Corporate Social Responsibility (CSR) has gained its importance as an essential activity for corporate nationally and internationally. It has become a matter of utmost importance for diverse groups demanding change in the business orientation. From 1980 to 2000, corporations recognized and started accepting a responsibility towards society. CSR implies some sort of commitment, through corporate policies and action. This operational view of CSR is reflected in a firm's social performance, which can be assessed by how a firm manages its societal relationships, its social impact and the outcomes of its CSR policies and actions.12 The term ‘corporate social performance’ was first coined by Sethi (1975), expanded by Carroll (1979), and then refined
Though the writing is based on the CSR in Western Europe but it gives an introductory idea about how CSR works with different institutional environment. According to Jackson - Corporate social responsibility (CSR) is often seen as a strategic response to pressure from stakeholders who may be adversely affected by company practices, or as a pro-active attempt by firms to pre-empt or at least mitigate these pressures and enhance the reputation and value of the corporation. Much research has aimed to establish the business case for CSR by examining its relationship with economic performance. Parallel to these efforts, other literature has focused on the moral and ethical justifications for CSR independent of its potential economic utility. (
There are large amounts being invested in Corporate Social Responsibility (CSR) to ensure that a firm is relevant within the market. This trend is one where companies will try and create a positive impact on the society while they still conduct their business. Studies have shown that a company’s long term financial success goes hand in hand with its participation in social responsibility, corporate ethics and environmental stewardship, (Kell, 2014) . Corporate Social Responsibility can be defined as the continuous commitment by businesses to behave ethically and contribute to development of the economy while keeping in line the objective of improving the quality of life of the workforce, their families and the local community and extend this
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
2.1 Literature Review Corporate Social Responsibility (CSR) practice has gradually becoming a hot topic in corporate world and empirical studies of CSP and Corporate Financial Performance (CFP) started over decades ago and the conclusion have been mixed. Numerous studies have been carried out on the relationship between CSR and CFP resulting in three different potential results: negative link, no link, and positive link. According to Rajput, Batra, & Pathak (2012) the past studies on CSR resulting in three different groups which the first group supports CSR and claims that it give positive results to the company’s profitability, second group is neutral and claims that CSR give no impact to the company’s profitability and third group claims
Profit-Oriented or Socially Responsible? 2 Corporate Social Responsibility (CSR) plays a crucial role in organizations and societies. Traditionally, CSR is a management concept that has been implemented by most of the listed companies around the world. CSR is implemented by companies to be responsible for the company’s consequences on the environment and social welfare in their business operations and interactions with their stakeholders (Unido, n.d). In the other words, CSR is a program that benefits both society and business that do not provide immediate financial benefit to the company but environmental change and positive social (Investopedia,
CSR literature is still lacking commonly accepted definition of Corporate Social Responsibility (Carroll, 1991; Garriga & Melé, 2004; T.M. Jones, 1995; Kakabadse, Kakabadse, & Rozuel, 2007; McWilliams & Siegel, 2001). According to the well known and widely cited definition of CSR, “the social responsibility of business encompasses the financial, lawful, principled and unrestricted hope that society has of organizations at a given point of time” (Carroll, 1979, p. 500). In nastiness of the growing consequence of CSR, the literature still lacks its commonly accepted definition (Carroll, 1991; Garriga & Melé, 2004). Some scholars (Matten & Crane, 2005; McIntosh, Thomas, Leipziger, & Coleman, 2002) do not endorse Carroll’s interpretation of CSR.
Table of Contents Miji Kim Patrick Klocek Extended Essay January 19th, 2018 To what extent has globalization impacted Corporate Social Responsibility in Asia? Corporate Social Responsibility, or so called “CSR,” can be defined as a corporation’s initiatives to assess and take responsibility for the company’s effects on environmental and social wellbeing. (Staff 2) The concept of CSR is very recent in terms of the entire world; but even more recent in case of Asia. For example, it has only been 8 years since Malaysia and Philippine encouraged requirement of reporting corporate transparency on “environmental issues and social issues.” (Citation will be added here) Corporate Social Responsibility can be distinguished
History of corporate social responsibility Despite the fact that the term of CSR may appear to be relatively new to the corporate world, the literature reveal that the development of the concept itself has taken place over several decades. As for the definition of CSR in the corporate and the academic world there is no single definition regarding all the effort to bring out a clear and unbiased definition. The fact that everything is evolving such as political,
According to Davis, Social Responsibility is a great idea but should be considered in a managerial context. The decade of 1960 was an important decade for Corporate Social Responsibility. Many attempts were made to formalize its meaning and to establish one, unique and accurate definition and many companies started publishing corporate social reports. People were motivated to take into consideration Corporate Social Responsibility and they pushed companies towards social