Definition of Csr

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Recently, the expectations of society for companies have increased more than before (Craig, Bhattacharya, Vogel and Levine, 2010), so one significant issue that most firms have been actively involved in is Corporate Social Responsibility (CSR). Some may debate that it decreases company’s profits by spending much money on CSR. However, according to Needle (2004), ‘good’ CSR is also good for business, a firm could benefit from doing CSR. Thus, this paper aims to explain its importance. It begins with the definition of CSR and its four responsibilities, then presents how it influences a business and benefits it can bring. Finally, I am going to describe strategic CSR and discuss why firms have social responsibility. …show more content…

Therefore, the best way to perform it is combining CSR and firm’s strategy to be a strategic CSR. Baron (2005, in Craig, Bhattacharya, Vogel and Levine, 2010) presents a definition of strategic CSR: “the use of CSR to capture market value”. It seems to be that companies can acquire competitive advantages and opportunity by regarding CSR as a strategic tool, so they could gain more benefits from strategic CSR.

For instance, Nestlé’s Milk, cooperates with small farmers to produce milk in Moga in India. The company not only taught them technology and professional knowledge but also invested in local infrastructure and education, it improved the quality of milk and the standard of living. Nestlé’s Milk succeeds in integrating CSR with value chain, today Nestlé buy high quality milk from small farmers, and there is an increase of 50 fold in milk production (Porter and Kramer, 2006, p. 90).

Some people believe that the major duty which a company has is making profits and satisfying shareholder’s need. However, companies rely on the contribution of stakeholders rather than shareholders, they have responsibility to render not only shareholders but also stakeholders. In addition, companies are powerful social actors, some corporate activities could make great impacts on society (Crane and Matten, 2004). Furthermore, companies cause some social and environment problems (e.g. air pollution), they have duty to solve those

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