Archie Carroll: Social Responsiveness

Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.

According to World Business Council for Sustainable Development, “Corporate social responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large”. A social responsible company may be defined as a company which integrates and takes in active parts the social and environmental concerns of one’s community and society. Acting in a socially responsible manner is more then just an ethical duty for a company nowadays, it is something that essentially has long term interest in both the company and the community. The motive is to produce economic value for the company but as well for the society as

Corporate Social responsibility (CSR) has been viewed in different ways by different school of thoughts; some see it has a voluntary initiative, while others think it’s a main part of every company’s structure and even an opportunity to improve brand. For this work, we would take the position of the later argument. It is simply giving back to the environment that you gain from. It involves protection of the environment, development of quality of the occupants of the environment and improving their quality of life. Like Barnard (1938), it is analyzing the social, economic, moral, legal and physical aspects of the environment.

The article “Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility” by Michael E. Porter and Mark E. Kramer advocates that there is a link between corporate social responsibility (CSR) and competitive advantage, and there is an opportunity for innovation that benefits both the company and society that can result in a win-win positive sum game. Ultimately if your firm does not integrate a CSR program into your business core your competitors will.

CSR lacks universal methods. The United Nations Industrial Development Organization (UNIDO) mentions that it is important to draw a distinction between CSR as part of strategic business management concept and charity, sponsorships or philanthropy. The latter applications make valuable social impacts that enhance the reputations of the companies, however, CSR is a continual effort instead of an instance. A few features that CSR should focus on are: eco-efficiency, employee and community relations, environmental management, gender balance, responsible souring, anti-corruption, stakeholder engagement and human rights. Utilizing some of these key features a company can bring competitive advantages into the market place. Increased sales and profits from operational cost savings as well as improved reputation and brand image and customer loyalty can result from a well-defined CSR strategy.

Managers in today’s corporations have to deal with government regulations, corporate critics, media attacks & major competition from other firms (Freeman, 2010). According to Carroll (1991) Corporate Social Responsibility consists of four elements, which are in the form of a pyramid consisting of philanthropic at the top of the pyramid followed by legal, social & economic responsibility towards the bottom of the company. Furthermore stakeholder management is a very important contributing component of a successful business & the support of stakeholders can be gained through customer loyalty, cooperation with partners, investment

Corporate Social Responsibility (CSR) – is a set of commitments, corresponding to the specificity and level of development of the company, whish is reviewed regularly and dynamically changing. CSR is voluntarily and agreed with the participation of key stakeholders, taken by the company’s management, with particular reference to the views of staff and shareholders. It is performed in mainly at the expense of the company and aimed at the realization of significant internal and external social programs, the results of which contribute to the development of the company (production growth, improving the quality of

Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions. “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson 15). This paper will discuss the concept of corporate social responsibility. It will give the definition of the phrase, and identify some of the global factors that necessitate corporate social responsibility. It will discuss the importance of corporations setting up corporate social responsibility projects, and the impact these have on society. Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.

Many firms’ corporate social responsibility (CSR) efforts are counterproductive, for two reasons: They pit business against society, when the two are actually interdependent. And they pressure companies to think of CSR in generic ways, instead of crafting social initiatives appropriate to their individual strategies. CSR can be much more than just a cost, constraint, or charitable deed. Approached strategically, it generates opportunity, innovation, and competitive advantage for corporations—while solving pressing social problems. How to practice strategic CSR? Porter and Kramer advise pioneering innovations in your

Social responsibility is another integral component of a strategic plan. It is essential to integrate corporate social responsibility within the daily operations of an organization. By doing so, it helps ensure that the organization is moving toward the constant development and better interest of the general public by attempting to reduce any potential negative impacts of its overall operations. As such, corporate social responsibility is an integral method of gaining a competitive advantage through the enhancement of its corporate image through the perspective of the stakeholders and general public. Knowing this, more and more organizations are allocating additional resources in an attempt to strengthen their commitment to society. This is commonly demonstrated in the reduction of environmental pollution or assisting in providing financial resources for various social causes

The importance of corporate social responsibility to companies has been widely debated. Companies eager for maximizing the profit with limited cost. Facing the complexity economic environment and growing competition, as well as the short-term performance pressures from shareholders, companies have no idea but force to restructure the business, reduce the labor force and relocate the business to lower-cost regions. However, are they really helpful to maintain the competitive advantages and gain the sustainable profit? Michael Porter and Mark Kramer, in their January/ February 2011 Harvard Business Review article - Creating Shared Value (CSV) explains what a growing companies have come to recognize - companies can derive a

On the other hand, CSR is an attractive feature of a company when recruiting employees. Montgomery and Ramus (2007) show that MBAs from leading American and European business schools take aspects of CSR such as environmental substantiality and ethical corporation behavior into consideration when choosing which companies to work for. Over 90 percent of the students interviewed were willing to forgo monetary benefits in order to work for socially responsible corporates (Montgomery & Ramus, 2007). A firm with a reputation for CSR and ethnics also enjoys a competitive advantage in attracting senior managers (Turban & Greening, 1997). The positive effect of CSR on employer attractiveness saves the time and cost to recruit and train new workers.

With the spread of social marketing and CSR in the world, organizations tend to not only consider the consumers’ demands and the companies’ profit, but also take the consumers’ and societies’ long-term benefit into account. Hildebrand,D,et,al (2011) demonstrated that the CSR activities can make up the central, special and core characteristics of the company identity, the identification of the corporate can also be aroused due to CSR activities. Moreover, Porter and Kramer (2006) highlighted that CSR can aid companies create the ability to achieve corporate resource so as to build a sustainable and defensible competitive position. So the companies should consciously undertake corporate social responsibility.

In this effort to create a sustainable and profitable organization, it is possible that corporate social responsibility (CSR) strategies are developed and employed by the organization without CSR itself being the original motivator. In other words, sustainability can be the main motivator for organizations to establish CSR strategies. In doing this, it is possible that they are actually participating in corporate social irresponsibility (CSI). This paper will look at whether an

In Pakistan, many companies are focusing on improving and increasing their corporate social activities in order to provide benefits and welfare to the human beings and to fully fulfill the responsibilities while living in the society at large. The corporate social responsibility and related activities have an immense impact on the organization behavior and also influence the individuals’