Walmarts Corporate Social Responsibility

While some theories identify that organization’s primary role is to optimize profits, other illustrate that organizations have the responsibility of satisfying all its stakeholders (Weber, 2008). Furthermore, another school of thought claims that mutual benefit results from a positive interaction between stakeholders. From a critical point of view, while corporate social responsibility is an expense to an organization, it is clear that it bears great benefits for business organizations. The essay uses Wal-Mart as a sample case to show the role of stakeholders in a corporate social responsibility strategy and to illustrate its benefit to organizations.
Corporate social responsibility is a topic that has gained a lot of popularity in the contemporary business environment. Various theories show that somehow there exists a strong relationship between all the stakeholders within an organization (Mitchell, Agle, amp. Wood, 1997). Stakeholders are those people who are either direct or indirectly affected by the activities of an organization. From a different dimension, Stakeholders have direct or indirect influence on the activities of the organization. However, there seems to be a heated debate on the real value of corporate social responsibility within an organization. The proponents of the CSR theories indicate that organizations profit from adapting CSR approaches and that ignorance of their stakeholders would be a great cost to the business. On the other hand, a different school thought states that organizations’ primary role is to conduct business in a manner that optimizes profits for the benefits of its shareholders.
Steib (2008) is among the authors who have focused on the issue of corporate social responsibility from a multi-dimension perspective. His first focus is on the theory developed by Freeman on the idea that business has a fiduciary relationship with the stakeholders.