Thames Water Case Study Essay Example | Topics and Well Written Essays - 1750 words - 1

Thames Water Case Study - Essay Example As regards the second, Thames’ decision to let employees go and its failure to keep wages stable in real terms, means that it does not regard its employees as stakeholders. Thames is failing to uphold both its corporate social responsibility and to define employees as stakeholders is not a sustainable situation. Certainly, the company is reporting profits at the moment, probably due to the fact that there is no substitute threat to their product but, in the long-run, the company will loose out and its profits will decline. It is extremely important that Thames redefine its employees as primary stakeholders and, directly connected to this, adopt a corporate social responsibility framework. Through a review of the theory on employees as stakeholders and the relation of corporate social responsibility to the stated, this research shall illustrate that there is an immediate connection between corporate social responsibility and the acceptance and treatment of employees as stakeholders, on the one hand, and between these two and corporate success on the other. Corporate social responsibility refers to the level of an organizations involvement in the improvement of the quality of life of its community, and its acceptance of the fact that it has an important role in improving quality of life (Margolis and Walsh, 2003). Even though there is no precise definition for quality of community life,’ since it is dependent on many factors, such as socio-political climate, the state of the economy, the type of industry attempting to identify the problems, and location of the business, among others, the fact is that it refers to the degree to which an organisation gives back to the community and regards itself as part of the community (Carroll, 1999; Margolis and Walsh, 2003). Corporate social responsibility is founded upon an organisation’s understanding of the social issues which