The Nature Of Corporate Social Responsibility

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 2013, the American Insurance Company AIG, American International Group was ranked the worst company in corporate social responsibility for the fifth consecutive year (Orwell, 2014). Known for its exorbitant executive salaries, “golden parachutes”, and lavish management perks during the infamous financial bailouts of 2009, AIG still struggles to regain consumer confidence (Orwell, 2014). Multiple corporations grapple with how to meet the ethical standards of corporate social responsibility in today’s global economy. Becoming a triple bottom line company would help a business meet its ethical obligations and demonstrate its sustainability progress to stakeholders. Employing utilitarian theory of ethics to exam triple bottom

A combination of recent changed to the world scene and pressures from public opinion now requires corporations to take on a new role, social responsibility. Corporate social responsibility is a corporation’s initiative to monitor and ensure compliance with the law, ethical standards, and norms. It can also be defined as corporation’s actions that further social good and go beyond the interests of the firm in order to make the world a better place. Essentially a corporation should embrace the idea of corporate citizenship, the idea that businesses are socially responsible for meeting legal, as well as ethical and economic responsibilities placed on them by shareholders. Although this is an alluring concept, it is also a flawed one. It

Whether CSR costs a company money or earns them money can be a challenging topic to argue. There are many factors that are considered when assessing a company’s long term financial performance and its relationship between the company’s CSR and their revenue. These factors include a company’s CSP (Corporate Social Performance, or the measure of CSR), size, risk taken, economic scaling, and competition. However, there are several additional variables that are commonly forgotten and must be considered when calculating the effect a company’s CSR has on their financial situation. R&D for example has a major impact on a company’s long term economic performance, as it leads to improved knowledge and increased ingenuity on the company’s operations and products. Positive returns on R&D investments can lead to increased shareholder returns and increased profits.

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.

Corporate social responsibility (CSR) is the pledge a business makes where it promises to behave ethically and contribute to economic development while improving the quality of life of workforce and their family as well as the local community (Pride, Hughes, Kapoor 42). This practice helps to form or improve the positive image of the company. Businesses that follow the socially responsible model consider the impact of the company’s actions on society. This also includes promoting and supporting local, national and global causes, which is a part of CSR called corporate philanthropy, where businesses donate some of their profits or resources to charities (Taylor). Companies that show social responsibility this way must be devoted to doing so on a regular basis, because if don’t follow through with it, your organization may be viewed by the public as dishonest. Many critics of CSR believe that this model reduces the main goal of business, restricts the free market goal of maximizing profit, and also limits the ability to compete in a global marketplace (Pride, Hughes, Kapoor 47). Though critics may believe they are right, CSR gives companies a chance to address social issues caused by business’ and other factors and allows them to be a part

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

As we all know, corporate social responsibility is a discipline in business practices. This is one of the business practice sector that is most demanding and constantly changing sector in business enterprise. Because of these demanding tasks that corporate social responsibility has posed on business, business leaders or stakeholders has been faced with the responsibility of bringing a favorable environment for business activities. The prospect of corporate social responsibility became famous in the 1960s. Many companies have used this term in an unlawful manner to benefit the business responsibility rather than overall business welfare, which it is meant for (Ferrell 2014, pp. 3-17).

Hot debates were arose everywhere in the society about the extent of Corporate Social Responsibility (CSR). Mallen Baker (2004) states that CSR is about how companies manage the business processes to produce an overall positive impact on society. Supporters of CSR claim that Businesses and Corporations are not only about making money especially for big business. They should show social responsibility, moral standard and city spirits to the community. They should give something back to the society. Critics argue that Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners by

The research conclusion of the relevance between corporate social responsibility and corporate economic performance is not similar. They can be mainly divided into three views. One view is that company’s social obligation has a negative relevance with the economic performance of companies; another view is that corporate social obligation can cut down transaction expenses, enhance the competitive power and the manufacture efficiency, finally it increases the company 's financial performance. Some literature studies think that there is no relevance between company’s social obligation and its financial obligation or the relationship is nonlinear.

Defining corporate social responsibility or CSR can be as simple as a business that practices benefiting society (Caramela, 2016). Good CSR is one that is constructive to the entire business practices with the community. Sony is a Japanese based electronic store that has ventured to other countries worldwide. They create the newest and latest technology to compete with other competitors and to satisfy their consumer’s curiosity. The company’s mission statement declares, “To be a company that inspires and fulfills your curiosity” (Sony, 2017). With this said, Sony has a variety of interactions with the community as a whole. At Sony, they have an entire website devoted to keeping up with their good CSR practices with the

Supply Chain Responsibility is or at least should be part of a company’s Corporate Social Responsibility (CSR) strategy. CSR is a strategy that managers use to monitor, maintain, and often times improve the environmental and social impacts of their companies as well as how they interact with all of their stakeholders not just the shareholders for which their operations effect. Managers should use their CSR plains to balance the expectations of their often competing stakeholders with their environmental, social, and economic goals. Some fundamental CSR concerns are stakeholder engagement, environmental impact, responsible sourcing of raw materials, standards and working condition of the labor force, social and gender equity as well as good governance and anti-corruption control. CSR approaches focus on what is called a Triple Bottom Line for measurable results. The three measures are profit which is the economic value that a company creates, social which is the how the company treats its labor force and the communities for which it operates in and environmental which is how the company is engaged in the creation and application of sustainable practices that produce reductions or eliminates environmental impacts.

Organizations are expected to actively analyze the impact of their operations on the overall financial and social systems in which they operate. Businesses should know expectations of the society and then manage their behavior and actions to yield results that address those expectations. The implementation of corporate social responsibility plan by an organization is an honor to humanity and nature. CSR discourages organizations from engaging in activities that threaten the life of people affected by its operations. An example is waste management strategies a company puts in place to ensure an appropriate disposal of by-products. Waste materials can pose health dangers such as cancer, contamination of water and food which may result in illnesses or even death of community members.

When analysing corporate social responsibility (CSR) it’s a concepts of business practice which involving initiatives that benefits society that business operating in. In terms of business practices in the financial industry CSR contributes to sustainable development by delivering economic, social and environment benefits for all stakeholders within the company. CSR is a very broad concept where it address many topic such as economic development, human rights and environmental effects. With current issues that happening in the world CSR specially address the economic

Social responsibility is the accountability of companies for the contacts of its results along with actions on civilization and the surroundings, through crystal clear and ethical performance with the purpose of gives to continue progress together with the strength and the benefit of people. The truth so as to the expressions itself has tainted above this point also recommends that the significance qualified to perception for example, corporate social responsibility will maintain to progress in change with business supporting and common improvements. The conception of corporate social responsibility means that every organization have their own responsibilities as well as ethical and moral responsibilities in another sources of earning