Social responsibility has been defined as a social norm. In this society, companies from the least to the greatest practice Corporate Social Responsibility (CSR). The management and staff of the corporations are expected to perform the right things as their misdeeds may be held accountable. Furthermore, the corporation is required to be responsible for their member‟s behavior. (Seitel, 2003) According to McWilliams, Siegel & Wright (2006), they claimed that although there are numerous definitions of CSR but the given definition is vague and unclear.
Jeremy Moon (2004) defines CSR as a combination of corporate citizenship, sustainable business and environmental responsibility; it is accountable to social, environmental and ethical issues both in term of corporate and the national environment. The neo liberal writers see it as voluntary, but some neo liberal see CSR as an obstruction and diversion from a business primary concern, i.e., profit maximization, yet most neo liberal writers maintain the point of view that, Friedman was actually correct. CSR in the long run can be beneficial to the organizations it prevents from unnecessary government intervention and
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
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 CORPORATE SOCIAL RESPONSIBILITY (CSR) MODEL The best-known CSR model is that of (Carroll, 1979:497-505), which proposes that the social responsibilities of a company are the economic, legal, ethical and philanthropic expectations formed by society. The main area of responsibility is economic, but at the same time the company must keep the law. Ethical responsibility refers to the obligation to behave fairly and honestly. The fourth area is when the entrepreneur conducts him/herself as a good citizen (figure below). The corporate social responsibility pyramid (own compilation based on United Nations Global Compact, 2015) The four responsibility layers together make up corporate social responsibility.
Overlooking negative social and environmental externalities when valuing a company might be equal to ignoring significant tail risk. The risks related to CSR could be grouped into three categories: corporate governance, environmental aspects, and social aspects. Companies that adopt the CSR principles are more transparent and have less risk of bribery and corruption. In addition, they may implement stricter and, thus, more costly quality and environmental controls, but they run less risk of having to recall defective product lines and pay heavy fines for excessive polluting (Palmer, 2012). They also have less risk of negative social events which damage their reputation and cost millions of dollars in information and advertising campaigns.
Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship, social performance, or sustainable responsible business/ Responsible Business) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. In some models, a firm's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law." CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive
CSR does not have a direct impact on a company’s financial performance but it can strengthen reputation and lead to competitive advantage. 4.3 Recommendations and Suggestions To analyse the corporate reputation of a company one has to; Holistically look at the internal and external strategies. Analyse all the elements of corporate reputation that is to say image, identity, identification and communication strategies of the company. More research to authenticate the validity of measures of the corporate story’s relevance, realistic, sustainable and responsive. A link ought to be made between CSR and financial performance.
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
They want firms to supply quality goods and services efficiently in a way that minimizes adverse social or environmental costs.” (Corporate Social Responsibility: Partners for Progress OECD, Paris 2001) Bryan Horrigan underlines that CSR scholarship in the 21st century engages new debates and themes, while also making the transition from 20th century and sometimes even residual 18th and 19th century thinking and practices surrounding corporations. The true multi-disciplinary character of CSR, the reality that greater societal and global problems are addressed by CSR, and new insights into CSR`s deep complexity are all increasingly reflected in scholarly works devoted to the wide range of academic and work-related standpoints from which CSR must be assessed in its analysis and practice worldwide. (Horrigan,