How Corporate Responsibility is Being Adopted by Companies in Relation to Current Market Environment

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Thirdly this paper will provide examples of companies that are not behaving in what can be considered a socially responsible manner, following this argument the case will be presented on a few companies that have not fully adopted a corporate responsibility approach to conducting business. Building on this last point some suggestions will be presented for how these aforementioned companies can, in fact, improve their business model to incorporate some aspects of corporate responsibility.To answer the question of what is corporate responsibility one must take into consideration the broadness of its definition. According to Industry Canada (2010), there is no universal definition of corporate responsibility, but in its broadest sense, it is a business activity that incorporates economic, social as well as environmental imperatives as part of their activities. So by extension, we could conclude that corporate responsibility is any business model that emphasizes social as well as environmental imperatives on par with legal and financial obligations. Furthermore, Industry Canada also postulated that corporate social responsibility also should incorporate policies that encourage innovation to combat societal and environmental challenges through the collaboration of internal and external stakeholders.Why this might be important in our current economic climate is if we take into consideration the subprime mortgage market as well as the credit default swap market and how that seriously negatively affected the economy. In the case of credit default swaps, it was argued by Phillips (2008) that the mere presence of these financial instruments and the near-total lack of regulation on there use helped make the financial crisis worse by slowing down the collapse of major firms such as Lehman Brothers. In this circumstance, one finds a double blow towards corporate irresponsibility insofar as by using a questionable financial tool not only had negative social consequences but also had long term financial repercussions.