Csr And Stakeholder Theory

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Corporate Social Responsibility and Stakeholder Theory
The concept of corporate social responsibility as discussed earlier means that organizations not only have responsibilities to earn a fair return for investors and comply with the law, but also have moral, ethical and humanitarian responsibilities. Traditionally, a corporation is viewed bearing its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups, which
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At its simplest level, stakeholder theory has been proposed as an alternative to stockholder-based theories of organizations (Freeman, 1994).
Institutional theory suggests placing CSR explicitly within a wider field of economic governance characterized by different modes, including the market, state regulation and beyond. While CSR measures are often aimed at or utilize markets as a tool, institutional theories of the economy also see markets themselves as being socially embedded within the wider field of social networks, business associations and political rules. In particular, many of the most interesting developments in CSR today play themselves out in a social space of private, but collective forms of self-regulation.
Integrating Business with Society
Mapping Social
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An effective CSR requires an understanding of the social dimensions of the company’s competitive context—the “outside-in” linkages that affect its ability to improve productivity and execute strategy. These can be understood using the diamond framework, which shows how the conditions at a company’s locations
Competitiveness in social context
Successful corporations need a healthy society of productive workforce with education, health care, and equal opportunity. Safe products and working conditions not only attract customers but lower the internal costs of accidents. Efficient utilization of land, water, energy, and other natural resources makes business more productive. Good government, the rule of law, and property rights are essential
Looking Inside Out: Mapping the Social Impact of the Value
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