The Theoretical Foundations Of Csr And Corporate Citizenship

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.

Even though customers are a major key to success of any business, limiting CSR practices to an external group of stakeholder is insufficient. From the customers’ side, the focus is “on the corporate brand and its societal relationships with external constituencies.” (Lacey, Hensel 316). It is undeniable that implementation of CSR can attract the customers and lead them to be a significant are source of a financial gain. That is because CSR changes the way consumers behave in the market and alter their beliefs toward the company standards.” (Lacey, Hensel 316). Nevertheless, extensive focus on the social gains may cause the business to suffer financially. If that happened, the case is considered to be a failure of executing CSR. Again, this is a result of shifting all the business gears to benefit a sole group the stakeholders.

Corporate Social responsibility (CSR) has been viewed in different ways by different school of thoughts; some see it has a voluntary initiative, while others think it’s a main part of every company’s structure and even an opportunity to improve brand. For this work, we would take the position of the later argument. It is simply giving back to the environment that you gain from. It involves protection of the environment, development of quality of the occupants of the environment and improving their quality of life. Like Barnard (1938), it is analyzing the social, economic, moral, legal and physical aspects of the environment.

The theory is if they are in good standings, it can benefit them in many ways. One way is that consumers are more willing to purchase from a company after information of their CSR is out and can see that it is an ethical company (Mcguire, Sundgren, Schneeweis, 1988). Low social responsibility, on the other hand, may encourage some stakeholders to doubt the ability of a firm to honor implicit claims and may increase the number of a firm’s more costly explicit claims. Moreover, Bowman and Haire suggest that stakeholders and stock and bondholders see CSR as correlating to management skill. The theory is that reputation is an investment and through positive CSR, financial performance will increase accordingly. However, there have been various arguments regarding the relationship between a firm’s social responsibility and its performance outcome (Sankar, 2001).

From a business perspective, researchers often argue that Corporate Social Responsibility (CSR) can improve the competitiveness of a company and that the CSR activities develop a favourable corporate image and their financial performance (Burke & Logsdon 1996). CSR is defined as the obligation of organisation management to make decisions and take actions that will enhance the welfare and interests of society as well as the organisation (Samson & Daft 2009). Some say that the significance of social responsibility has been changed up until today in that CSR activity may not achieve the intended effects and therefore believes that only one social responsibility exists; to use its resources and engage in activities designed to increase its

The welfare of the community as well as the employees within a company is what Corporate Social Responsibility (CSR) focuses on. It plays a huge role within the society. In this report, we touch on all the various aspects CSR starting with its history(its origin in the fifties), focusing on Bowen, Davis and Carroll’s evolving concepts as it developed over the decades to the current global implication. The briefing on the assumptions of CSR deals with the common beliefs in business practices and our opinions on how corporations’ would react to these assumptions. By analyzing its pros and cons, we discuss the impact of incorporating CSR into a business model.

Through the implementation of CSR, to create social and environmental benefits, from improving operational effectiveness, companies ultimately hope whilst increasing their opportunities to also increase their profits. If companies make known to their consumers of their enhanced operation of the social and environment areas from the introduction of CSR this can increase their profits. Consumers prefer to use companies that think about the environment. More and more people are becoming aware of the environment

The concept of CSR (corporate social responsibility), has been around for many years, it has continued to grow in significance and importance. Moreover, there has been a public debate and commentary on the same subject. For instance, (International Journal of Corporate Social Responsibility) argues that CSR has had social-political influence i.e. the political regime, culture and legal systems of many countries around the globe. More companies around the globe in are engaging themselves in CSR activities, as a result, providing more information on social and environmental issues to the mass. According to (Burritt and Schaltegger, 2010; Gurvitish and Sidorova, 2012), in the past, research that considers both CSR reporting and activity has

Referring to a quotation by (Solomon 1993) “there is a contradiction between an endogenous ability to profit and the company’s distribution to society”. It is worth noting that CSR implementation and activities come with costs on it. The argument against the implementation and practice of CSR by organisations most times points to the cost impact. CSR by an organisation will increase operating costs, which

Corporate Social Responsibility (CSR) is defined by Carroll as being split into four possibilities,”it is economically profitable, law abiding, ethical and Philanthropic” (Visser. W, 2005). Economic responsibilities is defined as being for profit purposes, managers focus is purely on the outcome of the business and the shareholders, there is

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.

Majority of businesses believed that CSR can improve firm’s profitability and value. Companies can enhance accountability and transparency through CSR. This may lead to improve the reputation of companies among investors so the businesses can gain investment capital more easily (Kielmas, 2011). Edwards’s (2011) mentioned that Image Microsystems (IM) is an example of company that can increase

Thought out some wonderful benefits such as increasing the prestige of businesses around the world, attracting many talents to increase profits and having credibility from the society through the right moral behavior. We now see the irreplaceable importance of corporate social resonsibility. And in that sense, the implementation of CSR becomes a strategic element that is oriented in the development of

CSR can improve the company’s reputation and branding and this in turn improves the prospects for the company to be more effective to attract new customers and increase market share.

In this report, the concept of corporate social responsibility (CSR) is discussed from the viewpoint of suppliers, customers and society. It is generally defined as the commitment of business to contribute to sustainable economic development by working with employees, their families and local communities (World Business Council for Sustainable