Its about making a positive impact on society whether social, ethical or environmental. Having CSR helps a company promotes the name of the company and helps build its reputation. As the company becomes more and more known it easily attracts customers and prospective employees, making the company more profitable. As a survey has proved, the majority of people agree that companies should pay more attention to Environmental issues(61%) and contribute more to society(52%). That’s why many of today’s successful companies have incorporated CSR and made it a real part of their
Aaron (2011) defines CSR as encapsulating a broad field ranging from corporate commitments and ethical conduct to philanthropic gestures by corporations in their operating communities. Aguilera et al. (2007) use a definition of CSR, which refers to the firm’s considerations of, and response to issues outside the usual firm requirements to accomplish social and environmental benefits along with the traditional economic gains that the firm
Ever since their inception, corporates like the Tata Group, the Aditya Birla Group, and Indian Oil Corporation, to name a few, have been involved in serving the community. Through donations and charity events, many other organizations have been doing their part for the society. The basic objective of CSR in these days is to maximize the company's overall impact on the society and stakeholders. CSR policies, practices and programs are being comprehensively integrated by an increasing number of companies throughout their business operations and processes. A growing number of corporates feel that CSR is not just another form of indirect expense but is important for protecting the goodwill and reputation, defending attacks and increasing business competitiveness.
Business operates within a society, therefore any action and decision made by the business should be made considering the impact of economic and social values. Stakeholder approach means better management and a more socially responsible behavior by the firm. The stakeholders approach sees individuals in a business acts altruistically, it is interrelated though independent for self creation and community creation, stakeholders approach addresses both collective and ethical theories, for a collective social demand and the right thing to achieve a good society. Mitchel, Agle and Wood (1997) emphasized on the interests of the stakeholders, Freeman and Phillips (2002) explained the fiduciary duties towards stakeholders. 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.
BrØnn and Vrioni (2015) state that it is commonly accepted that cause-related marketing is a communications tool for increasing customer loyalty and building reputation. Along with abiding by policies, if CSR improves the social value of a brand which may further push customers towards purchase, to study the effect of social value on the customer buying decision becomes very vital to its operations. By understanding consumer reactions to CSR, firms can develop CSR strategies that are optimal from not only a normative perspective, but also a business one (Sen and Bhattacharya,
Team members are the last stakeholders. They are dependent on the project as their jobs as well as their performance on the project depend on it. Now that the identification of your stakeholder is done, how do you plan to work with them? First you need to find out what helps in motivation of your stakeholders and in which way they are connected to the project. You can record these data in a stakeholder analysis document.
CSR is first and foremost a cultural change within the company, or even a way to revisit its modes of decision-making and operation, the role and involvement of managers, starting with the first of them, the leader business, will be decisive in the appropriation of the approach by the entire company. To a lesser degree, it is the same for the company's staff who must be convinced and trained from the beginning of the process. Other stakeholders, but also employees, are direct beneficiaries of the company's implementation of CSR. But they are also required to respect a certain mode of conduct in line with the CSR approach in their different interactions with the
Starbucks has instituted a Global Responsibility Report, an annual document created by to highlight the company’s activities in CSR. The report is publicly available on the company website and provides and in-depth look at the corporate CSR program. This report covers activities in the three pillar areas of Starbucks’ CSR program, progress on stated goals, and what lies ahead for the company in its CSR efforts. The three concepts of people, environment, and community can cover a wide range of CSR ambitions and goals. Starbucks has primarily looked to its employees, suppliers, and customers since the 2008 transformation agenda.
Carroll (1991) classifies CSR into four dimensions which make up the four layers of a CSR pyramid. This study adopts the four dimensions developed by Carroll, namely economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility, and uses them to measure the consumers’ perception of CSR. CSR in Indian Context India is the first country in the world to mandate Corporate Social Responsibility (CSR) spending, through a statutory provision under the Companies Law 2013 and expects an annual spending of around INR 30,000 Cr by India Inc. This will ensure a gradual shift from the traditional charity model to a more strategic CSR model that fits in with the long term objectives of the company. Still the practice or disclosures of CSR initiatives are very few among the companies operated in India.