is a citizen in that community.

Relational theory

Relational theory has a root from the complex firm-environment relationships. The theory was unfolded by Garriga and Mele ‘s ( 2004 ) analysis of stakeholder attack and was backed by the work of Mitchel, Agle and Wood ( 1997 ) . The focal point of this theory is between the concern and the environment. It has four sub-divisions chiefly the concern and society, stakeholder attack, corporate citizenship and theory of societal contract. It talks more about the concern and its society and besides stressing on the stakeholder attack.

Anglo-Gold Ashanti, Obuasi

Obuasi Gold mine started its operations in 1897 when it was known as the Obuasi mine. Since 1975, the mine has been badly condemned for its environmental pollution, but still continues till day of the month. In 2004 the company merged with Anglo gold Ashanti- South Africa and changed its name to Anglo-gold Ashanti, Obuasi. The company employed over 5700 people in 2009, hypertext transfer protocol: // ( Accessed on 04/12/2012 ) . Mr. Kwesi Enyan is presently the pull offing manager of the company.

Positive Impact of the company on the community

Anglo-Gold Ashanti has a trust fund that was created by the authorities of Ghana and the company. One per centum of the company ‘s net income at the terminal of every twelvemonth is directed to the fund which would be used to develop the community. The company built AngloGold-Ashanti ( AGA ) primary and junior secondary school. The school is still one of the largest and well-designed junior secondary schools in Ghana. The school developed many gifted people with some traveling on to go directors and CEO of large companies in Ghana.

The company besides built a infirmary near one of its shafts which attended to demands of people of staffs. The infirmary was linked to the authorities as portion of an inter-governmental HIV AIDS intervention plan. The company distributed rubbers with wage faux pass and besides at pregnancy and kid attention subdivisions at the infirmary. The infirmary proved really critical to the community as there were non many infirmaries when it was built. The infirmary treated a batch of diseases and infections of employees and their kids.

The company late opened the Malaria Control section which is independent from the company now but works hand-in-hand with the company. The Malaria control programme has reduced the rate of malaria deceases drastically and besides given chance to a batch of occupation chances for people in the community.

Negative impact of the company on the community

During the procedure of excavation there are many gases which are released which pollute the air and distribute a batch of diseases to the community. Many people fall ill and die due to some of these intolerable gases used in excavation. Mining has accounted for a batch of deceases in communities that they operate. Companies still do non care because every bit long as they make net incomes for their stockholders and if company keeps turning, they are alright. The company has besides been to a great extent criticized of largely using dependents of its workers. This has resulted to a batch of young person in the community rehearsing illegal excavation popularly known as “ galamsey ” . There are about 500,000 little graduated table mineworkers composed of illegal and legal mineworkers. There have been clangs between company workers and “ galamsey ” male childs which the workers were wounded. This epitomizes the tense relationship between the two parties.

Immoral issues are raised against some directors of the company. There is unfavorable judgment levelled against recruitment policies of the company. Some ladies are sexually abused before being employed. There are besides issues of tribalism and how there is inequality in enlisting policy and prejudice on the portion of some directors in presenting publicities. Many husbandmans besides have to go forth their lands because of excavation activities, these excavation activities has destroyed a batch of flora.

Mining activities besides destroys H2O organic structures and other natural resources which deprive the society and authorities of needed gross.

The company surprisingly besides employs immense Numberss of foreign labor which truly worsens and increase unemployment rate in the community and the state as a whole. The unemployment rate in Ghana including the informal sector is estimated 11 % with approximately 28 % of the population life below the poorness line.

Is the company rehearsing relational theory and the Stakeholder attack?

From 2007-2009, there were no sedimentations added to the trust fund and as at January 2010, no financess had been disbursed. Peoples started raising inquiry Markss to the existent utility of the financess and whether the undertakings were merely made out of merely the company being generous.

Some of the company ‘s corporate societal duties were non purposefully for the Obuasi community, but for the company itself. This is because the Anglo-gold school merely admits dependants of workers and does non give chance to other kids in the community. This is an unfortunate state of affairs and is unethical because the company ‘s pollution and waste it disposes affects the whole community. The infirmary besides merely benefits the employees and those that the company has dealingss with.

The company argues that the infirmary besides provides guidance and proving for other community members and besides the instruction giving to the dependants of workers is bend is educating the community because the kids are besides portion of the community. With the theories discussed above and the stakeholder theory, the company position of responsible concern is non truly geared towards the betterment of the society but doing net incomes and the public assistance of its workers merely. It is besides unethical to destruct the land and flora of the community with them non acquiring so much in return. This depicts the current state of affairs of Anglo-gold Ashanti ( Johannesburg ) compared to Obuasi, since 2004 when the two companies merged. The metropolis has had monolithic betterment due to a good CSR towards the metropolis with Obuasi non seeing any major development.


The company has a point when it employs foreign labor because there are non so much skilled forces in the state to manage certain occupation facets but stating that there must be a win-win state of affairs. The community can non merely be enduring whiles aliens will be basking, so there must be intensive preparation of human resource in the state to be able to get the needful accomplishments to take up these places. There should be developing on workss, chemicals and consciousness besides made for people in the community to take part in these preparation plans. There must be the demand for our ain local resources so that most of the machinery used for mining would non be imported. There must be Torahs to assist better the lives of the local people and the society as a whole.

Government should besides play his portion in guaranting the company comply with all regulations and Acts of the Apostless refering the human rights of people in the community.

Finally, companies should see corporate societal as a growing engine and non a signifier of something charitable.

Part B ( SECTION A )


As persons we work with people, interact with them and might differ or hold with them on issues. Conflict direction means seting in topographic point ways that reduces bad facets of struggle and raising the good facets of it at criterions the same or higher than the topographic point where the struggle took topographic point. Additionally, conflict direction seeks to better acquisition and group consequences, that is capableness or public presentation in a concern environment ( Ra him, 2002 ) . Peoples might differ in determination devising because they might hold thoughts of their ain. Conflict may be of import to groups and concerns, when managed good ; it increases group consequences ( Alpert, Osvaldo, & A ; Law, 2000 ; Booker & A ; Jame boy, 2001 ; Ra-him & A ; Bono mom, 1979 ; Kuhn & A ; Poole, 2000 ; Church & A ; Marks, 2001 ) . Part B of this paper is divided into two, subdivision A and B. Section A explains struggle, it ‘s theory and my experience of it at Mining Building and Contractors Ltd ( MBC, Obuasi ) , Ghana and a decision at the terminal. Section B of this paper explains constructing trust, relationships and communications, theories of edifice trust, relationships and communicating every bit good as a personal contemplation on these accomplishments and a decision.

Theory of struggle direction

Conflict is defined as disparity amongst people. It sometimes differs from a little misinterpretation to a win-or-lose or agitated clang ( Kirchoff and Adams, 1982 ) . There are two types of theories under struggle direction.

The traditional theory is centred on the theory that struggle is immoral, is instigated by troublesome people, and should be subdued.

Contemporary theory identifies that conflicts amid people is ineluctable. They can be good to an person and emerge as a natural consequence of alteration and therefore should be managed expeditiously ( Kirchoff and Adams, 1982 ) reflects inception as a device for conveying jointly several ideas and positions into a fresh and changed combination. An environment of tension and ensuing to struggle is hence critical in every concern devoted to emerging or runing with new thought.

Personal contemplation

I worked at MBC Ltd, Obuasi with a co-worker at the Accounts Office. My co-worker ‘s uncle was the Marketing Manager but was n’t in good footings with Mr. Ocloo, the Accountant, who was our foreman. I got to cognize our foreman was person who was truly passionate about his work and disliked lazy and impudent people. I built a strong relationship with my foreman and ever listened to and esteem his positions. My foreman observed my co-worker most of the clip losing at the office, this continued for a few hebdomads. My co-worker had been sing his uncle during periods which there were no work at the office. One twenty-four hours I returned from an errand to happen out my co-worker had had a confrontation with our foreman because of his uninterrupted absence during working hours. He besides had reported the instance to his uncle who had come and exchanged words with our foreman and had worsened the state of affairs. I rapidly called my co-worker and spoke to him about the manner our foreman had observed him for a long period before voicing out his defeat. I recommended to him outdoors apologising to our foreman. I besides advised him to travel back to his uncle ‘s office to quiet him down. I so ensured he explained things to his uncle and admit it was his mistake to do peace. I subsequently talked to my foreman for hours explicating that, my co-worker was at mistake but he truly left when we had finished with our work. I wanted to do certain the instance does non intensify to higher degrees and wanted it solved that twenty-four hours. It was n’t easy because we had to remain behind after office hours when everyone had left to decide the issue. Both my co-worker and his uncle came back with my co-worker apologizing and admiting the error that brought about the struggle. I helped work out the solution because it would hold truly developed into a existent confusion which would hold brought other parties and subjects into the affair.


Every twenty-four hours we work with people, who might wrong us or rub us in a manner. I personally think struggle is ineluctable but can be managed. At the workplace persons should ever be thoughtful and ever seek to negociate with fellow workers to decide struggles. Workers must be sensitive to the feelings of other workers and understand that persons may respond to anger, fright and defeat. Workers should supply feasible solutions to jobs amongst themselves. Mangers should place and analyze the ground for struggle to understand the root cause of struggle. Any solution for deciding the issue should be aimed at making off with the root cause. Directors need to hold good communicating accomplishments to be able to sympathize with all the concerned parties and set across their solutions convincingly. Conflicts should be resolved in a healthy manner without favoring any person ; all parties involved should be treated with regard and spoken to courteously. Pull offing struggle efficaciously is valuable in the advancement of an organisation.

Section 2


Presents, concerns are looking for ways to assist keep trust, construct good relationships and get communicating accomplishments in assisting them achieve growing in their workplace. Trust is explained as the status of readiness for an interaction with something or person without protection ( Duane C. Tway, Jr.,1994 ) . Trust, relationships and communicating at the workplace is really indispensable to the success of a concern and well-being of people at work. Trust is seen by others as tantamount to trustworthiness, explicating trust in the topic of single traits that stimulate positive outlooks on other persons behalf ( e.g. , Butler & A ; Cantrell, 1984 ; McKnight et al. , 1998 ) .Organisational relationships can be grouped into maps, sections and squads ; brotherhood, staff and the direction. These relationships are influenced by how people separately treat each other in the workplace, hypertext transfer protocol: // ( Accessed on 03/12/12 ) . Culture of trust is good in disorganised and unsure topographic points, ( Bjerke, 1999 ) .

Theories of Building Trust, Relationships & A ; Communication

Trust is the “ expectancy by an person, group, or a concern of moral activities, that is, ethically true judgements and ways built upon principled values of examination in favor of another individual, group, or concern in a common attempt or monetary dealing. This account highlights the significance of trust in private and workplace relationships, Hosmer ( 1995 ) .

Trust gives manner to developing a relationship more effectual between the settlor and legal guardian ( Blau, 1964 ) .

Jarvenpaa and Leidner ( 1998 ) explained that a really fast trust can non be maintained if there is n’t consecutive communicating. As a consequence, Swift trust is of import but does n’t vouch a state of affairs for communicating of trustiness.

( Meyerson, Weick, & A ; Kramer, 1996 ) explain communicating of trustiness as a joint manner of commanding and directing peoples behaviors and ways in their interplay with each other, and that finally shows the standard trust that exists between them.

Personal Contemplation

When I started work at MBC Ltd, ( Obuasi ) , the first thing I did was to larn and rapidly accommodate to the organizational behavior and civilization. The following thing was to win the trust of fellow workers and construct good communicating degrees and relationships with them. I was low, obedient and was ever eager to work. I became more involved in issues of workers in the company. This made me my foreman front-runner and made him sometimes go to the extent of discoursing his personal issues with me. I had already won his trust and had built a vibrant relationship with him. As a new worker of the company, it was non done overnight but through difficult work I was able to accomplish it. If I saw workers non in good footings at work, I will rapidly seek to turn to it. I will hold a conversation with the people involved and if it was still non working, I will seek a higher authorization. I ever made certain that no party felt betrayed or offended but it was ever a win-win instance. I besides kept private information from others confidential. When we had finished with work and the topographic point seemed deadening I would propose a group meeting where we thrived on issues to be addressed at the office. We did this at least two times and truly helped us a batch and ever brought the best in us. I suggested this to fellow workers but did non work at start because some directors did non hold with the thought. Gradually involvement for it grew and the company now holds a particular meeting one time every month where selected workers from assorted sections portion positions and discourse jobs confronting them to directors. This truly improved communicating and enhanced good relationships and trust in the organisation.


Communication, trust and relationships can be improved in all workplaces, no affair the size of the company. The footing of an person ‘s interaction in the workplace is through these accomplishments. These accomplishments are really of import and should be amalgamated into squad edifice in every organisation. Persons should be encouraged to halt engaging in activities that will cut down trust bing between workers. Workshops and meetings should be organized to fix and educate workers on developing good communicating accomplishments and furthering healthy relationships among themselves. It is ne’er easy to affect or fulfill everyone at the workplace because we are human but we must besides cognize that it takes a batch of attempt to repair a broken relationship or trust that existed between workers than to forestall it from go oning. If any company wants to travel from being merely a working group to a high executing one these accomplishments must be taking earnestly. None of us is perfect but we can be much more effectual and efficient if we work on edifice good dealingss, holding easy and simple communicating systems and being trusty. This will animate and act upon others to assist construct a successful concern environment.

Bibliography for Part A

Berle, A. A. 1931. Corporate powers as powers in trust. Harvard Law Review, 44: 1049-1074.

Bowen, H. R. 1953. Social duties of the man of affairs. New York: Harper & A ; Row.

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Davis, K. 1973. The instance for and against concern premise of societal duties. Academy of Management Journal, 16: 312-322.

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Bibliography for Part B

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Meyerson, D. , Weick, K. E. , & A ; Kramer, R. M. 1996. Swift trust and impermanent groups. In R. M.Kramer ( Ed. ) , Trust in organisations: Frontiers of theory and research: 166-196. Thousand Oaks, CA: Sage.

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