(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. In another research, according to Ahmad, Sulaiman & Siswantoro (2003), in Malaysia, there are various NGOs and environmental pressure groups which suggest that stakeholders care about businesses which are responding to social responsibility concerns. On the other hand, corporate commitment to green ethics and support of socially responsible programs is playing an increasingly influential role in consumer‟s purchasing behavior. (The Nielsen,
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.). Volkswagen has Corporate Social Responsibility embedded into its company’s culture and values.
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 recent business world, various strategies re being employed by companies with various aims including that of increasing its competitiveness, increasing the profits as well as increasing its working environment among others. Most companies have engaged in the employment of corporate social responsibility (CSR) as a strategy of increasing their benefits which in return are expected to give the company using it a competitive advantage. Corporate social responsibility is a business practice that comprises of initiatives aimed at benefiting the society and can include various tactics including those of implementing business operations that are greener as well as giving away a portion of the proceedings held by a company to charity. This social
54 The principles includes principles of Corporate Social Responsibility expressed at the institutional , organizational and individuals levels, process of Corporate Social Responsiveness, such as environmental assessment, stakeholder management and issues management; and the outcomes of corporate behavior, including social impacts, social programs and social policies. This concept of corporate social performance looks at how business integrates social demands, arguing that business depends on society for its existence, continuity and
Is Corporate Social Responsibility (CSR) beneficial to a company’s performance? What stance should companies therefore take towards CSR initiatives? The past decades have witnessed the surge in importance of corporate pro-social practices, which has aroused widespread controversy about the attitude companies are supposed to take towards the executions of Corporate Social Responsibility (CSR). While CSR campaigns have been launched by a large number of corporations, their effectiveness in benefiting company performance is still under challenge. CSR is defined as the concept whereby social and environmental concerns are voluntarily synthesized by companies in their business operations and in their relationship with stakeholders (Commission of
Social responsibilities is an ethical or ideological theory that an entity whether it is government ,corporation , organization or individual has a responsibility to society .The obligation of an organization 's management towards the welfare and interests of the society in which it operates. This commitment is to see beyond the legal obligation to extend statutory requirements and provides organizations to take further steps voluntarily to improve the quality of life for employees and their families as well as for the local community and society. Corporate social responsibility is a concept that takes into account the organizations that take account of the interests of the company by taking responsibility for the impact of their activities
Many have found that acting in social responsible way will greatly affect financial performance. For some people, the idea of performing social responsibility seems very ridiculous for the reason that the final purpose for corporations is to maximize profit and shareholders’ value. For instance, Milton Friedman (1962) argues that the maximizing shareholders’ wealth will prohibit firms from acting in ways that benefit the society, because it’s impossible for corporates to practice social responsibility at the expense of bottom line. However, Alexander and Bucholtz (1978) and Bowman and Haire(1975) have pointed out that stakeholders will probably view corporate social responsibility, which is a part of corporate’s reputation, as its management skill. Thus, low social responsibility will lead some stakeholders to doubt the capability of a firm and may increase the number of a firm's more costly explicit claims (J.
Brief explanation Corporate Social Responsibility (CSR) has been receiving much attention lately from business firms. Defined as “ the continuing commitment by business to behave ethically and contribute to the economic development while improving the quality of life of the workforce and their families as well as the local community and society at large”, it has been viewed as a source of a sustainable development and has been viewed by firm executives as a mandatory. One of the reasons why CSR has been