Satisfying stakeholders may be useful to build an organisation's competitiveness. Competitive advance contentions argue that, by embracing certain CSR activities, a firm might have the capacity to build strong relationships with its stakeholders and gather their support at lower levels of employee turnover, access to higher talent pool, and client loyalty. CSR activities may exhibit opportunities for a firm that would enable it to satisfy the needs of its stakeholders and in the simultaneously pursue its profits. The quest for these opportunities is conceivable through CSR activities (Carroll and Shabana,
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).
In recent years CSR has become a fundamental business practice and has gained much consideration from chief executives, chairmen, boards of directors and management teams of larger international and national companies. They understand that a strong CSR program is an essential aspect in achieving good business practices and successful leadership. Companies have determined that their impact on the economic, social and environmental backdrop directly affects their relationships with stakeholders, in particular investors, employees, customers, business partners, governments and communities. CSR encourages a vision of business accountability to a wide range of stakeholders, as well shareholders and investors. The key areas of apprehension in CSR are environmental protection and the well-being of employees, community and civil society in general, both now and in the future.
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. (
The social responsibilities of a corporation contribute to the sustainable development of a global village. CSR has also been signified throughout history of Asia. Stakeholders who are affected by the way a business is run have been placing emphasis on how business should be run in order to maintain, or even raise a company’s reputation. For those reasons, it has become essential for scholars to start looking into CSR of businesses that have foundation in Asia. In the initial phase of CSR’s development, scholars focused more exclusively on North America and Europe as the standard form of Corporate Social
The role of stakeholders has increased in this period to attempt the importance in the CSR debate due to support pf academic leaders such as as Peter Drucker .He believed that while management’s role is to make profit he believed that it is much important that they consider the consequence and effect of their business on society. (Joyner & Payne 2002, p. 302).In 1957 it was the first time where the concept of CSR was implemented proactively in business with
It has firmly been committed to Philanthropy and accomplished what many consumers have wanted. It has provided educational, global and its safety use. The bottom-line benefits of CSR in businesses is decreasing the cost and risks, gaining competitive advantage as well as developing, keeping its legitimacy and its reputation (Carroll & Shabana, 2011). The six business reasons why companies should engage to corporate social responsibility is because of its innovation, cost savings, brand differentiation, long-term thinking, customer engagement and employee engagement (Forbes.com, 2012). Innovation is a huge benefit to the businesses and society.
WHEN CORPORATE SOCIAL RESPONSIBILITY POSITIVELY OR NEGATIVELY INFLUENCE THE CONSUMER ATTITUDE AND BEHAVIOR Introduction The quick enhance of corporate social responsibility (CSR) practices in many firms, a problem about the way in employee attitudes and behaviors has become critical. Nowadays, corporations devote their resources to corporate social responsibility (CSR) presuming that “doing good always leads to doing better” (Sen & Bhattacharya, 2001). There is a growing belief that CSR is a source of competitive advantage for the firms (Hart, 1995; Shrivastava, 1995) because it enhances firms’ reputation which results in favorable behaviors of different stakeholder groups such as employees, community and particularly consumers (Brown &
ABSTRACT Corporate Social Responsibility (CSR) is a management concept where the companies strive to do good for the society, more than what the law demands. While the term is not new, the way CSR is viewed has been gradually evolving. What was once considered a waste of capital, is now being used to venture into international markets, create trust amongst stakeholders, strengthen the brand and ensure sustainable development. CSR is distinct from philanthropy, charity or sponsorship since it helps the company with more than just reduction of poverty or protecting the environment. These companies aim to achieve sustainable global development by following a more comprehensive set of working objectives than just profit alone.