Background of Csr

Corporations are encouraged to conduct their activities in an ethically responsible manner, however neither the corporate world nor academia has produced a single – all encompassing definition of corporate social responsibility (CSR). The basic problem is that there are too many self-serving definitions that often lean toward the specific interests of the entities involved (Van Marrewijk, 2003). There has even been a quantitative study conducted on the many definitions of the term (Dahlsrud, 2006).

The purpose of this essay is to research the notion of CSR and uncover its true framework and outline what social responsibility truly means to corporate organisations, and whether it should be seriously considered to be a legitimate addition to the corporate framework of an organisation.

On the other side, as the legal personality of the corporations evolved in the 1800s, enterprises were no longer responsible for serving the public interest. Consequently, any social welfare was symbolic and procured from the economic function of organizations (Banerjee, 2008). Furthermore, it seems that corporations are using CSR strategies as a window to present favorable images and obtain economic benefits. Historically the relationship between revenues and investment in CSR programs is a controversial issue. Furthermore, the power of the economic CSR rhetoric lies in the ability to validate particular ideologies to consolidate the power of larger corporations (Banerjee,

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.

In this article, “The Truth About CSR,” authors Rangan, Chase and Karim stress the importance in aligning a company’s social and environmental activities with its business purpose and values (Rangan, Chase, & Karim, 2015, 41). Outcomes of CSR programs should be a “spillover” and not a primary focus of a business, expressing concern towards social responsibility and corporations failing to contribute to society accordingly (Rangan, Chase, Karim, 2015, 42). There is a great deal of importance in companies refocusing their CSR activities on a primary goal and in providing an organized process for bringing consistency and discipline to CSR strategies (42). Rangan, Chase and Karim want corporations to understand why it is important for them to evaluate their CSR activities and refocus them towards the goal of reinforcing the firm’s societal and environmental actions, while also ensuring their actions add to the overall purpose and values of the corporation. According to the authors, even though

The benefit to business of good Corporate Social Responsibility is difficult to quantify as it varies depending on the nature of the enterprise. Some scholars believe that there is a business justification for CSR. That is, what is good for the environment and society will be good for company profitability. And studies have shown a slightly positive correlation between CSR and financial gain (Steiner and Steiner, 2006). However, as Freidmanism claims, the first responsibility of business is to make enough profit to cover the costs for the future. If this social responsibility is not met, no other responsibilities can be (Hargreaves, 2006). Therefore it is critical that CSR activities are included in strategy formulation and that the level of resources devoted to CSR is determined like any other strategy – through cost/benefit analysis. Corporations will not throw money away…they need to see it

1. It is hard for companies to communicate their efforts in CSR to shareholders and investors. Although companies have progressed from only 20% of public companies publishing CSR reports to 72% from 2011 to 2013, there are still no universal standards established for reporting CSR information. Therefore, even the best CSR efforts can lose their value simply because the efforts are not communicated to users of financial statements. This is also in part due to CSR efforts being ill-defined. While some CSR ideas are universal many of the aspects of CSR are industry specific and hard to translate into meaningful disclosures for interested parties.

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.

Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue

In this essay, we will discuss why organizations began CSR and how it is or can be or why should it be implemented. CSR usually get started off either as an integral part of the business strategy or corporate identity, or it can be used as a defensive policy, with the latter being used more often by companies targeted

Crane, A. and Matten, D. (2010) ‘Corporate social responsibility’, (3rd edition) Business Ethics. Oxford: Oxford university press, pp.51-60

However, modern theory known as corporate social responsibility (CSR), has complicated the situation in that stating that companies are not only responsible to its shareholders, but also to the stakeholders which its actions may impact (Freeman 1984). While this may seem to contradict the mantra of profit maximisation, Russo and Perrini (2010) suggest that in today’s conscience-minded society, success is based not only on maximising profit but also on a corporation’s stakeholder relationships, which include social and environmental issues.

Historical background of the development of CSR is almost as important as the ongoing discussion on what CSR is and how and where it should operate. Many scholars argue that these are not interchangeable and need to be assessed in conjunction with each other. For purposes of this paper it is pivotal to look into the past to see what stood behind the broadening of companies’ accountability beyond the standard agency theory (limited liability of shareholders for the company’s violations or breach and the company’s main accountability being towards its shareholders and investors only) to the stakeholder theory (company’s accountability towards a broad range of stakeholders, including employees, environment and local communities).

The above discussion has shown the importance of corporate social responsibility for a company. There are many challenges which multinational firms face while fulfilling their corporate social responsibilities especially in developing countries. Griffin and Pustay (2007) assert that CSR requires engagement with internal and external stakeholders so it enables enterprises to anticipate better and take advantage of fast-changing expectations in society as well as operating conditions. This means it can also act as a driver for the development of new markets and create real opportunities for growth (Van Tulder and Kolk 2001).

The importance and eminence of Corporate Social Responsibility (CSR) across the business world started to increase during 1998-2007. Role conflicts often arise when competing demands like business goals and social goals are in question. The increase in the sense of social responsibility,stakeholder pressures and concerns for the environment has heightened the focus of businesses on CSR. A business that fulfils its CSR sufficiently can expect an improvement in its financial performance,enhanced brand reputation, a reduction in its operating costs,long term sustainability, a boost in staff commitment,innovation and production,better risk management,good relations with its stakeholders and development of closer links with customers. However,in today 's world CSR is not being dealt with serious and proper attention hindering the success of businesses.Business ethics concern the study of proper trading policies and practices regarding potentially controversial issues.They are guided by law and are based on a certain scheme that businesses should follow in order to gain public approval and be successful.CSR embraces responsibility for the behaviour of companies and motivates them to have a positive contribution and impact