The Institutional Theory Of CSR And Management

The term “institution” is commonly applied to customs and behavior patterns important to a society, as same as to particular formal organizations of government and public services. Institutions are structures and mechanism of social order and cooperation governing the behavior of a set

Institutional Paradigms are considers the wide spread effects of social structures such as rules, regulations, or authoritative guidelines shape how the organization looks or acts (Tolbert & Hall, pp. 181). The following essay will outline both the benefits and disadvantages of the Institutional theory, as well as, give a reference on how the institutionalization processes shapes an organizational decision-makers ' choices, and a conclusion of my personal opinion of the theory will be provided.

Structural functionalism is also known to be viewing each institutions, relationships, roles, and norms that relates together into constituting a society serving system. There are two theorists who were major contributors of this sociological perspective. These are Herbert Spencer and Robert Merton

Structural Functionalism aims to understand society in an objective way. It views society as an entity that is “objectively real”. It emphasizes the unity of society, and how individuals perform roles and how these roles are vital in meeting the needs of the collective whole. For instance, because every society has stratification, stratification must have certain functions and these functions can contribute to the survival of the social system as a whole. Furthermore, structural

corporate leadership to “look beyond its traditional bottom line, but at the social implications of its business.”

Corporate Social Responsibility (CSR) is part of the reality of doing business. CSR is also known as corporate science, corporate citizenship or responsible business. CSR is important for both business as well as society. CSR is all about how a company is able to show and manage its positive impact on the society. CSR is able to earn its own name in the world of business.

Philosophers have identified three key perspectives to organization: rational, natural, and open systems. Each of these perspectives include key development for organizational design. They each also exemplify developments of the science of organization. Modern organizational theory can be described as a combination of these three main perspectives (Scott, 2003). This presentation will compare the rational and natural approach with suggestions of restricting to the natural perspective for our current organization.

The external environment is crucial to any company or organization because it allows management to see and understand things outside of their daily routine. The societal environment might focuses on the influence the external environment might have on the company’s strategy. In the long run, it might be beneficial or perhaps unfavorable. The general five forces are economic, technological, political-legal sociocultural, and demographic forces.

Assumptions of Organizational Economics Theory: organizations are superior to markets in managing complex and uncertain economic exchanges because they reduce the cost of transactions; different approaches to organizational economies share a common attention to explaining the emergence and expansion of organizations, hierarchies,

Institutional theory refers to a form of policy that is created with an emphasis on the legal and regulatory framework of government structures (Kraft, 2007). It is a widely adopted theoretical standing that puts emphasis on reasonable myths and legitimacy (Scott, 2008). Institutional theory is made up of two dominant trends; Old institutionalism and new institutionalism. New institutionalism rejects the rational models behind historical economics, instead seeking cultural and cognitive interpretations

Since 1998, Bank of America has become one of the most successful financial institutions in the industry. With the mission to “make financial lives better, through the power of every connection”, Bank of America has maintained aligning operation with its vision. While assisting its clients understand their money, the company also puts a lot of effort into helping the communities by executing Corporate Social Responsibility (CSR). It is undeniable that the company has successfully addressed many critical problems in the environmental, social and economic arenas, as it continually receives awards and recognitions for its CSR efforts.

Organizations are open systems that need careful management to satisfy and balance internal needs and to adapt to environmental circumstances

Corporate Social Responsibility(CSR) is becoming an ever increasing part of business strategy. CSR is an ethical decision made by organisations which looks to make a positive impact on society, to the economy and the environment. This essay will look at TESCO 's use of CSR and assess whether they use it genuinely for the improvement of society or uses it as another means to increase profitability. I will be looking at three of Tesco 's KPI 's; relation with supplier, retention of customers and colleagues satisfaction to work and shop at Tesco, to assess their CSR policy.

Overtime,stakeholder demands for corporate social and environmental responsibility have been greatly increasing."According to Girod and Michael (2003,cited in Jones etal,2007 ) CSR is ‘a key tool to create, develop and sustain differentiated brand names".

An open system approach is that which views an organization as an integration of different parts