Do corporate social responsibility (CSR) reports provide shareholders Essay - 7

Do corporate mixer accountability (CSR) reports provide shareholders and stakeholders with useful information on corporate soci - Essay ExampleThe gaining momentum of CSR activities is spare from the fact that many mergers and acquisition dealings are also viewing investments in much(prenominal) activities as a factor for consideration prior to finalising the deal. Despite such(prenominal) growth in the time value of CSR activities, the head word as to why managers find it important to undertake these activities and whether there is any need for engaging in these activities apart from maintain good public image (Font et al., 2012). There are multitude of problems in the calling world which include accounting frauds and corporate irregularities and graver concerns like environmental issues and social obligations. In this regard, the newspaper publisher discusses the importance of utilisation of companies in a socially responsible behaviour and also illustrates reasons behind non engagement of few organizations in the same. The paper discusses evidence of non compliance and lack of belief in CSR initiative in firms and concludes in discussion of relevance of such CSR initiatives in todays world. Importance of Engaging in a Socially Responsible Behaviour CSR reporting that are now being mandated in firms by various controlling bodies are an attempt to legalise the concerns demarcation use while making it assent with various environmental, social and ethical issues. It is argued that voluntary as well as compulsory CSR reporting ensures warring advantage of firms over those who do not engage in CSR reporting (Mahoney et al., 2013). The melamine contamination movement of China was a shock for the entire world. It highlighted the need for investors to respond to a corporate social responsibility of companies towards its consumers. It is argued that a firms financial performance has direct bearing with consumer buying and selling activities and such immo ral behaviours drop sales by drastic measures. In the similar way, the case of Coca dummy and Cadbury contamination brought forth an alarming situation of quality standards and norms that were practiced within the company. These events tarnished the brand name to such large extent that it required years to gain back reputation and hence sales. Hence it is unfavourable to understand the direct linkage between CSR performance and financial results (Kong, 2012). The importance of engaging in CSR activities hind end also be studied in light of most important financial decisions like a merger and how it impacts the decision and impact on shareholders during such events (Deng, Kang & Low, 2013). In meet of shareholders value maximisation in engaging in a merger, the role of CSR activity has been explained as a practice building action among the stakeholders (Jo & Harjoto, 2011). This argument thus establishes that high socially responsible firms have greater support of shareholders a nd stakeholders which in turn contribute towards firm profitability and long term efficiency in compare to firms that maintain somewhat weak socially responsible image (Jensen, 2001). Evidence of dismissal of view of CSR incarnate governance requires that companies make their activities more transparent, their activities more accountable and their business more socially responsibly. It is argued that companies engage in business ethics, corporate governance and social responsibility merely to gain legitimacy in business activities and they do not really care about what possible impacts these could have on their business activity (Brennan & Merkl-Davies, 2013). According to views of Milton Friedman, social