Corporate Social Responsibility: How Government Regulates Market Movement Research Paper

The corporate responsibility comprises an integral part of the contemporary business development since companies operating in the US as well as international market pay a lot of attention to the development of their corporate social responsibility. The development of effective policies aiming at the support of local communities, provision of employment benefits, or benefits for the environment are just a few manifestations of the corporate social responsibilities. However, the development and introduction of the corporate responsibility is hardly possible without the government support and regulations that encourage companies to conduct social responsible policies. Therefore, the government turns out to be one of the key players in the development of the corporate responsibility because government regulations determine the development of policies conducted by large as well as small corporations in terms of their social responsibility.

Social responsibilities constitute an essential part of the functioning of many companies. In this respect, large companies and multinational corporations are particularly concerned on their social responsibilities. At the same time, the significance of social responsibility of large corporations and goals of contemporary business are often viewed as antagonistic notions since they contradict to each other. Social responsibility is an unnecessary burden for the business. Nevertheless, modern companies have already understood the importance of their social responsibility for the creation of the positive public images of companies and, hence, loyalty of customers.

Basically, there are several categories of social responsibilities. First of all, the main category, which may be viewed as a traditional category of social responsibilities of companies, is the category of the local social responsibilities. This is the employee safety and health category. What is meant here is the fact that companies should take care of their employees and they should provide them with social guarantees, for instance, sponsoring healthcare services their employees and members of their families need. This social responsibility focuses on the company itself and its personnel and helps create a positive organizational atmosphere within the company (Pride et al., 2008). At the same time, social responsibility of a company in relation to its employees contributes to the unification of the company and decreases the risk of the personnel turnover and loss of valuable and prospective employees. In addition, corporations should avoid any kind of discriminations within the organization, including ethnic or gender discrimination. In fact, all employees should have equal opportunities within organizations.

At the same time, nowadays, social responsibilities of companies are not limited by the local level. In fact, it is necessary to mention another category of social responsibilities, social responsibilities that are oriented on the domestic level which is known as the external relations category. To put it more precisely, a company operating on the national market should take social responsibilities for the general social development of the country and society. Therefore, the company should develop social programs which could contribute to the progress of society and which could form a positive public image of the company in the country. In such a way, corporations should develop external relations with their customer as well as local communities at large in order to contribute to the development of their business along with the development of community and employees working in corporations.

Similarly, companies operating on the international market should focus on the international level and develop their social responsibilities on the international level and these social responsibilities constitute another category, which is basically a characteristic of large multinational corporations and it may be defined as corporate philanthropy (Kaliski, 2001a). What is meant here is the fact that social responsibilities of large companies should be oriented on the social assistance in different countries of the world. For instance, social responsibilities of companies on the international level may include the creation of new jobs in developing countries, introduction of higher standards of work in these countries, material support of poverty stricken regions, etc. In fact, large corporations are able to assist to the development of the most deprived regions of the world and their participation in charity as well as educational programs can improve the social situation in these regions worldwide.

At all levels, companies should focus on one more category of social responsibilities which refer to environment. In fact, companies should be responsible in relation to the environment since their environmental policies affect the entire world (Kaliski, 2001b). This is particularly important for companies operating in environmentally unfriendly industries. For instance, companies operating in the oil industry, such as Shell, BP and others should develop environmental programs to compensate the negative impact of their business on the environment since the entire world suffers from their activities.

At the same time, it is necessary to remember about another category of social responsibilities of companies which is employee diversity. In actuality, many companies attempt to avoid any discrimination and employ people with different cultural or ethnic background, regardless their age and gender. In fact, many companies tend to discriminate their employees on the ground of their age, gender, or racial background. Even if such discrimination may be not evident, but employees, who suffer from the unfair treatment from the part of the employer have opportunities to file lawsuits on the ground of the existing legislation and government regulations, including the Equal Employment Opportunity Act, for example (Blanchard & Bowles, 2012). At this point, it is possible to refer to the case of Walmart, which faced several lawsuits filed by female employees, who suffered the payment and promotional discrimination. Walmart conducted the highly conservative policy aiming at the promotion of male employees mainly, especially at the top level. In addition, such discrimination affected the level of payment widening gaps between the level of income of female and male employees of the company. As such discrimination on the ground of gender of employees was illegal, some female employees have filed the lawsuit against the company that was the manifestation of their attempt to force the company to the social responsibility and fair treatment of all employees.

Government regulations may refer to different fields. For example, the government can introduce tax credits for companies conducting environment friendly policies or introducing products and innovations that help to protect environment. In this regard, it is possible to refer to the case of companies involved in the development of alternative sources of energy. The government attempts to stimulate the production of energy generated from renewable sources by means of tax credits and other fiscal policies that help to encourage the investment into renewable sources of energy and development of technologies that help to make those sources available to possibly larger number of people and companies. This is why the development of solar power and wind power become so attractive to companies operating in the energy market. In such a situation, it is just the persisting competition from conventional power plants, which outnumber power plants using alternative sources of energy, that prevents them from the overall success. Nevertheless, such government policies have already brought positive effects as the share of power generated from alternative sources of energy has increased substantially in recent years. Similarly, companies manufacturing electronic devices and other products using electric power have to match quite tough standards concerning the power consumption and energy efficiency. The government attempts to raise energy efficiency level over and over again to force manufacturers to produce products that are more energy efficient and safe for the environment. As energy production is one of the major contributors to the global environment pollution, the reduction of the energy consumption and energy efficiency become priorities for the government. Government regulations make energy efficiency the priority for businesses as well. The introduction of new strict standards helps the government to reduce the consumption of energy and, thus, to minimize the negative impact of the energy production on the environment.

Another example of government regulations that lead to the development of corporate social responsibility is the automotive industry and fuel efficiency of vehicles. In fact, the government introduces very strict regulation concerning CO2 and other greenhouse gas emissions of vehicles (Breneman & Taylor, 2006). These regulations force car manufacturers to introduce new technologies and innovations that reduce greenhouse gas emissions substantially. The government introduces new, stricter standards regularly that lead car manufacturers to the stead reduction of dangerous greenhouse gas emissions and increasing fuel efficiency of their cars. As a result, new cars become more fuel efficient and safer for their environment (Benfari, 1999). In this regard, the government performs the primary role as the driver of technological changes that force car manufacturers to introduce innovations that make their cars more environment friendly because without government regulations car manufacturers would hardly invest into costly environmental technologies because they lead to the increase of the costs of production and price of their cars. Nevertheless, car manufacturers have no other options because, otherwise, they will be unable to operate in the market.
Furthermore, the government enhances the regulation of corporate operations and policies through the enhancement of the employment legislation that help the company to create better employment conditions, for example, by offering their employees health leaves opportunities or health insurance coverage, for example. At this point, it is possible to refer to the case of BP oil drill platform accident in the Mexican Gulf, when the contamination of the natural environment has had a devastating impact on flora, fauna, and life of people as well. The US government has launched legal procedures to prosecute BP, while the company has undertaken steps to settle the case by paying off billions in terms of compensations to restore the natural environment of the Mexican Gulf.  In addition, the government can introduce restrictive regulations through the change of environmental legislation. At this point, it is possible to refer to legislative initiatives, such as the Clean Air Act or Clean Water Act, for example, which restrict the pollution of the natural environment and force corporations to conduct responsible environmental policies.

Thus, the government plays the major part in the development of the corporate social responsibility. Today, companies develop the policy of social responsibility under the government pressure, because the government introduces regulations that force them to conduct policies that are socially responsible. Alternatively, the government stimulates such policies, which companies conduct to gain some financial or other benefits. The corporate social responsibility refers to three major domains, including environment, employment benefits and community support.



Benfari, R. C. (1999). Understanding and changing your management style. San Francisco: Jossey-Bass.

Blanchard, K. & Bowles, S. (2012). Raving fans: A revolutionary approach to customer service. New York: Morrow.

Breneman, D. W., & Taylor, A. L. (eds.). (2006). Strategies for promoting excellence in a time of scarce resources. San Francisco: Jossey-Bass.

Calder, S. (2012). No Frills: The Truth behind the Low Cost Revolution. London: Touchstone.

Gitlow, H. S. (2011). The Deming guide to quality and competitive position. Englewood Cliffs, N.J.: Prentice-Hall.

Kaliski, B. (Ed.). (2001a). “Social Responsibility and Organizational Ethics.” Encyclopedia of Business and Finance. (2nd ed., Vol. 1). New York: Macmillan Reference.

Kaliski, B. (Ed.). (2001b). “Ethics in Management.” Encyclopedia of Business and Finance. (2nd ed., Vol. 1). New York: Macmillan Reference.

Pride, W., Hughes, R., & Kapoor, J. (2008). Business. Boston: Houghton Mifflin Company.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: January 20, 2022]

"The terms offer and acceptance.", 17 May 2016.

[Accessed: January 20, 2022] (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: January 20, 2022]

"The terms offer and acceptance.", 17 May 2016

[Accessed: January 20, 2022]

"The terms offer and acceptance.", 17 May 2016

[Accessed: January 20, 2022]

"The terms offer and acceptance.", 17 May 2016

[Accessed: January 20, 2022]

"The terms offer and acceptance.", 17 May 2016

[Accessed: January 20, 2022]
Haven't found the right essay?
Get an expert to write you the one you need!

Professional writers and researchers


Sources and citation are provided


3 hour delivery