The dominant paradigm today, both in corporate management and in business educa- tion, is profit maximization and maximization of the wealth of the owners. But, the obsession with ‘profit at any cost,’ when carried to an extreme, can lead to Enrons, WorldComs, and Parmalats and the shortening of hundreds of thousands of lives in sweat shops. Fortunately, alternatives have appeared that successfully blend concern for profits with humane concerns. Today, virtually, every Fortune 500 company has adopted a code of conduct and put in place the needed management structures and processes to ensure compliance. Similarly, corporate social responsibility has gathered momentum. Spirituality in management, the democratization of the workplace including internal justice systems and ‘good citizenship’ behaviour in the organization, and catering to the needs of all the stakeholders-not just shareholders-are some of the other offshoots of humane corporate management. In a developing country context, in which there are so many battles to be won against poverty and deprivation and in which a society needs to be modernized without losing track of its ethical and spiritual moorings, humane business management is a necessity. In this colloquium, our panel members addressed the following issues: What humane alternatives there are to mindless commercialism and how to manage each alternative without loss of profitability. How to enrich business practices and what we teach in business schools with these new paradigms of management. The salient features of the responses are as follows: The globalization strategy of a few powerful nations has robbed country after country of its right to choose its own path-not only economic but cultural as well-with the new milieu verging on the inhumane. An immense effort is necessary to nourish humane values as the cause and ethical conduct as a consequence. Cooperative enterprises or new workers' enterprises can provide the organiza- tional means whereby a significant proportion of humanity takes on the tasks of creating productive employment and overcoming poverty, thus achieving social integration without placing undue importance on the interests of capital providers. Enduring companies have demonstrated that by simultaneously attending to a variety of stakeholders and focusing on composite goals, rather than profit maximization alone, it is possible to acquire and maintain industry leadership. Firms need to move from a feudal relationship with their business partners to a ‘strategic partnership’ and invest more in hygiene factors and HRD for long-term employee satisfaction, performance, and development. The need is to evolve through dialogue among businessmen, government, and civic society a consensus on what the social responsibility of business is and what are legitimate and illegitimate actions. A larger social conscience can emerge if corporate leaders recognize that they cannot ensure long-term growth without generating sufficient ‘social capital.’ ‘Social capital’ involves the creation of trust, reciprocity, and tolerance of third party actions. There is a bonus from corporate social responsibility, ethicality, and spirituality in terms of stronger staff bonding with the organization and stronger motivation. This can be converted into higher productivity, better product quality, better and faster implementation of the needed changes and innovations.
Stakeholders within the framework of Corporate Social Responsibility: A systematic review