‘Corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large’. World Business Council for Sustainable Development (2000). Simply, it describes how business decisions and activities are impacted to operate in an economic, environmental and social manner. ‘Recent years have witnessed a growing interest in corporate social responsibility and in calling corporations to account for their impact on the environment and on non-shareholding stakeholders’ Solomon (2013). However with this growing interest, there has also been an increase in the issues facing
According to Moir (2001) who quotes Wood (1991), the fundamental idea of corporate social responsibility is that business and society are not distinct entities but instead interwoven. Additionally, Bremner (1994) opines that the pressure for those who prosper financially to be socially “responsible” has deep historical roots in most cultures and religions. As such, business enterprises have been anchored not only in the desire to solely make profit but also in a broader aim to build “the good society” by attending to the welfare of employees and actively partaking in public life (Hall, 1997; Parkes, Scully & Anson, 2010). Conversely, Aaron (2011) attributes this to the recent ‘corporate enthusiasm’ for CSR which seems to give the impression that companies are genuinely interested in improving the lives of people in communities in which they operate. Arguing that while in some cases it may be true that CSR has proved beneficial to target communities, it also appears that CSR is driven not so much by philanthropic considerations as the profit-maximising calculations of business, implying that corporations are involved in altruistic gestures only if it makes sense business wise (Aaron, 2011).
It appeals to customer’s conscience. The company’s image as a brand is boosted as well as market for its products. A weak government combined with a dedicated CSR activity from corporate would result in social appeal and more power going into the hands of corporate. This would be a highly unbalancing factor as it would lead to company’s vested interest over common good. Therefore governments should take charge and responsibility of CSR and corporate should remain points of business and not points of power.
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 CSR (Corporate Social Responsibility) standard is always problematic to define. As an approach to manage the variation between organizational behaviors, social values, and community’s expectations, CSR works a tool for strategic issues management. It also becomes a theoretical basis for a company to develop a harmonious relationship with the community (Community Development). Therefore, CSR is the moral responsibility that a company has to conduct for its strategic stakeholders, especially for the community around the operational areas. It is the commitment of a company to account for the impact of its operation in social, economic, and environmental dimensions (Achda, 2006).
The companies can use this money to invest in new stocks and equipment. Economic responsibility is when companies are encouraged to make profits but they have to abide to some rule and regulations which include the health and safety of employees. Ethical responsibility is more about the transparency of the company where fair wages are being paid and they are environmentally friendly. Legal responsibility consist of human rights and workers’ rights. It also follow the law of trades and sales .And lastly, discretionary responsibility includes in giving money as charity, educational help, working to fight poverty and disease around the
Recently, promoting human welfare and increasing positive impacts on society have been accepted as core of business operations by most companies. This kind of corporate activities are included in Corporate Social Responsibility model. In increasingly competitive world organizations and companies face with the demand for profitability and responsibility. Thereby, they use some strategic philanthropic actions for meeting this demand. These actions are gathered under the idea of Corporate Philanthropy which is the foremost part of Corporate Social Responsibility model, created for both the corporation’s benefit and welfare of society.
Introduction Corporate social responsibility (CSR) is defined as the social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that a society has of organizations at a given point in time (Carroll, 1979) CSR refers to the corporate initiative to assess and take responsibility to operate in an economic, social and environmentally sustainable manner. When companies take effects on the environment and impact on social and they do so transparently, it helps them succeed, in particular through encouraging value creation and social welfare. The importance of corporate social responsibility reporting in today 's business markets is rising, Increased stakeholder pressure requiring companies to be transparent
Introduction Corporate Social Responsibility is fast becoming an integral part of the corporate world. Broadly defined, Corporate Social Responsibility attempts to achieve commercial success in ways that honour ethical values and respect people, communities, and the natural environment (Bhattacharya & Sen, 2004). With an increasing number of business engaging in CSR activities, corporate social responsibility is considered as a commitment by these organizations. To implement CSR, a business has to consider its impacts on employees, the consumers, the community and the environment. There is a commitment that companies are socially responsible in making profits and contributing to some aspects of social development.
These days, it’s not enough to produce an excellent product or deliver a remarkable service; people also want to be aware if they’re doing business with a company that cares about its effect on its surroundings and is interested in doing the right thing for society it functions in. Today’s consumers hold the companies to a very high standard and continuously look for more than just material products or quality services when choosing a company to work with. To put it simply, consumers expect companies to not only make a profit, but also operate responsibly to address social and environmental issues. Typically, a company’s CSR programs include a corporate giving and volunteer program, environmentally sound practices or business practices designed