Business
Corporate Social Responsibility
Corporate Social Responsibility (CSR) refers to a business practice that involves integrating social and environmental concerns into a company's operations and interactions with stakeholders. This includes initiatives to support local communities, reduce environmental impact, and uphold ethical business practices. CSR aims to contribute positively to society while also enhancing the company's reputation and long-term sustainability.
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11 Key excerpts on "Corporate Social Responsibility"
eBook - PDFEthics and Corporate Social Responsibility
Why Giants Fall
- Ronald R. Sims(Author)
- 2003(Publication Date)
- Praeger(Publisher)
Out of suuvh criticism has grown the notion of Corporate Social Responsibility, or CSR. Let us take a closer look at the nature of social responsibility. Many argue strongly that organizations and their leaders must con- sider the impact of their decisions and actions on society as a whole and that they must assume responsibility for their activities. It is argued further that organizations should take steps to protect and improve the welfare of society. Some have suggested that organizations exist to serve the needs of society Therefore, being a steward of the needs of society is a socially responsible, appropriate, and natural act." 3 In short, leaders and managers must evaluate their decisions and actions not merely from the perspective of organizational effectiveness, but also from the perspective of the greater good. An early view of CSR is as follows: "Corporate Social Responsibility is seriously considering the impact of the company's actions on soci- ety." 4 Another definition that may be helpful is, "The idea of social responsibility . . . requires the individual to consider his [or her] acts in terms of a whole system, and holds him [or her] responsible for the effects of his [or her] acts anywhere in that system." 5 A third definition places social responsibilities in context vis-a-vis economic and legal objectives. That is, "the idea of social responsibility supposes that the corporation has not only economic and legal obligations, but also cer- tain responsibilities to society which extend beyond these obligations." 6 A fourth definition relates CSR to business management's growing concern with stakeholders and ethics. According to this definition, "Corporate Social Responsibility relates primarily to achieving out- comes from organizational decisions concerning specific issues or prob- lems which (by some normative standard) have beneficial rather than adverse effects upon pertinent corporate stakeholders.
eBook - ePubCosmopolitan Business Ethics
Towards a Global Ethos of Management
- Jacob Dahl Rendtorff(Author)
- 2017(Publication Date)
- Taylor & Francis(Publisher)
10 What is Corporate Social Responsibility?In this chapter we will, on the basis of the previous presentation of business ethics and the ontology of responsibility, go into depth with the discussion of Corporate Social Responsibility (corporate responsibility or CSR) (Idowu 2013) This approach is based on our earlier description of the ethics of responsibility (Maring 2001; Rendtorff 2016d). We can argue that CSR is sweet aspirational talk for cosmopolitan business ethics. By aspirational talk we mean that CSR expresses the wishes of a company to reach perfection in terms of ethics and responsibility (Christensen, Morsing, and Thyssen 2013). The definition of cosmopolitan business ethics as global corporate citizenship and universal responsibility is the foundation of CSR in the specific context of management of the company. A central issue is the definition of the term (Pedersen 2006, 2015). We then analyze the arguments for and against Corporate Social Responsibility. Finally, we argue for an institutional theory of corporate moral responsibility as based on social responsibility (Goodpaster 2003; Carroll 2009).Corporate Social Responsibility
Theories and principles of business ethics form the basis for the formulation of the concept of corporate responsibility, the responsibility of business (CSR) and its social and environmental responsibility, topics that the term of social responsibility usually covers. The definition of the concept of the responsibility of business is in itself a difficult discussion (Boyer 2001; Morsing and Thyssen 2003; Djursø and Neergaard 2006; Rendtorff 2009; Idowu 2013). In general, when we define corporate responsibility we deal with the topic of the company’s basic existence as a responsible organization. This responsibility is based on the company’s power and ability to act and take into account all the stakeholders. We can, however, criticize the term “corporate responsibility” for being too vague and too broad in comparison with the intention to define specific responsibilities of the company, particularly with a focus on an effort of business that goes beyond the already given responsibilities. This has been one of the arguments for using the concept of CSR, which has gained considerable ground, not at least because of the European Union’s work with the concept of CSR in the Green Paper on Corporate Social Responsibility
eBook - PDFThe Future International Manager
A Vision of the Roles and Duties of Management
- L. Zsolnai, A. Tencati, L. Zsolnai, A. Tencati(Authors)
- 2009(Publication Date)
- Palgrave Macmillan(Publisher)
49 4 Developing Social Responsibility Steen Vallentin 4.1 Existing challenges and deficiencies The private sector is increasingly called upon to help solve or allevi- ate social and environmental problems, and many companies are heeding the call. Supposedly, there is today not a single company in the Fortune 500 that does not have some kind of policy regarding responsibility. Companies are engaging in a variety of activities that have hitherto been associated with the state/government or civil society, such as philanthropy and community investment, environ- mental management, workers’ rights and welfare, human rights, ani- mal rights, corruption, corporate governance, and legal compliance. Companies are increasingly presenting themselves as good corporate citizens and making contributions to sustainable development in the broadest sense. Corporate managers are showing a willingness to let their actions and decisions be guided by the demands and expec- tations of a broad variety of stakeholders, rather than the narrow financial interests of owners/shareholders alone. The most commonly used concept in this regard is Corporate Social Responsibility (CSR), a concept which suggests that private companies have responsibilities to society beyond those that can be described in terms of economic performance and legality. The European Commission defines CSR as “a concept whereby compa- nies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a vol- untary basis” (European Commission, 2001). Hence, CSR is usually defined as encompassing voluntary activities; that is, activities that 50 Developing Social Responsibility are not required by law or labor agreements (Carroll, 1999). Even if the concept implicitly suggests that companies have certain social responsibilities, it is explicitly used to argue that social responsi- bilities are something that companies ought to take upon themselves.
eBook - PDF- Joao Heitor De Avila Santos(Author)
- 2019(Publication Date)
- Society Publishing(Publisher)
CSR contributes towards community development (CD), and the same has been discussed in this chapter. 3.1. WHAT IS CSR? In recent times, CSR has become an integral part of most responsible corpo-rates the world over. It is essentially a management concept whereby the so-cial and environmental concerns are given as much emphasis as the business operations or interactions with the stakeholders. It is a “Triple-Bottom-Line-Approach whereby the corporate strikes a balance between the economic, environmental, and social imperatives, all the time, giving a fair hearing to the shareholders and stakeholders expectations. The concept of CSR is wider than any philanthropic, charitable, or sponsorship concerns that an organization adopts. CSR is a strategic business management concept and the goals of philanthropy even though meeting concerns like reduction of poverty (eventually strengthening the brand value of the company and enhancing its reputation) are different from CSR. 3.2. HISTORICAL BACKGROUND OF CSR CSR as we know today has evolved over a period, but its roots lay mostly in the western countries like the United States of America. Corporate and enterprises have shown concern towards CSR in different forms. ESCAP (2011) brought out that in the late nineteenth century, the primary concern of the enterprises was the welfare of their employees and the overall impact they had on the society. With the industrial revolution, the number of workers multiplied manifold. With an increase in living areas in the form of slums, the scope of CSR started widening. Hospitals started getting constructed; provision was made for bathhouses and food coupons for the workers. During this period, individual philanthropists started participating actively in the United States towards social welfare States (e.g., John D. Rockefeller and Cornelius International Corporate Responsibility 57 Vanderbilt).
eBook - PDF- Ronald R. Sims(Author)
- 2010(Publication Date)
- Information Age Publishing(Publisher)
Understanding Corporate Social Responsibility 63 CSR is one of the “p’s” in people, profit, and planet that make up the triple bottom line—another reference to sustainability. Still, many argue that there is really no difference between the two, and thus use the terms interchangeably. In reality, trying to define the difference between CSR and sustain- ability today is like splitting hairs. Some may even argue that we are argu- ing about semantics, which is often what happens with topics like this. Whether a company wants to participate in one, the other, or both, is a strategic choice by leadership. Regardless of whether contemporary lead- ers want to participate in one, the other, or both, then it is a good strategic choice because it shows their level of commitment to being a responsible organization. 32 Factors Impacting Organizations and Their CSR Decisions All organizations operate within the broader community of society. What an organization can and cannot do is always constrained by what is legal, by what complies with government policies and regulatory requirements, by what is considered ethical, and by what is in accord with societal expec- tations and the standards of good community citizenship. Outside pres- sures also come from other sources—special-interest groups, the glare of investigative reporting, a fear of unwanted political action, and the stigma of negative opinions. Societal concerns over gun control, health and nutri- tion, alcohol and drug abuse, smoking, environmental pollution, sexual harassment, and the impact of plant closings on local communities have caused many companies to temper or review aspects of their organizational decisions. American concerns over jobs lost to foreign manufacturers and political debate over how to cure the chronic U.S. trade deficit are driving forces in the decisions of foreign companies to locate plants in the United States.
eBook - PDFPublic Affairs in Practice
A Practical Guide to Lobbying
- Stuart Thomson, Steve John(Authors)
- 2006(Publication Date)
- Kogan Page(Publisher)
121 Corporate Social Responsibility Corporate Social Responsibility (CSR) is becoming an increasingly import-ant part of the business and political lexicon but it remains unclear what it really means and how it impacts on an organization. CSR has grown rapidly, and relatively smoothly, over the last 20 years as increasing num-bers of organizations – primarily businesses but also NGOs and charities – take up the banner of CSR in attempts to make their operations more ethical. In relation to public affairs, getting your CSR right is very important as it will impact on your reputation. If others in your sector are moving forward with a CSR programme, then you also need to, otherwise you will be disadvantaged in political circles. If others are not, then this can present opportunities for you. Politicians, and the media, will reward those with good reputations and CSR programmes with a more favourable hearing or the possibility of being heard. In the event of a crisis a comprehensive CSR programme can also be used as a defence. CSR can be used as proof of ethical behaviour and build goodwill amongst key stakeholders. For these reasons you need to understand CSR and how it has come about. Beware of some confusion about terms in this area especially as some have started to use the term ‘corporate responsibility’ to try and move 6 Public affairs in practice 122 beyond a supposed perception that CSR only refers to the social elements of a company’s behaviour and operations. As a relatively new part of the public affairs lexicon this confusion does not help matters and provides more ammunition for those who see CSR as just a ‘flash in the pan’, a fad whose time will pass quickly.
eBook - PDF- Carolina Machado, J. Paulo Davim(Authors)
- 2022(Publication Date)
- River Publishers(Publisher)
Business leaders are addressing CSR not only because it improves operational efficiency, or because it helps maintain or build their reputation, but mainly to align it with company’s business goals, mission or values. Increasingly more companies are including CSR or corporate sustainability on their management agendas [64]. MIT Sloan Management Review and The Boston Consulting Group [64] found that 67% of managers of surveyed companies say that CSR is critical to being competitive, while 22% that it will be in the future. 68% of the companies inclusively report an increase in their commitment (management attention and investment) to CSR issues in the last 3 years; this is even more remarkable considering that the economy is still recovering from recent global crises and is still facing challenging times. CSR-based approaches are at the core attempts at explaining the ways in which societies and companies interact and mutually shape each other. This has represented one of the key strands of research into organizational management in recent decades [30, 94, 98]. Whilst hardly a new issue [11], there are now demands in place, both internal and external to companies, that 3.1 Introduction 85 deepen the debate on CSR and ensuring such issues rise to the top of manager agendas [78]. This evolution brought about a change in the paradigm of study for the relationship between the economy, society and the natural environment and, consequently, to the principles and standards of strategic management. Despite [63] having first defended the concept some three decades ago, only now is CSR proving truly indispensable with the perspective now gaining recognition. Andrews [3] defended that company strategies prove far more complex than simple economic choices given that the decisions taken hold closely intertwined social, environmental and economic consequences, which result in influencing an enormous number of stakeholders.
eBook - PDFDevelopment in an Era of Capital Control
Embedding Corporate Social Responsibility within a Transnational Regulatory Framework
- Ciara Hackett(Author)
- 2017(Publication Date)
- Palgrave Macmillan(Publisher)
6 1 The Evolution of the CSR Concept: From Sharing to Caring 1.1 Introduction and overview Corporate Social Responsibility (CSR) has been heralded as the manner in which corporations position themselves in society. In recent times the scope of CSR has evolved beyond management school and business rheto- ric to become a term recognised by most in society. Whereas the term CSR may be part of general parlance, the nuances of the concept evade many people. This may be attributed to the fluid development of the ideology and, in accordance its evolution has been in a constant state of flux. Dis- cussions on CSR have developed considerably in recent years, to the extent that CSR can now be considered a strategic tool in the relationship between business, government and stakeholders alike. This book is concerned with capital generated by MNCs and the relationship between MNCs and the state. The government’s role within CSR, then, is primarily as an external stakeholder of MNCs. This, and stakeholder management more generally, is explored in more detail in Chapter 4, but the idea behind this chapter is to introduce CSR and to consider the character of CSR today. These two tasks provide a useful lens to analyse the evolution of CSR in both aca- demic literature and practical application – from ‘indirect’ methods such as disclosure legislation and other regulatory practices to the more direct methods of CSR-influenced legislation which is becoming more common- place today. 1.2 Overview of CSR Corporate Social Responsibility (CSR) has spent the last 50 years developing, evolving and reimagining its purpose and value within the company and in broader society. And that is the beauty of it. It is designed to ebb and flow with business trends, to align with market patterns and to gauge soci- etal interpretations of the concept. As such, it has undergone significant rebranding from early inceptions of philanthropy and gift giving. Today,
- J. Jonker, M. de Witte, J. Jonker, M. de Witte, Kenneth A. Loparo, Marco de Witte(Authors)
- 2006(Publication Date)
- Palgrave Macmillan(Publisher)
A central value in CSR is responsibility, defined as the ability to behave properly, make the right decisions and take the right actions without having MichieI Schoemaker and jan Jonker 61 to obtain the permission of others. Responsibility is strongly associated with response and responsiveness. Response is to do with providing an answer and responsiveness is the ability to give that answer. In the CSR debate it is common to distinguish between three types of responsibility: (1) human or social responsibility (inside and outside the organization and involving stakeholders and dialogue with these stakeholders), (2) business responsibil- ity (to run a business according to the market rules of the economic para- digm) and (3) environmental responsibility, particularly in respect of the natural environment. These can be arranged in order of importance but there should be a balance between them, although the nature of this balance and how it can be achieved are unclear. One could argue that a balance can be achieved through the exchange of responsibilities. This implies that a certain weight can be accorded to the various responsibilities, which in turn implies that they can be assessed or measured. It goes without saying that in many situations this will not be the case, and therefore the exchange of responsibilities can lead to internal and external dilemmas. What we have been discussing here is a fundamentally different perspective on the role of organizations in contemporary society. The rational-strategic, object-oriented management approach needs to be replaced by an approach that is firmly grounded in values. We do not need new values, rather we need to agree on which are most important and to act according to them, both individually and collectively.
eBook - PDFGovernance and Social Responsibility
International Perspectives
- Güler Aras, David Crowther(Authors)
- 2017(Publication Date)
- Red Globe Press(Publisher)
A lot of this is just rhetoric from people who, we would claim, do not want to face the difficult issues involved in addressing sustainability. There is a danger therefore that sustainability has taken over from CSR itself as a target for greenwashing. Nevertheless, although the relationship between organisations and society has been subject to much debate, often of a critical nature, evidence continues to mount that the best companies make a positive impact upon their environment. Furthermore, the evidence continues to mount that such socially responsible behaviour is good for business, not just in ethical terms but also in financial terms – in other words that Corporate Social Responsibility is good for business 70 GOVERNANCE AND SOCIAL RESPONSIBILITY as well as all its stakeholders. Thus ethical behaviour and a concern for people and for the environment have been shown to have a positive correlation with corporate performance. Indeed, evidence continues to mount concerning the benefit to business from socially responsible behaviour and, in the main, this benefit is no longer questioned by business managers. The nature of Corporate Social Responsibility is therefore a topical one for business and academics. Sustainability has become one of the most important topics for businesses – and for society – in recent times and is dealt with in detail in Chapter 8. Disclosure in corporate reporting These principles affect not just the behaviour of an organisation but also the reporting of its activities. Thus disclosure is also important and can be expected to increase as corporations engage more in socially responsible activity. An exam-ination of the external reporting of organisations, however, does demonstrate an increasing recognition of the need to include social and environmental information – the triple bottom line reporting mentioned in several chapters – and an increasing number of annual reports of companies include some infor-mation in this respect.
eBook - PDF- Carolina Machado, Joao Paulo Davim(Authors)
- 2016(Publication Date)
- River Publishers(Publisher)
We are watching the emergence of a new type of organization: the sustainable organization. CSR research has been following this trend and is currently focused on examining and evaluating the strategic role played by CSR, its relevance in terms of value creation and how companies may engage in CSR. Recent devel-opments brought about changes in the paradigm of study for the relationship between the economy, society and the natural environment and, consequently, to the principles and standards of strategic organizational management. At present research conducted is fragmented, and there is a tendency to study only “parts” of strategic CSR, not the whole process. Researchers from various disciplines too often ignore the work done in other fields, which could be useful to enrich the lenses through which strategic CSR is seen. This article contributes to the literature by laying down some common ground regarding strategic CSR through the discussion of its definition, essential components, contiguous concepts and approaches scholars are taking in discussing it. There are now demands in place, both internal and external to companies that deepen the debate on strategic CSR and are ensuring such issues rise to the top of managerial agendas. The growing pressure from stakeholders for companies to take into consideration the full extent of their impacts has led to a greater integration of both market and non-market approaches to business challenges. In this case, social and environmental concerns, alongside the economic, fall within the scope of core company operations and strategies necessary to maximizing the generation of wealth for diverse stakeholders and not only for the shareholders, calling for firms’ responsible action. 100 The Strategic Character of Corporate Social Responsibility (CSR) Several arguments and narratives (cases) have been used to explain and justify the investment in CSR and the engagement in and commitment to CSR programs, policies and activities.
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