Social Responsibilty
...faster than the general market, having increased 41% since 2003, and this trend is expected to continue, although perhaps at a slower rate in the medium term. But, In spite of the rise in popularity of socially responsible funds opponents have argued that by excluding many stocks in a particular sector (for example, resources), such funds will be disadvantaged when these sectors do well. Even when ethical funds perform well, there has been criticism that the positive performance would be short lived”.
Australian Stock Exchange
asx.com 2007
1. What is corporate social responsibility?
In relation to social responsibility, in the corporate sense (relevant to Westpac): corporate social responsibility refers to “the firm’s considerations of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social [and environmental] benefits along with the traditional economic gains which the firm seeks” (Aguilera, 2007).
There are a number of views on the concept of corporate social responsibility, and whether or not is it sustainable for a corporation to uphold social responsibilities in congruence with its economic goals and profit maximisation. Coupled with this ethical and financial decision that faces corporations globally, increasingly, as ‘governments around the world withdraw from operating business enterprises, private sector corporations are increasingly under pressure to take a more active role in society, to be good 'corporate citizens'’ (unisa.edu.au, 2007). It is evident that corporations have had responsibility and pressure exerted upon them in the modern day market, with consumers now increasingly aware of the issue of social responsibility and the emergence of a powerful market in the LOHAS consumer market (which is a market concerned with moral and ethical...
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