Theories And Frameworks Of Csr

Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a company to operate in an economic, social and environmentally sustainable manner.

Traditionally the business objectives of business were to maximise profits, sustainability, and shareholders’ value but after the advancement of stakeholder theory there has been a radical shift in the business objectives towards meeting stakeholders’ expectations in addition to maximisation of profit. Typical stakeholders of a company except shareholders are customers, employees, and suppliers. Today modern business objectives are to meet expectations of stakeholders as much as possible. Corporate social responsibility has emerged as a phenomenon that is born out of stakeholder theory.

The stakeholder theory made popular by Ed Freeman (1984) does seem to represent a major advance over the classical view (Freeman, 1984). It might seem inappropriate to refer to the stakeholder position as neoclassical. Bowie (1991: 56-66) has defined stakeholders as a group whose existence was necessary for the survival of the firm--stockholders, employees, customers, suppliers, the local community, and managers themselves.

Corporate social responsibility (CSR) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism that has business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered stakeholders. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines

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 Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications Author(s): Thomas Donaldson and Lee E. Preston Source: The Academy of Management Review, Vol. 20, No. 1 (Jan., 1995), pp. 65-91 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/258887 Accessed: 20/04/2010 23:08

First, Without the stakeholder theory of the firm there is no corporate social responsibility and vice versa, because business cannot exist without society and society is not sustainable without business. According to R. Edward Freeman 1984, the stakeholder theory of the firm is about a conceptualised thought of how a firm works and creates value (youtube video). So, in order for us to understand what the stakeholder theory of the firm is about first the components of the theory should be defined. Stakeholders are groups or individuals who affect or are affected by the operations and or decisions of the organisation and contribute or are a necessity to the success or failure of the organisation. Stakeholders can be owners, managers, suppliers, employees, communities, financiers, government, non-profit bodies and customers even sometimes competitors (Freeman). Next, a firm is an establishment or a number of establishments that buy,

Currently, the stakeholder theory has been grown up from its origin and seen as the concept of Value Maximization in the business firm. It is one of the important goals of the business organization (Werther & Chandler, 2005). In the present time, stakeholder theory allows the business firms to define the role and responsibility of

Given their influential position and the enormous impact of business organizations in modern society, the purpose they should serve is discussed by theorists in various fields. The stakeholder theory of the firm is probably the most popular and influential theory to emerging the CSR area (Stark, 1994). The stakeholder perspective argues that the interests and values of all parties that hold a stake in the organization should be taken into consideration (De Wit &Meyer, 2002), Carroll (1989) the word `stake´ refers to having “an interest or a share in an undertaking”. While the term stakeholder was first recorded in the 1960s, the theoretical approach was in the main developed and presented by Freeman (1984) in the 1980s. Several authors (Carroll, 1989; Harrison & St John, 1994; Rhenman, 1967) define stakeholders as individuals or groups who in some way affect or are affected by the organization. Lee (2006) and Smith (2003) say that most firms understand the importance of managing relations with key stakeholders. Firms that have been successful in this area have done more than simply issuing press releases and responding to

As has been mentioned earlier, stakeholders are those groups in society that are connected to the corporation's activities, but not necessarily owns the corporation. Within the concept of stakeholder management the main aim

CSR ARE A COMPANY’S FRAMEWORK WITH EXPECTATIONS AND DEMANDS OF STAKEHOLDERS-NOT ONLY CUSTOMERS AND INVESTOR, BUT SUPPLIERS, EMPLOYEES AND SOCIETY ( BEAL, 2013)

While this variability will inevitably exist, I propose that CSR can generally be defined as voluntary practices through which corporations, businesses and organizations utilize their own resources and power to benefit society, the community, the environment, social causes

INTRODUCTIONThe introduction of the concept of stakeholder theory can be traced back in the 1960s (Stoney and Winstanley, 2001),however the concept gained grounds with the publication of Freeman’s (1984) book, Strategic Management: A Stakeholder Approach. Till now most writers with stakeholders as a central theme have shown numerous theoretical and empirical studies about this concept (Donaldson and Preston, 1995). The concept about stakeholders in an organisation is very paramount, however, far too less work have been shown to consolidate and implement the study, that can help the realistic use of stakeholder management in our contemporary firms (Donaldson and Preston, 1995). This essay strive to critically evaluate how stakeholder management can have impact on business and management practices and decision making. In answering this question, this paper will attempt to air the view of other relevant articles or authors to solidify, yet a demonstrative approach to successfully manage stakeholder relations. HOW TO IDENTIFY A STAKEHOLDER AND IT’S IMPORTANCEThe first issue under stakeholder management is to identify your stakeholders, in short, who are the relevant stakeholders in an organisation?…..ref.. (Mitchell et al., 1997) in their previous work has identified stakeholders in different and various ways, nevertheless, Freeman (1984, p. 46): has given a well noticed definition for as “A stakeholder in an organisation is (by definition) any group or individual who can

During the workshop, I learnt how to define CSR. CSR can be defined using the CSR pyramid by Carroll in 1979. “Corporate social responsibility encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations at a given point in time” (Carroll, 1979). Those include economic responsibility, legal responsibility, ethical responsibility and philanthropic responsibility which make up the levels of analysis. Economic sustainability is the foundation of the CSR pyramid; it suggests that business require to make profit but also satisfy the needs of the customers and consumers. (Carroll A. , 1911) The second responsibility is legal responsibility; it suggests that the business should follow the law and regulation by the government (Carroll A. , 1911). The third responsibility is ethical responsibility; this suggests that businesses should not only imposed by law but what is expected from the society as a whole. For example, the oil company Shell “the decision of the government was reversed for disposing of oil platform after a campaign and disagreement by the society and public.” (Dudovskiy, 2012). The last

This reverts us back to the development of a stakeholder theory that gradually gained its speed in the 1970s . It soon found its implementation in Freeman’s management discipline , who promoted the expansion of firms’ accountability towards a broader range of stakeholders.