The CSR concept in the US has been defined in terms of a philanthropic model. Such model illustrates the unhindered generation of profits of the companies and the donation of a particular percentage of the profit to charitable causes. While the philanthropic approach to CSR is an important measure to increase the capacity of its stakeholders, it is not considered as a positive contribution to the society.
The Boston College Center for Corporate Citizenship (BCCC) has conducted a global survey on CSR. An interesting aspect of the study is directed into learning the best way for corporations to provide a positive contribution to society. Findings reflect that the most appropriate form is developing healthier, safer products/services, actively working to solve a specific social issue. Donating money to charities ranked the lowest among the perceived ways to impart a positive contribution. Thus, while the corporation has been providing significant financial contributions to the University Oregon, such act remains far from being sustainable and as Nike has efficiently demonstrated, can be easily retracted.
A principle-based approach to CSR should be adapted by Nike, Inc. Unlike its previous CSR strategies, Nike’s CSR initiatives must be sustainable and should be viewed as an essential aspect of the process of wealth creation. Abiding by the principles of CSR will allow Nike to earn the trust of its stakeholders, enabling the company to maximize the value of investments in the CSR field.
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