Nonprofit-Business Partnerships as a Means of Implementing CSR Essay

Nonprofit-Business Partnerships as a Means of Implementing CSR - Essay Example As a result, there is always the danger that an organization’s CSR model might either focus too profoundly on one cause or interest group while alienating another. It therefore follows that organizations are actively looking for alternative methods of implementing CSR into their business plans. Partnerships between business firms and non-profit organizations is one method of implementing CSR with little difficulty and without the problems associated with the cost and challenges implicit in implementing CSR so that it is integrated into existing business plans. Partnerships between business firms and non-profit organizations or causes are increasingly becoming methods by which business entities are implementing CSR (Seitanidi & Crane, 2009). This paper explores and analyses the nature of nonprofit business partnerships and explains why it can be a successful and effective method for businesses to implement CSR. The first part of this paper examines and analyses traditional CRS models within the corporate governance constructs of a company. The second part of this paper analyses the conceptual basis of nonprofit business partnerships and demonstrated how it can be used to successfully use by a company to discharge its CSR agenda and thus represent the successful implementation of CSR. Traditional CSR as a Part of Corporate Governance Shareholder maximisation theory dictates that business organizations exist for the mere purpose of maximising profits for the benefit of their shareholders. However, corporate scandals and collapses have turned attention toward the issue of satisfactory corporate governance, accountability, transparency and trust. Although maximising shareholder value remains a significant objective for businesses worldwide, an intensification of social activism and renewed expectations have turned attention toward the manner in which corporations conduct their respective businesses (Jamali, Safieddine & Rabbath, 2008). Stakeholder theory has been making gains in corporate governance reflecting the perception that corporations are no longer viewed solely as â€Å"mere contributors to the global economy†, instead, corporations are expected to: Reconcile and skilfully balance multiple bottom lines and manage the interests of multiple stakeholders (Jamali, Safieddine & Rabbath, 2008, p. 444). Increasingly, corporations are compelled to adopt corporate governance strategies that implement accountability, ethics, fairness and transparency in all of their business operations. While implementing CSR in corporate governance strategies, corporations are expected to generate profits (Jamali et. al., 2008). Freeman (1984) argued that corporations and all business entities regardless of size and value are required to ensure that business decisions are consistent with the interests of various stakeholders both inside the business and outside of the business. Thus stakeholder theory of corporate governance is just as relevant, if not more so, than shareholder value maximization theory. The emphasis on stakeholder theory marks a dramatic shift in corporate governance models. Previously, corporate governance was viewed as a technique utilized for specifying the regulations of a corporation’s business decisions relative to how the internal organs of the business operatio