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.
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
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.
EVOLUTION OF CORPORATE SOCIAL RESPONSIBILTY: Bowen’s publication on “social responsibility of business” was the work through which the term CSR was coined in 1953.Through this work Bowen proposed some important question like ‘what responsibilities any society can reasonably expect from business organization’s ’?41 Traditional corporate philanthropy dates back to the 19th century and emerged out of a variety of factors, such as: 1) When talking about CSR the business organization should show some concern for the welfare of the immediate members of the corporate body like their employees and their families. 2) Innovative contributions by visionary business leader in quest of personal satisfaction, who built up philanthropic institution out of
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).
In the 1960s, we began to see scholars striving to best state what CSR meant (Carroll, 2008) . Among scholars, who contributed to defining the corporate social responsibility on early stages, were C. Walton with his book Corporate Social Responsibilities (1967), which analyses the role of business organization in society, William C. Frederick with the article The Growing Concern over Business Responsibility (1960), which suggests new ideas how to judge your responsibility, as a businessman. Joseph McGuire`s Business and Society (1963) also significantly contributed to the studying
In addition to their use of social media, television, radio, and newspaper, the McDonalds has make significant use of billboards. Television has always has always had a crucial role in the company 's advertising. McDonald 's growth strategy is based on three aspects; introducing more restaurants, maximizing sales and profits at existing restaurants, and improving international profitability. Maximizing of sales and profits at their existing restaurants were accomplished through better operation and innovation, product development and refinement, effective marketing and lower development and operating costs. (Global Strategy of McDonald and How It Reached All corners of World) To sustain its life, McDonalds has put in to focus an effective competitive strategy to make them stand out against their competitors.
The organization view themselves primarily as a franchisor and believe franchising is important to delivering great customer experiences and driving profitability. At year-end 2014, more than 80% of McDonald’s restaurants were franchised. From
McDonald’s always places customers as their core value; they find the ways to get customers’ attention and gain their loyalties. Moreover, they always anticipate the customers’ needs and create newer products to fulfill market demand, to create value meal in consumers’ eyes. McDonald’s always provides the high quality burgers, fries at a reasonable price, excellent services and clean warming environment to all customers for every times they come to the every restaurant around the world. Now it’s time for technologies age, McDonald’s also keep up with new technologies and applies them to make procedures faster, increase productivities. They launch the payments services on smartphones; this will be easier for customers to place orders fast and simply by using smartphones.