CSR is an important inspection for stakeholders in the field of corporate ethics. Corporate
Social Responsibility (CSR) is a “self-regulating business model that helps a company be
socially accountable- to itself, its stakeholders, and to the public” (Fernando, 2020). If a
company actively integrate CSR into their companies, it is expected that these companies will be
aware of the impact that the operations of their business have on society in terms of social,
economic, political, and environmental aspects as well as others. CSR’s purpose is to help
organizations to enhance society and not just to operate. The ideal outcome of using CSR would
, be that a company would become self-aware and better the environment they work in among any
and all aspects.
It is typical to breakdown the impacts of CSR into three separate categories. Pragmatic
reason, or the theory of how an organization or company can use its power in society in a
responsible way. If the company does not use pragmatic reason, they will risk losing their
company (Trevino & Nelson, 2014). Ethical reasoning is the obligation and requirement of an
organization to do the right thing ethically for both their stakeholders and society (Trevino &
Nelson, 2014). The last of the categories is strategic reasoning. Strategic reasoning is the
understanding or reasoning that businesses and consumers depend on each other and will benefit
each other in society by providing services and goods, but also with things like bringing jobs to
the area (Trevino & Nelson, 2014).
Primary and Secondary Stakeholders
To make a useful CSR it is essential that both primary and secondary stake holders are
identified when assessing the company’s ethical footprint in order to successfully implement
paradigm toys. Without identifying both primary and secondary stakeholders, a CSR cannot
properly identify ethical impacts. They also cannot get insights for how they can improve as a
company to engage with the environment around them with society.
For paradigm toys, the primary stakeholders will be the individuals or parties who are
directly affected by decisions or actions made by the organization. In the case of Paradigm toys,
this would be the employees, the customers and people who have invested or hold a financial
stake, and primary stakeholders in the company.
The secondary stakeholders of Paradigm Toys are people who are not directly financially
invested or related to the company’s activities and operations, but they will be indirectly affected
by the company’s choices in some way. This group would be parties or individuals and can be a
vast number of people such as law makers or other government bodies or officials, vendors,
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