Corporate Social Responsibility
Introduction
Corporate social responsibility (CSR) is a concept which is also known as corporate citizenship, corporate conscience or in a simple way a responsible business. It is an integrated concept of self-regulatory business model for any organisation. Corporate Social Responsibility has been in practice for more than fifty years now, which has been adopted not only by domestic companies but also by transnational company with voluntary CSR initiatives (Chernev and Blair, 2015). It includes Corporate Social Responsibility for code of conduct, organisational health and environment, companies reporting on social, financial and environmental aspects, partnership with agencies, NGO’s and UN
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(Blowfield and Murray, 2011)
According World Business Council foe sustainable development in its publication making good business use CSR as:
“Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of workforce and their families and the society at large.”
It is evident that the activities of every business are concern for all its stakeholders and for the business itself and this initiates continuing business activities to inculcate the code of ethics and social responsibility in its organization. Social responsibility for the corporate become an integral part of their various operations be it in human resource, in management or in wealth creation process which increases the competitiveness in the market of the business and enhances wealth creation value for the society as whole. But there is nothing same for the different organization that are different approaches, different values and priorities of the business. The business goal is to encourage the positive approach of
Businesses, specifically larger corporations, play a major role in what occurs in society therefore, they are responsible to their stakeholders not only to pursue economic goals but the greater social good as well. Corporate social responsibility (CSR) means that a corporation should act in a way that enhances society and its inhabitants and be held accountable for any of its actions that affect people, their communities, and their environment. (Lawrence, 2010). Social responsibility is becoming the norm so much so that some businesses have incorporated it into their business model. There are three components of the bottom line of social
This essay will analyse the strengths, limitations and challenges of ethical and socially responsible business practice. The purpose of this essay is to identify the advantages and limitations of following business ethics and act socially responsible in business operations. In order to help me analyse those further I will use the case study from food industry - McDonald’s corporation.
The definition of sustainable development is put forward by the World Commission on Environment and Development (1987), which says that SD is: ‘Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.’ Retaining existing customers is important to companies. As CSR enables corporations to improve their products and services in order to meet public’s expectations, they deliver superior value to the existing customers. A favorable image helps the company to keep customers from switching to its competitors. At last, corporations can maintain a long-term relationship with their loyal customers and they will buy more products. CSR is a sustainable concept because it does not only serve the present customers but also the future generations. A healthy environment, prominent economy and sound education system are what society desires in the future. Some banks in Hong Kong (e.g. Heng Sang Bank) provide financial aid to Hong Kong’s University students. The aim is to enhance the labor quality, so that turnover rate and absenteeism will be reduced as a result of these kinds of social programs. Therefore, corporations direct resources in CSR in pursuit of gaining good reputation. It is beneficial to company as well as the present and future community. Consequently, the performance and profitability of corporations will be maintained in the
Corporate social responsibility (CSR) is a form of corporate self-regulation integrated into a business model. CSR policy functions as a built-in, self-regulating mechanism that has business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered stakeholders. CSR is titled to aid an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development business ethics is one of the forms of applied ethics that examines
Corporate social responsibility is a common topic in the world. CSR is a business method that promotes sustainable development by providing economic, social and environmental benefits to all stakeholders. ⑵( Andriof
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.
According to World Business Council for Sustainable Development, “Corporate social responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large”. A social responsible company may be defined as a company which integrates and takes in active parts the social and environmental concerns of one’s community and society. Acting in a socially responsible manner is more then just an ethical duty for a company nowadays, it is something that essentially has long term interest in both the company and the community. The motive is to produce economic value for the company but as well for the society as
While there is no universally accepted definition of Corporate Social Responsibility, it is usually described in terms of a company considering, managing and balancing the economic, social and environmental impacts of its activities. The notion of corporate social responsibility should be a part of the core business operations of a company, rather than a separate ‘add on’.[2]
Corporate Social Responsibility refers to a company’s sense of responsibility towards the community and environment in which it operates. Companies express this citizenship through their waste and pollution reduction processes, by contributing educational and social programs, and by earning adequate returns on the employed resources. CSR is also considered as a strategy to create, develop and sustain positive company reputation and brand images.
Corporate social responsibility has been one the key business buzz words of the 21st century. Consumers' discontent with the corporation has forced it to try and rectify its negative image by associating its name with good deeds. Social responsibility has become one of the corporation's most pressing issues, each company striving to outdo the next with its philanthropic image. People feel that the corporation has done great harm to both the environment and to society and that with all of its wealth and power, it should be leading the fight to save the Earth, to combat poverty and illness and etc. "Corporations are now expected to deliver the good, not just the goods; to pursue
CORPORATE SOCIAL RESPONSIBILITY (CSR) is a term describing a company’s obligation to be accountable to all of its stakeholder in all its operation and activities. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions, balancing the needs of stakeholder with their need to make profit.
Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions. “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson 15). This paper will discuss the concept of corporate social responsibility. It will give the definition of the phrase, and identify some of the global factors that necessitate corporate social responsibility. It will discuss the importance of corporations setting up corporate social responsibility projects, and the impact these have on society. Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.
Corporate Social Responsibility can be defined has an obligation beyond that required law and economics , for a firm to purse long term goals that are good for the society. This entails the continuing commitment by business to behave ethically and contribute to economic development while improving quality of the workforce and their families as well as that of the local community and society at large. Bhatia (2004) defined corporate social responsibility as a tool that encompass good business ethics and encourage enterprises to be involved in social issues such as community improvement, improving underdeveloped working conditions and so on that are outside walls of the enterprise. Aleix Ferrer Duch
CSR (Corporate social responsibility, also called corporate conscience, corporate citizenship or sustainable responsible business/ Responsible Business) (D Wood, 1991) is a form of corporate self-regulation integrated into a business model. In some models, a firm 's implementation of CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law."(McWilliams & Siegel, 2001) CSR refers to the enterprise to create profits, bear legal responsibility to shareholders, while also commitment to employees, customers, community and environment responsibility, corporate social responsibility must go beyond the requirements of corporate profit as the only goal of the traditional concept, emphasized in production process of the human values of concern, emphasis on the environment, consumers, contribution to society.
Social responsibility is an idea that has been of concern to mankind for many years. Over the last two decades, however, it has become of increasing concern to the business world. This has resulted in growing interaction between governments, businesses and society as a whole. In the past, businesses primarily concerned themselves with the economic results of their decisions. “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson 15). This paper will discuss the concept of corporate social responsibility. It will give the definition of the phrase, and identify some of the global factors that necessitate corporate social responsibility. It will discuss the importance of corporations setting up corporate social responsibility projects, and the impact these have on society. Social corporate responsibility and the maintenance of high ethical standards is not an option but an obligation for all business.