Management Decision-Making in an Organization

Management Decision-Making in an Organization

According to Chumarina & Abulkhanova (2020), corporate social responsibility includes promoting responsible business practices that benefit society and the business and contribute to environmentally sustainable social and economic development by maximizing the business’s positive impact on society and minimizing its negative impact on the environment. Managers play a significant role in supporting Corporate Social Responsibility initiatives by making decisions that put the well-being of society before profits. For example, managers can decide to create a diversity and inclusion policy to create opportunities for people from different backgrounds in the community to reduce poverty and unemployment. A manager may also decide to engage the community in the company’s operations by allowing community members to volunteer within the company.

Various organizations have proven that a company can prioritize corporate social responsibility over profitability. One of the companies that have prioritized decisions surrounding CSR over shareholder value is Ben & Jerry’s. The company practices corporate social responsibility by applying fair trade in its sourcing methods, using sustainable packaging, advocating for environmental and social causes, engaging the community, and engaging employees (Yadav, 2023). The company also invests in its employees by providing competitive benefits and professional development and supporting employee activism and volunteerism. The company’s involvement in advocating for environmental and social causes includes advocating for issues such as marriage equality, racial justice, and climate change.

Although CSR can help a company create a good reputation that can be leveraged to attract and retain customers, it is important to balance CSR decisions when they may conflict with financial outcomes. This can be achieved by ensuring that the CSR decisions positively contribute to shareholder value indirectly or indirectly. For instance, an organization can ensure that a CSR decision, such as offering employees professional development, focuses on equipping employees with the competencies required to be productive and increase organizational performance, even though it may force the company to incur costs that reduce profitability.

 References

Chumarina, G. R., & Abulkhanova, G. A. (2020). Corporate Social Responsibility Management. International Journal of Financial Research, 12(1), 270. https://doi.org/10.5430/ijfr.v12n1p270

Yadav, D. (2023, March 15). Socially responsible practices of Ben & Jerry’s. LinkedIn. https://www.linkedin.com/pulse/socially-responsible-practices-ben-jerrys-divya-yadav

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How managers make decisions supporting Corporate Social Responsibility initiatives even if it conflicts with growth or profitability measures.
Include an example of where a major organization has prioritized decisions surrounding CSR over shareholder value. Also, speak to your own personal belief on how to balance CSR decisions when they may conflict with financial outcomes. Use APA format, including in-text citations and references.