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The Role And Importance Of Corporate Social Responsibility

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Corporate Social Responsibility (CSR) has gained its importance as an essential activity for corporate nationally and internationally. It has become a matter of utmost importance for diverse groups demanding change in the business orientation. From 1980 to 2000, corporations recognized and started accepting a responsibility towards society. CSR implies some sort of commitment, through corporate policies and action. This operational view of CSR is reflected in a firm's social performance, which can be assessed by how a firm manages its societal relationships, its social impact and the outcomes of its CSR policies and actions.12
The term ‘corporate social performance’ was first coined by Sethi (1975), expanded by Carroll (1979), and then refined …show more content…

In fundamental terms it is about structured sustainable businesses, which need strong economies, markets and communities. Corporate Social Responsibility (CSR) is the decision-making and execution process that guides all business activities in the precautions and promotion of international human rights, labour and environmental principles and agreement with legal requirements within its operations and in its relations to the societies and communities where it operates.
The economic, environmental and social sustainability of communities during the ongoing engagement of stakeholders, the dynamic involvement of communities impacted by company activities and the public reporting of company policies and performance in the economic, environmental and social grounds, are commitment for the contribution of CSR.
Some more thoughts can be referred as "Corporate Social Responsibility (CSR) is the organized commitment by business to behave ethically and contributes to economic development while improving the workforce quality of life and their families as well as of the local community and society at immense" as well as "CSR is about ability building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government".
Key Drivers of …show more content…

In recent years CSR has become a fundamental business practice and has gained much consideration from chief executives, chairmen, boards of directors and management teams of larger international and national companies. They understand that a strong CSR program is an essential aspect in achieving good business practices and successful leadership. Companies have determined that their impact on the economic, social and environmental backdrop directly affects their relationships with stakeholders, in particular investors, employees, customers, business partners, governments and communities.
CSR encourages a vision of business accountability to a wide range of stakeholders, as well shareholders and investors. The key areas of apprehension in CSR are environmental protection and the well-being of employees, community and civil society in general, both now and in the future.
The concept of CSR is underpinned by the idea that businesses can no longer act as isolated economic entities operating in objectivity from broader society. Conventional observations about competitiveness, survival and profitability are being removed

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Creating a strong business and building a better world are not conflicting goals they are both essential ingredients for long-term success - Bill Ford. In recent years, customers and employees have demanded corporate social responsibility (CSR) ethics, inclusion and diversity, reflecting that businesses should do more than meet the basic requirements for ethical corporate activities. Modern businesses are increasingly employing these concepts to encourage change for good and make a significant contribution to the world as they begin to acknowledge their environmental and social impact.

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Retrieved from http://dx.doi.org/10.1016/j.orgdyn.2015.02.200 Carroll, A. B., & Shabana, K. M. (2010). The Business Case for Corporate Social Responsibility: A Review of Concepts, Research and Practice. International Journal of Management Reviews, 12 (1), 85-105. doi:10.1111/j.1468-2370.2009.00275.x Chan, L. Y. (2014). Corporate Social Responsibility of Multinational Corporations.

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On the other hand, research by McWilliams, Van Fleet, & Corey (2002) supports the idea that firms can use CSR and political influence to affect regulations themselves, such as by influencing intellectual property regulation to perhaps lower labor costs by preventing foreign competitors from using their own versions of an organization?s protected technology. The Oxford Handbook of Corporate Social Responsibility (2008) represents CSR behaviors through the categories of philanthropic economic activity, good corporate governing, implementation of corporate sustainability practices focusing on environmentalism, and a variety of other actions involving social conscientiousness and participation in organizational culture and activity. Additionally, questions arise not only out of the nature of the duties or deontological concerns of corporations, as emphasized in the previous point, but also based on discussion of what motivates participation in CSR: executive leadership, organizational fiscal outcomes, or an organizational or individual culture of altruism (Orlitzky, Siegel, & Waldman, 2011). Centering the issues of CSR around the perspective of stakeholder management (Freeman, 1984) enables corporate firms to take a vision of the firm?s performance in which it is embedded within the larger social and environmental contexts. This has the advantage of aligning with consequentialist outlooks which, as Trevino and Nelson (2014) note, is by far the most commonly cited form of ethical decision-making by managers, and in undermining the ethical-dilemmas which employees often face in choosing between the profits of the organization which employs them and the consequences of those in society outside of the organization by leading

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Defined this way, quite a few people are impacted by CSR. The breadth of stakeholders is vast—it includes the company’s shareholders, employees, customers and business partners. They will all be affected by corporate social responsibility defined as operational excellence” (p.1). Traditionally, competitive advantages, are ways for business to stand apart from other competitors. Successful businesses, must be able to deliver a product to a target audience.

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Some believe CSR is disingenuous and a disservice to shareholders. Critics believe business practices intended to grow the business are not CSR, regardless if there seen as environmentally-friendly, humane, etc. Advocates of CSR believe the power of business is to do well and make society better; which is best done by fully incorporating CSR in business models. Professor Ivey summed up this idea by stressing CSR should be conducted strategically, not just ethically. He emphasized you must understand the financial implications of CSR, evaluate its risk, and consider your obligation to stakeholders. He stated CSR practices should bring in enough return on equity to warrant continuation.

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People are becoming more aware of the many issues around the world like poverty, climate change and other issues. Research and surveys have shown that there is a growing trend that customers these days prefer to buy products of those companies that are involved in CSR activities. Companies have realized that CSR is an important part of their business plan and are doing their best to incorporate it. There

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The main objective of this paper is to provide an in depth viewpoint of the Corporate Social Responsibility (CSR) of Southern Company. Corporate Social Responsibility is a commitment that businesses and corporations make that holds them accountable for contributing to the economic development of where they are located. CSR also improves the quality of life for the company’s workforce, their families, and the community. To maintain their CSR, many companies choose to donate to charities, volunteer in their community, and “go green” to improve their surrounding environment. While researching Southern Company, the most frequent CSR activity from the company is the formation of partnerships with foundations.

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Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. 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 stats that a firm can never exist In a vacuum (Khalidah et.

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Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders . The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.

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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.).

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989 Words | 4 Pages

Firstly, what definitely is a corporation? Corporation is the most common of business organization formed by a faction of people. Corporations are very powerful and gigantic firms which exist as a legal entity. Functional according to several rights and owned by stockholders who shares profits which are the most important aspect in a corporation named liability. By law, a corporation has plenty of the same rights as a person.

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In the recent years more and more companies in the retail and food industry are concerned about the environmental consequences of their action and also the social ethics for the people involved in the production process. This is a shift from the philanthropic actions companies used to take in 1970’s and by following basic international standards to a ‘business case’ perspective of CSR (Customer Social Responsibility). According to the World Business Council for Sustainability Develpoment ( WBCSD) CSR is: ‘’ the commitment of business to contribute to sustainable economic development, working with employees, theirfamilies, the local community and society at large to improve their quality of life’’ (World Bank, 2002)

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Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders. The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.

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Involved in CSR activities are proven to create good image and reputation for a company. In the long run, it helps a company to increase shareholders’ value and achieve sustainable business

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CSR plays an important role in world of business as it implies to do well by doing good. A large number of multinational units have set global standards, in which same technology is used throughout the world. This helps to create a strategic advantage as well as also serves to elevate the technological expectations. The CSR initiatives not only help in creating awareness and education, but it also helps in ensuring the growth of middle class people. Some of the companies make use of it by expansion of their consumer base in rural as well as urban areas.

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