The Corporate Stake in Social Cohesion

Corporate Social Responsibility (CSR) is a function that transcends, but includes, making profits, creating jobs, and producing goods and services. The effectiveness with which corporations perform this function determines their contribution (or lack of contribution) to social cohesion. This article therefore presents a discussion of some of the social cohesion issues involving corporations, particularly concerns over how corporations make profits, create jobs, hire, promote, fire, treat shareholders, run their boards, and give back to the communities in which they function. Most of these functions depend on the quality of corporate governance, which in turn has implications for social cohesion. The article begins with a discussion of the concept of CSR. Then it presents an identification and discussion of some corporate behaviors that promote CSR in the following areas: governance; employment practices; and involvement in communities, environmental protection, and ethical investment. In conclusion, successful business strategy that contributes to social cohesion in society is that which fosters integrity in internal governance while promoting positive engagement in communities in which corporations operate.