Why Has Corporate Social Responsibility Become Such a Prominent Part of the Business World Today?

1977 Words Dec 22nd, 2012 8 Pages
Why has Corporate Social Responsibility become such a prominent part of the business world today?

It is widely believed that Corporate Social Responsibility (CSR) is one of the most important tasks in the twenty century. Some people may consider that companies have always been the profit organizations, and social affairs are in charge by the government, which is a common sense that there are no directly relationships between each other. However, CSR is considered one of the key elements to sustain companies to vary their original operation levels. In this essay, I attempt to outline the different definitions of Corporate Social Responsibility and evaluate the reasons why CSR became a prominent part of the business world by actual
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This way, CSR will directly influence on the company’s decision-making, and make it a managerial obligation. Secondly, a political perspective defines corporations as quasi-governmental actors, and there are three modes’ corporation have to implement: Substitution, Supplementation, and Compensation (Aßla¨nder, 2011: 120). First, corporate engagement as the substitute for governmental activities, this means that corporations offer services between
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governmental or private sectors such as private schools, endowed hospitals. Second, supplementing governmental activities with corporate activities, this could be illustrated as the case that corporations support money or services with governmental projects when governments would like to extend the original governmental services; for instance, to donate to existing cultural activities. Third, compensating for a lack in government services, this could be demonstrated by the case that the former government services are suspended, and corporations provide the financial support to maintain the cut-off projects, such as basic provision of civil infrastructure. As a result, the differences among corporate duties, governmental obligations and societal responsibilities require a political perspective to determine. (Aßla¨nder, 2011: 120)

A case study in CSR is the Swiss pharmaceutical company called Novartis, which declared its responsibility as “right to health” which adhered with Article 25 of the
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