The corporate stake in social cohesion

Abstract

Today, there is attention being focused on corporate social responsibility (CSR), a function which transcends, but includes making profits, creation of jobs, and the production of goods and services. It is how well corporations perform this function that determines their influence in social cohesion. This article will therefore discuss some of the social cohesion issues involving corporations, the concerns over how corporations make profits, create jobs, hire, promote and fire, treat shareholders, run their boards, and give back to the communities in which they function. Most of these functions depend on the quality of corporate governance, which in turn has implications for social cohesion. The article begins with a discussion of the concept of CSR. Then it will identify and discuss some corporate behaviors that promote CSR in the following areas: governance; employment practices; involvement in communities; environmental protection; and ethical investment. The paper concludes that successful business strategy that contributes to social cohesion is that which foster integrity in internal governance while promoting positive engagement in communities in which they operate.