Do corporate social responsibility (CSR) reports provide shareholders Essay - 2

Do corporate social responsibility (CSR) reports provide shareholders and stakeholders with useful information on corporate soci - Essay Example Similarly, disclosure of the information related to these CSR activities have become an important part of the CSR activities of the organizations. Importance of CSR Reports This trend has made its mark due to the lack of reliance on the information which is voluntarily given out by the companies as compared to the real contribution to the society. From the perspectives of academics, there is an accepted theory which widely discusses the reasons which motivates the companies to disclose their CSR information. Majority of the information provided in the CSR reports were previously considered to be the decisions or activities belonging to the private domain of these organizations. The theoretical explanation states that the organizations provide CSR performance related information to general public for satisfying their primary needs and portraying themselves as very responsible members of the society. This legitimacy enables the organizations in pursuing the primary purpose of attaining sustainable profitability which is the most important goal of all the business activities. Although the corporate sector provides huge economic benefits to the society, yet there is an increasing concern regarding the abuse or wastage in terms of utilization of the resources of the society. The society provides higher benefits to the corporate sector. It is due to this reason that it possesses the right to seek information related to the return that these organizations are providing to the society. In brief, the increasing public awareness of the public resources decides the legitimacy of the companies, thereby increasing the requirement of disclosure of CSR information in the community. CSR Reports: Providing Useful Information to the Stakeholders The term ‘corporate social responsibility’ revolves around a number of issues concerning the organizations and their interactions with the society. These issues cover governance, ethics and various other social activities li ke, community development, philanthropy, product safety, human rights, equal opportunities to all employees and other environmental activities. Consideration of the CSR activities, from the aspect of accounting, has necessary linkages with the social reporting (Brennan and Merkl-Davies, 2013). The disclosure related to social and environmental responsibilities of the organizations increase the importance of CSR reports. The social and environmental accounting forms an important part of the CSR reports (Mahoney, et al., 2013; Merkl-Davies and Brennan, 2011). The communication of the environmental and social effects of the organizational activities to the stakeholders increases their reliability towards the transparency of their operational activities (Hooghiemstra, 2000). This extends the requirement as well as performance of accountability of all the organizations. Maintenance and presentation of CSR reports have become one of the global initiatives of the governments where they hav e recognized it to be the standard for sustainability reporting. It has provided a framework which disclosed much substantial and contextual information, rather than just presenting their financial performances. This framework has also ensured the fact that the organizations provide meaningful and appropriate information to the stakeholde

What Is So-Called Asian Business Model How Well Does The Indian Essay

What Is So-Called Asian Business Model How Well Does The Indian Business System Fit That Model - Essay Example The business model of Asia is also quite dissimilar from other western nations. The Asian business model has progressed through several periods of transformations. Several aspects such as globalization, improvement in information and communication technology, and deregulation along with evolving competition have influenced the business model of Asia (Crown, â€Å"Challenges in Asia†). Thesis Statement The discussion is based on analyzing the different aspects of the Asian business model. The objective of the discussion is to observe how the Indian business system or organizations fit in the Asian business model and to describe one other Asian system which fits the Asian business model either better or worse than India’s business system. What Is So-Called Asian Business Model? Asian business paradigm has developed through three major phases of improvement. In the first phase, i.e. during 1970s to 1980s, Asia used to pursue the features of ‘Japanese Model’ of business. According to that model, organizations tended to follow quality products and operational superiority in business. The Japanese model focused more on business growth rather than earning profit. Lifetime employment was a vital part for that Asian business model. At that period of time, the central elements of this Asian business model were huge investment, large savings and financial growth. These elements were described as success-deriving factors for organizations by the professionals. However, in the third phase, i.e. from 1990s to present day, professionals have highlighted certain systematic deficiencies of the Asian business model, which had resulted in Asian financial crisis in the year 1997. The Asian business model had also resulted in the collapse of several Asian organizations (Delios and Singh 1-20). At this point of time, it is vital to outline the major differences between the Asian business model and the US business model. During the period of 1950s to early 1990s, the Asia business model was associated with the so-called ‘crony capitalism’. Crony capitalism is usually related with strong government participation in business. Thus, it can be observed that close association existed between the government and the organizations in this kind of business model. Such close association was directed through discussion board which was used to organize investment plans. Government assistance to organizations was related with strict performance standards about exports and technical values. In Asian business model, the relationship between business and financial system comprised long-term association between organizations and banks. This aspect had empowered Asian organizations to consider long-run vision in the investment decisions. Thus, organizations were not constrained by the threat of aggressive take-overs. Asian organizations pursued internal business practices which were different from those of Western organizations. For instan ce, Asia business model is related with maintaining loyal association between management and employees. Conducting business in this model is based on interpersonal relationships