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Corporate Social Responsibility

Discuss critically the extent to which you accept the concept of


Corporate Social Responsibility

By

[Name of the Writer]


[Name of the Institution]

Corporate Social Responsibility

Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Overview of Corporate Social Responsibility.............................................................................3
Evolution of the concept of Corporate Social Responsibility......................................................3
Importance of Corporate Social Responsibility for Organizations..............................................4
CSR Application in organization-Example..................................................................................5
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................7

Corporate Social Responsibility

Discuss critically the extent to which you accept the concept of


Corporate Social Responsibility
Introduction
The doctrine of social responsibility has become an integral part of the corporate culture
of many businesses today, and it is fundamentally changing the role of corporations in a capitalist
economy device (Hu & Scholtens, 2014, p. 276). Even despite the fact that capitalism has
appeared, with some reservations, the most successful economic system ever applied in practice,
in most cases, public support for the ideal of a free market economy in many countries remains
extremely weak. The ideas of corporate social responsibility reflects the desire of many
businessmen to indulge the request of the general citizens make capitalism more humane and
socially fair face (Hu & Scholtens, 2014, p. 276). Of course, this is the last thing needed modern
capitalism. It is doubtful that the managers of the companies, proclaiming themselves socially
responsible, able to predict how to make the world in a certain sense whatsoever better, but they
clearly contribute to the weakening of public support for the ideal of a free market economy
(Abdulrazak, & Ahmad, 2014, p. 210). Therefore, the aim of this essay is to critically analyze the
concept of Corporate Social Responsibility, because the concept of corporate social
responsibility (CSR) has entered a stage of active development, which now acquires a new
character.
Discussion
Overview of Corporate Social Responsibility
The corporate social responsibility (CSR) is a notion that imitates the intended decision
of the organization in order to take part in the development of environment and the society. CSR
is based on interaction with stakeholders: employees, shareholders, investors, consumers,
government and nongovernmental organizations (Abdulrazak, & Ahmad, 2014, p. 210). Thus,
one of the most important tasks of CSR is communication, identifying the views and interests of
all stakeholders in order to maximize take them into account in its follow-up.
Evolution of the concept of Corporate Social Responsibility
In the evolution of the concept of corporate social responsibility three basic
interpretations have formed.

Corporate Social Responsibility

According to the first (the classical approach) and most traditional responsibility of
business is to increase profits for its shareholders. This view is called the theory of corporate
selfishness, expressed Nobel laureate in economics Milton Friedman (Milton Friedman) in 1971
in the article Social responsibility of business - to make money. As a general lack the theory
can be considered a temporary restriction (Flammer, 2015, p. 11). So, if in the short term the
company incurs additional costs in the long-term benefits from improved corporate image, the
development of relations with the local community.
The study of Y. Lacey, Miriam, Kevin Groves (2014, p. 399) stated that the second
concept, called the theory of corporate altruism is just the opposite of the theory of M. Friedman
and appeared simultaneously with its publication. The basic idea - business must take care not
only about profit growth, but also to make the most affordable contribution to social problems,
improve the quality of life of citizens and communities, as well as to the preservation of the
environment. The authorship of this theory belonged to the Committee on Economic
Development (Peloza, Ye & Montford, 2015, p.19).
The third view is the theory of rational egoism (enlightened self-interest) based on the
fact that the social responsibility of business - its just good business because it helps to reduce
the long-term loss of income. The costs of social and charity programs reduced operating profit,
but in the long run to create a favorable social environment and therefore sustainable profits.
Philanthropic and sponsorship programs promote legalized reduce the taxable base of the
company and give a good publicity effect. This is the main motive of the social activity of the
company (Fernandez-Feijoo, Romero & Ruiz, 2014, p. 244).
Importance of Corporate Social Responsibility for Organizations
Also, an interesting interpretation and model of CSR, which has become one of the base
for modern research on this issue, According to the position A. Carroll, corporate social
responsibility can be represented as a multi-level pyramid. Lying at the base of the pyramid
economic responsibility is directly determined by the basic function of the market as a producer
of goods and services to meet the needs of consumers and thus make a profit. According to the
study of Bolton & Mattila (2015, p. 140) under legal responsibility understand the functioning of
the company under the existing legislation. Ethical responsibility implies the companys activity
consonant with the expectations of society, based on the existing standards of morality, is not

Corporate Social Responsibility

enshrined in the legislation. Philanthropic responsibility motivates the company to action to


maintain and develop the well-being of society through voluntary participation in social
programs (Christensen et al., 2014, p. 178).
Thus, CSR is a voluntary commitment of business to carry out its contribution to the
development of society, including economic, social and environmental spheres, the company
received in excess of what it needs from the state and the law (Christensen et al., 2014, p. 178).
The evolution of the concept of CSR has led to the modern understanding of it as a responsibility
of the company for the impact of its decisions and activities on the environment through
transparent and ethical behavior that:

Simultaneously puts in to the commercial progress and development of the organization


and the well-being of society, leads to economic, social and environmentally sustainable

enhancement and upbringing of the environment


Takes into the consideration the overall hopes of the organizational stakeholders.
Fulfill with the relevant legislation and constant with international behavioral norms
(Mallory, et al., 2014, p. 22).

CSR Application in organization-Example


Understanding the importance of public respect, large international companies to
strengthen their reputation tend to focus on the social significance of their activities (Jamali,
2014, p. 71). Mission of the company Johnson & Johnson on its website gives more detailed
definition of social responsibility: We have a responsibility both to the society in which we live
and work and to the world community as a whole. We must be good citizens: to maintain a fair
work and charitable endeavors and make true due to our share of taxes. We should welcome civil
and social improvement and development of education and health care. We must maintain in
good order the property to which we have the honor to possess, while taking care to protect the
environment and natural resources.
Conclusion
In the nut shell, the concept of corporate social responsibility extends the traditional
understanding of the responsibility of the business, increases the number of its functions in social
development, as well as helping to improve performance and increase business value. The
concept of changing the look at the functioning of the business - the corporation ceases to be

Corporate Social Responsibility

exclusively economic institutions, the sphere of their interests moved to interact with interested
parties (stakeholders), participation in local community development, and government support in
social issues. The concept of corporate social responsibility is gradually moving from an abstract
concept into concrete observation and is pragmatic.

Corporate Social Responsibility

Bibliography
Abdulrazak, S. R., & Ahmad, F. S. (2014). The Basis for Corporate Social Responsibility in
Malaysia. Global Business and Management Research: An International Journal, 6(3),
210.
Bolton, L. E., & Mattila, A. S. (2015). How Does Corporate Social Responsibility Affect
Consumer Response to Service Failure in BuyerSeller Relationships?. Journal of
Retailing, 91(1), 140-153.
Christensen, L. J., Mackey, A., & Whetten, D. (2014). Taking responsibility for corporate social
responsibility: The role of leaders in creating, implementing, sustaining, or avoiding
socially responsible firm behaviors. The Academy of Management Perspectives, 28(2),
164-178.
Fernandez-Feijoo, B., Romero, S., & Ruiz, S. (2014). Commitment to corporate social
responsibility measured through global reporting initiative reporting: Factors affecting the
behavior of companies. Journal of Cleaner Production, 81, 244-254.
Flammer, C. (2015). Does corporate social responsibility lead to superior financial performance?
A regression discontinuity approach. Management Science.
Hu, V. I., & Scholtens, B. (2014). Corporate social responsibility policies of commercial banks in
developing countries. Sustainable Development, 22(4), 276-288.
Jamali, D. (2014). Overview of corporate social responsibility in the middle east. The World
Financial Review, 71-72.
Mallory, D. B., Rupp, D. E., Bauer, I. T., & Erdogan, B. (2014). Good leadership: Using
corporate social responsibility to enhance leader-member exchange. In Annual Meeting
of the Society for Industrial and Organizational Psychology, Honolulu, HI.
Peloza, J., Ye, C., & Montford, W. J. (2015). When companies do good, are their products good
for you? How corporate social responsibility creates a health halo. Journal of Public
Policy & Marketing, 34(1), 19-31.
Y. Lacey, Miriam, and Kevin Groves. "Talent management collides with corporate social
responsibility: creation of inadvertent hypocrisy." Journal of Management
Development 33.4 (2014): 399-409.