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Chapter 2
Corporate Social Responsibility
A company’s upholding of social responsibility involves some costs. A business firm is also part of the community. As such, there are specific utilities and services that the company, just like the citizens, require, and that is where the cost in upholding social responsibility is incurred. These are such as roads, sewage systems, protection against fire, and many more. Seeing as they are part of the community, firms are also required to fund these services, and they do so using taxes. The cost of not having corporate responsibility falls back on a firm, in terms of losses. A business organization usually requires some social license for it to operate smoothly within a given area and even attract more consumers. As such, a lack of corporate responsibility may destroy the firm’s brand. A firm can choose to be socially responsible, not because it is profitable or necessary, but because it can. Say, for instance, there is an issue with insecurity in an area, and a company decides to install security measures even if it’s for its sake. That would be the firm’s interests aligning with those of the public.
Chapter 4
Alternative Dispute Resolution
The arbitration involved one party deciding to begin this process of solving a dispute. The party writes to the second involved party to seek an agreement. The stakeholders that benefit most, in this case, are the arbitrators, whether one or a panel seeing as they are paid to resolve the dispute and the party that receives the right end of an arbitration award, whether a consumer or a firm, depending on what that conflict was about. The stakeholders that do not benefit, on the other hand, are one; courts and judges seeing a case don’t reach them anymore, and also the parties seeking this process because they have to spend heavily on the arbitrators.
Between consumers and companies in an arbitration clause, I identify more with consumers. The reason is that I understand that arbitration clauses are bad for consumers in that they prohibit them from filing lawsuits even when they need to. Also, arbitrators can be excessively informal and forego facts and evidence like it is in a courtroom. All these issues and the fact that consumers don’t get representation from a lawyer who could inform them about their rights make it an unfair situation.