Business organizations are expected to exercise CSR (Corporate Social Responsibility), which involves undertaking business activities and using business practices that have benefits to the society. The use of environmentally-friendly methods of production and other business activities is one of the practices that demonstrate that an organization is socially responsible. Being socially responsible implies that a firm does not engage in activities likely to cause harm to the society (Marcandella et al. 138). Therefore, by establishing a new manufacturing plant, the company should not just focus on profit maximization, but should also consider how much the society is likely to lose due to negative externalities associated with the new project.
The new manufacturing plant that the company intends to add is going to accelerate the problem of waste management. This means that the new project is endangering the safety of both the workers in the company besides its cost to the society. We all agree that the current waste management facility in the company is not adequate to handle excess waste. Thus, if at all the company wants to remain socially responsible, it must contemplate improving compliance with environmental regulations without considering how its competitors behave in this respect. An organization that is socially responsible should not be self-focused (Marcandella et al. 142). Instead, it ought also to consider the social need of people outside it. Equity theory argues that fairness should be one of the motives in any business undertaking (Huseman, John, and Edward 228). Therefore, if we identify an inequality with the new plant, we must seek to make adjustments that will favor both our business and the society. This is only possible if we reconsider the environmental impact of the new plant and upgrade our waste management facility accordingly.
Works Cited
Huseman, Richard, John Hatfield, and Edward Miles. "A new perspective on equity theory: The equity sensitivity construct." Academy of management Review 12.2 (1987): 222-234. Web
Marcandella, Elise, et al. "The organizational social responsibility: a framework for the emergence of a new “innovation space” for clusters?." Journal of Innovation Economics & Management 2 (2012): 123-143. Print
