CSR is important for the multinationals to perform in foreign countries because of the growing competition and other challenges that are faced by an organization; the management theory is used as a tool to encounter such challenges ( Ismail, 2009). Donaldson (1989, cited in Secchi, 2007 :359) CSR also acts upon the firms managerial decisions when there are problems such as clashes, protests and strikes, these lay down the moral values, above profit maximization. Managerial theories performance depends on stakeholders trust, co operation and acceptance. Garrige and Mele ( 2004) Detomasi( 2008) were all of a view that social power drives the social responsibility as the corporation is a corporate citizen, who has investment in the community. Davies (1960) stated that CSR is a political power and therefore must be used responsibly as a business is social institution; its power comes from both within and outside.
CSR is first and foremost a cultural change within the company, or even a way to revisit its modes of decision-making and operation, the role and involvement of managers, starting with the first of them, the leader business, will be decisive in the appropriation of the approach by the entire company. To a lesser degree, it is the same for the company's staff who must be convinced and trained from the beginning of the process. Other stakeholders, but also employees, are direct beneficiaries of the company's implementation of CSR. But they are also required to respect a certain mode of conduct in line with the CSR approach in their different interactions with the
2.2 CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility (CSR) or CSR activity is seen as a complex and contested area, which is rapidly gaining importance from businesses all over the world (Vaaland & Heide, 2008). Mintzberg (1983), refers to Elbing (1970) when he states that the concept of social responsibility has been discussed academically by professors, pragmatically by businessmen, politically by public representative and approached from various angles philosophically, psychologically, sociologically, economically even aesthetically. The complexity of the concept has lead to variations of definitions some boarder than others with no consensus on a generally accepted definition. The difficulty with defining CSR sterns from
Thus, it is now being undertaken throughout the globe and increasingly become an important activity to businesses nationally and internationally. (Corporate social, 2004) CSR becomes a fundamental business practice. One of the essential elements to achieve good business practices and effective leadership is strong CSR program. Companies also determine that the relationships with stakeholders both internal and external will be directly affected by their impact on economic, social and environmental landscape. (Corporate social, 2004) In accordance to Estallo, Fuente & Miquela (2007), they claimed that companies can yield higher level of profit with a long term socially responsible behavior and which might become a competitive advantage.
INTRODUCTION The need for established social responsibilities and ethical frameworks in business has become a main priority in our current society. This attitude is supported by the fact that the number of the most well-known global corporations integrating corporate social responsibility (CSR) programs into their business operations has never been greater. The prominence of CSR initiatives today hint that executives’ perceptions of such policies have shifted from an unnecessary addition to a critical business function. India is the first country in the world to mandate Corporate Social Responsibility (CSR) spending, through a statutory provision under the Companies Law 2013 and expects an annual spending of around INR 30,000 Cr by India Inc.
In the recent years more and more companies in the retail and food industry are concerned about the environmental consequences of their action and also the social ethics for the people involved in the production process. This is a shift from the philanthropic actions companies used to take in 1970’s and by following basic international standards to a ‘business case’ perspective of CSR (Customer Social Responsibility). According to the World Business Council for Sustainability Develpoment ( WBCSD) CSR is: ‘’ the commitment of business to contribute to sustainable economic development, working with employees, theirfamilies, the local community and society at large to improve their quality of life’’ (World Bank, 2002) According to TBL (TRIPLE
Corporate Social Responsibility (CSR) initiatives seem to be a business imperative nowadays. In a survey done by McKincey (2009), over 80% of interviewed CFOs claimed that corporate social responsibility is included in their evaluation standards of business projects. And the majority of respondents believed in remarkably positive contributions of CSR to shareholders’ value, especially long term benefits. Apparently, fashion industry has realized this trend as well as a growing demand of socially responsible business behavior from consumer and other stakeholders. For example, H&M has been releasing annual conscious actions & sustainability reports since 2002, in which a wide range of dimensions of CSR initiatives are demonstrated carefully and
The dimensions are voluntariness, stakeholder, social, environmental and economic. From all the above definitions, certain conclusions can be drawn regarding the elements that define corporate social responsibility. It is inferred that while a company’s direct stakeholders are the major target for their CSR activities, the definition is not only limited to these stakeholders but has now also evolved to involve the local communities, as well as society at large. For the purpose of this study, we will take CSR to be those activities of an organization that are specifically intended to have a positive social, economic and environmental impact on
Definition of CSR and a description of what it is. Corporate Social Responsibility is a voluntary initiative taken by a company where they contribute to social, ethical , and environmental issues in society. Also known as “corporate citizenship”, CSR is a continuous commitment of a business to demonstrate ethical and economic activity that benefit the staff, the shareholders, the business, but most of all society. It is when a business takes of time money to make a difference in society. Whether it is to help a certain people or raise awareness for a cause, CSR is done in most businesses and it highly beneficial for the business in many ways.