Stakeholder Theory Of Csr

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2.3. Specific Theories of Corporate Social Responsibility
2.3.1. Stakeholder Theory
The stakeholder theory gives a picture of how businesses are supposed to function. It gives an indication of how to create value for stakeholders of a business entity; suppliers, customers, employees, local communities, banks, financiers, and shareholders. For a business entity to be truly successful, their interests have to be given full consideration. The stakeholder theory originated from Edward R. Freeman’s (1984) book on “Strategic Management: A Stakeholder Approach”. In the book, it was emphasized how best management can be reflective of various stakeholders. Freeman identified two kinds of stakeholders which he referred namely to as the “narrow definition” …show more content…

This takes place through supporting community initiatives such as education, health, microcredit, and so many others.
2.3.3. The Relational Model of CSR
In the contribution of their models, all other models in CSR have propounded government involvement in CSR, however, Albareda, Ysa, and Lozano, (2004), as well as Midttun, (2004) have attempted to give a definition of the role-play of government in the concept of CSR. This they attempted by designing separate models that define the relational dimension of governments, organizations, and societies in a whole …show more content…

It made its emphasis on the fact that countries were on the verge of new discoveries as the traditional welfare roles were becoming too burdensome and hectic to curtail and societies are getting more and more enlarged due to population increase. Hence, the shared responsibilities by; “government institutions and private organizations”, “government institutions and societies”, and/or “private organizations and civil society organizations” is necessary for meeting such complex societal challenges. Mendoza’s analysis and results were drawn from the paradigms of welfare theories in the 20th century which centered on the analysis of governments’ public sector. However, sighting from Albareda, (2004) and Lozano et al., (2005), the Albareda, et al., (2008), framework (see figure 2, Appendix 1) can be viewed from two separate

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