Csr Theories

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.

The issue of corporate social responsibility has recently been the subject of much debate. These debates pose the question “What responsibilities, if any, do corporations have to society and the greater good?” From a legal standpoint the answer to that question is none. Legally, corporations have no responsibility to participate in any type of social responsibility, in fact, doing so is illegal and can lead to directors and corporate officers being sued by shareholders. Although the specific law varies from jurisdiction to jurisdiction, the general idea is always the same, corporations are only responsible for making the greatest profits for their shareholders. For example, In Maine, Section 716 of the business corporation act reads in part: ”The directors and officers of a corporation shall exercise their powers and discharge their duties with a view to the interests of the corporation and the shareholders.” (qtd. In The Humanist). The opposition to these viewpoints believe however that the action of corporate executives participating in social responsibility will in fact not only benefit the community and the general public, but in the long run, the corporation itself along with its shareholders. Many believe, as do I, that as a society we are more likely to engage in business with corporations who give back to its consumers and who concern themselves with the betterment of our society and the world as a whole, and in turn the result for these corporations is larger

Corporate social responsibility, or CSR, has been conceptualized rather broadly as the managerial obligation to take action to protect and improve both the welfare of society as a whole and the interest of organizations. In recent years, corporate social responsibility has been becoming increasingly important and is held

Snider, Hill and Martin. (2003) stated that “ CSR may be defined in general terms as "the obligation of the firm to use its resources in ways to benefit society, through committed participation as a member of society, taking into account the society at large and improving welfare of society at large independent of direct gains of the company" (as cited in Kok et al., 2001, p. 288). Since the growth of the corporations depend on the societal factors, corporations should be responsible for the society for the corporation’s own benefit in the long run. “The Corporate Social Responsibility (CSR) construct describes the relationship between business and the larger society” (Snider et al., 2003). According to The Wall Street Journal (2013),

The Corporate Social Responsibility (CSR) originated in 19537 with the publication of Bowen’s book Social Responsibilities of Businessmen (Carrol, 1999). Some perceived that at that time, the emphasis is placed on business people’s social conscience, rather than on the company itself. Some argue that corporate entities do not have any social responsibility except the ones that were written in agreement with government while establishing corporate entities, whereas others justify that corporate entities do have social responsibility. The roots of critics of CSR are so old that it is a challenge to the neoclassical business model itself (Valor, 2005). According to Smith (2005), there

Corporate social responsibility (CSR), has been the centre of debate since the last decade, with the increase in technology and globalization, company policies have come under a lot of scrutiny. Although this issue is not relatively new but with the hype of increasing media coverage and in the wake of high profile corporate scandals (Enron, WorldCom) the emphasis has mounted (Huczynski and Buchanan, 2013). Organizations play a vital and ever so increasing role in the lives of people, other organizations and the wider community in general (Mullins, 2013). Hence it is the responsibility of these organizations to act in such a manner that accommodates the wider society. In 1970, economist Milton Friedman once argued “the business of business

Controversy exists as to whether companies have a duty to recognize and fulfill their corporate social responsibility (CSR), or whether it is sufficient for them to discharge their business functions while complying with the law. The opponents of CSR argue that managers are custodians of shareholders' wealth and should only engage in business functions that they are qualified in, leaving social functions to be performed by the government. However, CSR has now become a strategic part of business activity because it enables companies to gain legitimacy and approval of the community to ensure their survival, while contributing towards profitability.

The notion of Corporate Social Responsibility is a phenomenon globally known for many years. In spite of the fact that CSR has been neglected for quite a long time, nowadays several authors deal with this issue, as revealed by the development of theories in recent years concerning the topic. In spite of the fact that there has been a huge growth of literature it is still impossible to simply define CSR. Many definitions trying to capture the concept of CSR exist, but their content varies (Matten & Moon, 2008).

Corporate Social Responsibility (CSR) is a concept whereby organizations consider the wellbeing of the public by taking responsibility for the effect of their actions on all stakeholders; customers, employees, shareholders, communities and the environment in every aspect of their operations. This responsibility is seen to extend beyond the statutory obligation to comply with legislation and sees organizations willingly undertaking additional steps to improve the quality of life for employees and their families as well as for the local community and society at large.

Corporate social responsibility, often abbreviated as ‘CSR’ is an approach taken by corporate companies of different purposes of the welfare of their workers, customers and as well as paying attention to ecological maintainability and responsible advertising. The term ‘CSR’ started becoming popular since World War II and has been a subject of major debate over whether a firm should solely aim for making profits or also consider giving back to its society, therefore, corporate social responsibility should be voluntarily embraced rather than being enforced. This essay focuses on the positive and adverse effects of corporate social responsibility on the companies as well as its importance for the society.

Corporate Social Responsibility (CSR), a concept that has been around for well over 50 years, has become prominent again recently. Peter Utting (2005) notes that an increasing number of transnational corporations (TNCs) and large domestic companies, supported by business and industry associations, are adopting a variety of so-called voluntary CSR initiatives that incorporate, for example, ‘codes of conduct; measures to improve environmental management systems and occupational health and safety; company ‘triple bottom line’ reporting on financial, social, and environmental aspects; participation in certification and labeling schemes; dialogue with stakeholders and partnerships with NGOs and UN agencies; and increased support for community development projects and programes’. The revival of CSR is reflected also in its recent prominence in public debate. CSR has also generated a very extensive literature in recent times. For example, a search on Google Scholar for the phrase ‘corporate social responsibility’ produced 12,500 citations. A more general search of the internet on Google for the phrase ‘corporate social responsibility’ produced 12,900,000 results. A general search for the phrase ‘corporate social responsibility’ on Australian sites produced 97,800 hits. This research paper is a conceptual paper regarding CSR consists the introduction, historical background of CSR, arguments

Many social scientists and economists like Friedman (1917 NYT article); Visser (2010) and Karnani (2011) have been looking at the arguments for and against ‘Corporate Social Responsibility’. There are many different definitions of CSR but the idea behind it is that businesses contribute to the well being of society, as well as sustainable development by delivering environmental, economic and social benefits to society, not just economic benefits to the shareholders.

Long before H.R Bowen, in his book ‘Social Responsibilities of the Businessman’ propounded Corporate Social Responsibility as a desirable directive for prosperous companies; it has been long practised as a mode of charity and philanthropy as advocated by various religious and family values. The concept of CSR since then have been intricately connected with the values of good governance which aims to usher a socially inclusive positive society which focuses on addressing cultural impediments, social issues and environmental sustainability. As proposed by the United Nations Environment Programme, companies should be ethically responsible and should strive