Corporate Social Responsibility Literature Review

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Literature review
The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition.
“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”

A firm’s assignment of CSR begins with economic responsibility and narrows up with legal, ethical and other responsibilities, such as sound judgment. What was found as ethical pursuance and sound judgment in Carroll’s model, it is now indispensible because of the fact that ethical responsibilities are required
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The goal is to leverage your company’s unique capabilities in supporting social causes, and improve your competitive context at the same time. The job of today’s leaders is to stop being defensive and start thinking systematically about corporate responsibility.”
Michael Porter, Professor, Harvard Business School,

Social responsibility is the responsibility of an organization for the impacts of its decisions and activities on society and the environment through transparent and ethical behavior that is consistent with sustainable development and the welfare of society; takes into account the expectations of stakeholders; is in compliance with applicable law and consistent with international norms of behavior; and is integrated throughout the organization.”
Working definition, ISO 26000 Working Group on Social Responsibility,

“The World Business Council for Sustainable Development has described CSR as the business contribution to sustainable economic development. Building on a base of compliance with legislation and regulations, CSR typically includes “beyond law” commitments and activities pertaining to”:
• Corporate governance and ethics;
• Health and safety;
• Environmental stewardship;
• Human rights (including core labor rights);
• Sustainable
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In instrumental theories corporations involve in the local community, Friedman in 1970 argued that the fruits can be reaped in the long run in shape of resources and needs for the people in the community (Garriga and Mele, 2004; Jensen 2002). The utilitarian theories are based on competitive advantages, Porter and Cremer (2002) and Litz (1996) described those theories in term of devising strategies in natural resources and altruistic activities for marketing. The utilitarian theories are divided into social cost theory which stresses on the socio-economic system driven by the non-economic forces in corporations for the community is also called the instrumental theory which leads to CSR. (Garriga and Mele,2004) The utilitarian theory means that corporations should accept social responsibility and take part in the community development. On the other hand functionalist theory, states that the main objective of the firm is profit making. The firm’s prime objective is return on investment by the shareholders and financially beneficial to all its stakeholders. From the business perspective CSR is a strategy to encounter any outside pressure, so as to keep a balance between profit making and social

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