Corporate Social Responsibility: Literature Review

891 Words4 Pages
Literature Review:
Corporate Social Responsibility
Corporate social responsibility is generally seen merely as a device for generating goodwill and improving the reputation of an organization among its customers (Chernev & Blair 2015). According to (Carroll & Shabana 2010) “The social responsibility of business encompasses the economic, legal, ethical, and philanthropic expectations that society has of organizations at a given point in time.” (Witkowska 2016). Fig 1.1
According to (Waldman, Siegel & Javidan 2006) the components of CSR model by Carroll can be summarised as below
Economic Responsibility:
It is the return to investors, fair compensation to employees, goods at fair prices to customers, etc. Thus, meeting economic responsibility
…show more content…
This has been well documented in prior researches that the companies who are socially responsible will generate better financial results (Chernev & Blair 2015). The customers remain loyal to the brand plus the price sensitivity also tends to decrease according to the research by (Orlitzky, Schmidt & Rynes 2003). In another study it was revealed that the good social behaviour of the company will increase sales as the consumer will be morally satisfied and is likely to reward the company for its good conduct (Andreoni 1990). However on the contrary, some findings demonstrate that socially responsible firms have a tendency to be perceived as being warmer, more ethical, and more compassionate, but they apparently turn out to be less competent in their core area of expertise (Aaker, Vohs & Mogilner 2010) henceforth, expected to produce inferior products compared to those made by companies not engaged in prosaically behaviour.
Ethical Theories: Consequentialist
● Consequentialist Ethics: the expected outcome or consequences of the action. According to (Chakrabarty & Erin Bass 2013) Consequentialist ethics from CSR perspective emphasizes more on the cost and benefits of the outcome rather than costs and benefits of the action originally performed. So whether an act is right
…show more content…
The rough idea behind ethical egoism is that the right thing to do is to only look out for your own self-interest. We are morally required only to make ourselves as happy as possible. We have no moral obligations to others. Leadership would then be a way to control our inner trend for domination and to avoid our own (physical or psychical) death. So, according to (Hobbes 1960) leaders, as everybody else, would also be continuously searching for their

More about Corporate Social Responsibility: Literature Review

Open Document