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The social responsibility of corporations: Some aspects of inclusive capitalism

Author: 
Dr. Mrs Kathleen Okafor
Subject Area: 
Social Sciences and Humanities
Abstract: 

Global trade and commerce have brought great economic prosperity for nations as well as serious labour challenges, environmental degradation, pollution, grave economic inequalities and concerns of climate change.1 Business leaders, governments and civil societies, realise the imperative of addressing these challenges in a collaborative and structured way especially as government alone cannot address these socio-economic problems. Thus, companies can undertake philanthropic activities towards the development of society in various facets of endeavour like education, health care provision, poverty alleviation, women empowerment, the environment etc. and still return handsome dividends to shareholders.2 Undoubtedly, corporations need to make profits to innovate, grow, reward investors, attract and retain high skills and plough back etc. Some of the critical questions which managements consider are what is the level of profit required to ensure long-term business continuity and success? Cancompanies improve their performance economically and financially by undertaking their core business in a manner that considers its impact on the broader society? Put differently, can new models of CSR influence profit? Does excessive focus on profits decrease capability of the firm to influence and even manage stakeholders? To what extent does current corporate philanthropy conform with the mandate of companies to operate in the 21st Century? To what extent can courts look at what the states have agreed to do in multilateral and bilateral agreements in connection with national constitutions? This paper attempts to address these questions in a general way and to profer new insights into the international trends of CSR legal framework. Essentially, this paper illustrates how companies have adapted capitalist precepts of pursuit of profit-maximisation to accept inclusive capitalism the latter of which considers the poor in the production processes not just as consumers but as producers and also other stakeholders like the environment and women.

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