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
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. The neo liberal writers see it as voluntary, but some neo liberal see CSR as an obstruction and diversion from a business primary concern, i.e., profit maximization, yet most neo liberal writers maintain the point of view that, Friedman was actually correct. CSR in the long run can be beneficial to the organizations it prevents from unnecessary government intervention and
Corporate Social Responsibility Corporate Social Responsibility (CSR) is an activity that has gained momentum among companies, to improve their social image, especially in recent years. Corporate social responsibility has been defined by multiple studies. In this section, we provide a short summary and comparison of the most widely presented versions, followed by an overview of the situation of CSR in India. As defined by the United Nations Industrial Development Organization (UNIDO), CSR is a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. The World Business Council for Sustainable Development (WBCSD) defines Corporate Social Responsibility
Legal responsibility is regarded as the next layer on the pyramid which is defined as some statements such as “it is important to perform in a manner consistent with expectations of gorvenment and law, to comply with various federal, state, and local regulations, to provide goods and services that at least meet minimal legal requirements, to be a law-abiding corporate citizen and a successful firm is defined as fulfilling its legal requirements”. Ethical responsibility is the third component and also the third layer of the pyramid from the bottom up which
Thus, it is now being undertaken throughout the globe and increasingly become an important activity to businesses nationally and internationally. (Corporate social, 2004) CSR becomes a fundamental business practice. One of the essential elements to achieve good business practices and effective leadership is strong CSR program. Companies also determine that the relationships with stakeholders both internal and external will be directly affected by their impact on economic, social and environmental landscape. (Corporate social, 2004) In accordance to Estallo, Fuente & Miquela (2007), they claimed that companies can yield higher level of profit with a long term socially responsible behavior and which might become a competitive advantage.
There is a lot of discussion and disapproval revolving around the concept of corporate social responsibility. Some critics are against corporate responsibility, stating that the goals of corporate social responsibility are in contradiction with the goals of social responsibility. They believe that the major responsibility of a business should only be in favour of its owners and shareholders. Many businessmen and economists argue that the true and sole aim of business is to make profit for the interest of shareholders. They also state that doing anything different and outside of this objective defeat the purpose of basic business principles.
Recently, promoting human welfare and increasing positive impacts on society have been accepted as core of business operations by most companies. This kind of corporate activities are included in Corporate Social Responsibility model. In increasingly competitive world organizations and companies face with the demand for profitability and responsibility. Thereby, they use some strategic philanthropic actions for meeting this demand. These actions are gathered under the idea of Corporate Philanthropy which is the foremost part of Corporate Social Responsibility model, created for both the corporation’s benefit and welfare of society.
Definition of CSR and a description of what it is. Corporate Social Responsibility is a voluntary initiative taken by a company where they contribute to social, ethical , and environmental issues in society. Also known as “corporate citizenship”, CSR is a continuous commitment of a business to demonstrate ethical and economic activity that benefit the staff, the shareholders, the business, but most of all society. It is when a business takes of time money to make a difference in society. Whether it is to help a certain people or raise awareness for a cause, CSR is done in most businesses and it highly beneficial for the business in many ways.
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).
Considering CSR as a new business model can also be considered a social innovation, since it applies a new business concept that will result in social development (see the figure below). As the new business model, it is only natural that the CSR perspective be integrated into the company’s strategy, and that the stakeholder’s perspective leads to strategic collaboration with those affected by the business. The result of this process is that positive social impacts can be achieved, and not only positive economic outcomes. In this respect, a company integrating a CSR perspective can be considered a social enterprise, where equal emphasis is placed on financial sustainability and positive societal impacts based on innovative