The concepts of corporate social responsibility (CSR) have been evolving for decades. At the very beginning, it was argued that corporation’s sole responsibility was to provide maximum financial returns to shareholders. However, it became quickly apparent to everyone that this pursuit of financial gain had to take place within the boundary of the legal system (Carroll, 1979;1991). Bowen’s 1953 publication of ‘Social Responsibility of Businessman’ was considered by many scholar to be the first definitive book, to explain the idea behind CSR. Following Bowen’s book, a number of works played a vital role in developing the social responsibility concept (Cheit, 1964; David & Blomstrom, 1966; Carroll, 1979;1991).
One of the factors
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Joseph Guire (1963), acknowledged corporation’s primacy of economic concerns, but also accommodated a broader view of the firm’s social responsibility, suggesting that social responsibility are not only including but also moving beyond economic and legal considerations. Thus, it conceptualised social responsibility as something a firm considers in addition to economic and legal rationale. However some scholar have a dissimilar view, it has been argued that in order for a firm to achieve social responsibility, the behaviour of doing such charitable act must be voluntary, otherwise it will defeat the purpose for being ‘socially responsible’ (Manne & Wallich, 1972).
Correspondingly, alternate approach such as listing of areas in which business viewed as having responsibility have been used to uncover the true meaning of CSR (Carroll, 1979). As it has been argued that in order for CSR to be accepted by a conscientious business person, the concept should be framed in such a way that the entire range of business responsibilities are embraced (Carroll, 1991;1999). One of the first approach to include the scope of economic and non-economic concerns in defining social responsibility was the “three concentric circles” developed by the Committee for Economic Development (CED) in 1971. This model was the first to explain the three basic option corporations have when carrying out their responsibilities, including area such as
There are conflicting expectations of the nature of a company’s responsibilities to society. However, those companies that undertake what may be termed ‘Corporate Social Responsibility’ must decide; what are the actual social responsibilities of these companies? I will present a possible paradigm. Also, I will look at the benefit to the business that employs proper management as compared the business with poor management. This research paper describes my view of corporate social responsibility and compares the social responsibilities of Delta Air Lines and Spirit
Corporate Social Responsibility (CSR) is something that affects all companies and should be an active factor in the company’s decision making. It is something all corporations need to care about. CSR is when business’ or corporations take part in an initiative or campaign for a cause that will benefit society and/or in some way make the world a better place (Taylor, 2015). Initially, Corporate Social Responsibility started to take shape around the 1950’s, but some say that it dates all the way back to the 1800s, the idea of CSR was seen (Carroll, 2007). One may think that because it is dated so long ago, it doesn’t have an important impact today nevertheless, it is proven that Corporate Social Responsibility is a pathway for entities to self benefit as they are in the process of benefitting society.
Carroll developed ‘The Pyramid of Corporate Social Responsibility’ in the 1991 and at the foundation of the pyramid is the concept that economic performance underlies all other factors. The economic responsibilities of a business are to be profitable and at the same time, business is expected to obey the law. The law is society’s codification of right and wrong and companies must play by the rules. A business whose sole objective is to maximize profits is not likely to consider its social responsibility, although its activities will probably be legal. Legal and economic concerns have long been acknowledged in business, but voluntary and ethical issues are more recent
“Economic, social, ethical and environmental responsibilities, some of which require compliance with the law others requiring discretionary action to ensure that the company does not knowingly operate to the detriment of society” – McIntosh et al, 1998, Pg. 284
A combination of recent changed to the world scene and pressures from public opinion now requires corporations to take on a new role, social responsibility. Corporate social responsibility is a corporation’s initiative to monitor and ensure compliance with the law, ethical standards, and norms. It can also be defined as corporation’s actions that further social good and go beyond the interests of the firm in order to make the world a better place. Essentially a corporation should embrace the idea of corporate citizenship, the idea that businesses are socially responsible for meeting legal, as well as ethical and economic responsibilities placed on them by shareholders. Although this is an alluring concept, it is also a flawed one. It
Crane, A. and Matten, D. (2010) ‘Corporate social responsibility’, (3rd edition) Business Ethics. Oxford: Oxford university press, pp.51-60
Social obligation is a thought that has been of worry to humankind for a long time. In the course of the most recent two decades, be that as it may, it has happened to expanding worry to the business world. This has brought about developing communication between governments, organizations and society all in all. Previously, organizations basically fretted about the financial consequences of their choices. "Today, notwithstanding, organizations should likewise think about the legitimate, moral, good and social results of their choices" (Anderson 15). This paper will talk about the idea of corporate social obligation. It will examine the significance of partnerships setting up corporate social obligation ventures, and the effect these have on society.
The issue of corporate social responsibility has recently been the subject of much debate. These debates pose the question “What responsibilities, if any, do corporations have to society and the greater good?” From a legal standpoint the answer to that question is none. Legally, corporations have no responsibility to participate in any type of social responsibility, in fact, doing so is illegal and can lead to directors and corporate officers being sued by shareholders. Although the specific law varies from jurisdiction to jurisdiction, the general idea is always the same, corporations are only responsible for making the greatest profits for their shareholders. For example, In Maine, Section 716 of the business corporation act reads in part: ”The directors and officers of a corporation shall exercise their powers and discharge their duties with a view to the interests of the corporation and the shareholders.” (qtd. In The Humanist). The opposition to these viewpoints believe however that the action of corporate executives participating in social responsibility will in fact not only benefit the community and the general public, but in the long run, the corporation itself along with its shareholders. Many believe, as do I, that as a society we are more likely to engage in business with corporations who give back to its consumers and who concern themselves with the betterment of our society and the world as a whole, and in turn the result for these corporations is larger
BusinessDictionary.com (n.d.), defines corporate social responsibility (CSR) as “a company’s sense of responsibility towards the community and environment, both ecological and social, in which it operates” (para. 1). When expressing citizenship, companies can do so through its waste and pollution reduction processes, by contributing to educational and social programs, and by earning adequate returns on the employed resources (BusinessDictionary.com, n.d.). Economic, political, and civil society are three spheres of human civilization that reveal fundamental principles of corporate social responsibility. The economic sphere, which deals with businesses and economy of a society, the political sphere, which deals with government and the laws and rules that mandate and enforces, and the civil society sphere, which builds civility and community (“Corporate Social Responsibility-Module Two Overview: Three Spheres of Human Civilization”, 2014). Cleco exhibits corporate social responsibility using the three spheres of human civilization through stewardship and conservation initiatives, community outreach, and regulatory requirements throughout its service territory, which includes 23 Louisiana parishes.
As we all know, corporate social responsibility is a discipline in business practices. This is one of the business practice sector that is most demanding and constantly changing sector in business enterprise. Because of these demanding tasks that corporate social responsibility has posed on business, business leaders or stakeholders has been faced with the responsibility of bringing a favorable environment for business activities. The prospect of corporate social responsibility became famous in the 1960s. Many companies have used this term in an unlawful manner to benefit the business responsibility rather than overall business welfare, which it is meant for (Ferrell 2014, pp. 3-17).
Corporate social responsibility is a management concept, whereby an organisation activities are geared towards the compliance of strict ethical codes. These codes are then extrapolated to the organisation business activities in attempt to reduce the number of negative externatlies which may be conceived through malpractice. “A business that makes nothing but money is a poor business.”(Henry-ford-News Journal-[Mansfield-Ohio]-3 August-1965). Therefore, corporate responsibility will play a substantial part in organisational behaviour, due to an increase in public awareness of social responsibility. Organisations will now feel obligated to adopt a utilitarian thought process when carrying out day to day activities. [Richard L. Daft, p149]“Corporate Social Responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it because it is good for our business” –Niall Fitzerald-Former-CEO-Unilever.
It is widely believed that Corporate Social Responsibility (CSR) is one of the most important tasks in the twenty century. Some people may consider that companies have always been the profit organizations, and social affairs are in charge by the government, which is a common sense that there are no directly relationships between each other. However, CSR is considered one of the key elements to sustain companies to vary their original operation levels. In this essay, I attempt to outline the different definitions of Corporate Social Responsibility and evaluate the reasons why CSR became a prominent part of the business world by actual
Historical background of the development of CSR is almost as important as the ongoing discussion on what CSR is and how and where it should operate. Many scholars argue that these are not interchangeable and need to be assessed in conjunction with each other. For purposes of this paper it is pivotal to look into the past to see what stood behind the broadening of companies’ accountability beyond the standard agency theory (limited liability of shareholders for the company’s violations or breach and the company’s main accountability being towards its shareholders and investors only) to the stakeholder theory (company’s accountability towards a broad range of stakeholders, including employees, environment and local communities).
Social responsibility is the accountability of companies for the contacts of its results along with actions on civilization and the surroundings, through crystal clear and ethical performance with the purpose of gives to continue progress together with the strength and the benefit of people. The truth so as to the expressions itself has tainted above this point also recommends that the significance qualified to perception for example, corporate social responsibility will maintain to progress in change with business supporting and common improvements. The conception of corporate social responsibility means that every organization have their own responsibilities as well as ethical and moral responsibilities in another sources of earning
The origin of Corporate Social Responsibility in businesses has no fixed date. Most experts, scholars, researchers, practitioners, writers, philanthropists, civil societies & conscious citizens opined that it can be carried out in an ethical and socially responsible manner. It is assumed that in the year 1960 corporate social responsibility began to emerge, and the civil rights movement, consumerism, and environmentalism greatly changed the way society expected the business world to behave. In the year 1970 there came the common use of the term CSR along with many attempts to officially define the phrase. In 1980, the new International Development Strategy focused on achieving a more stable world economy, stimulating economic growth, evening out social inequities and countering the worst impacts of poverty. While scholars from the 1970s into the 1990s wrestled with CSR concepts and developed stakeholder theory, numerous business leaders had independently articulated similar views on the purpose of business. Throughout this period scholars attempted to define, redefine, and clarify the concept of corporate social responsibility that they saw being assumed by, imposed upon, and played out by business. In addition, scholars sought to connect and integrate disparate principles and activities into a more comprehensive conceptual model.