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Corporate Social Responsibility is the permanent requirement by business to behave decently and donate to economic development while improving the quality of life of the staff and their relatives as well as of the local public and society at large. CSR is a concept whereby companies incorporate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis (Commission of the European Communities, 2001). The promise of business to contribute to maintainable economic progress, working with
employees, their families, the local community and society at large to improve their quality of life (World Business Council for Sustainable Development, 1999). Corporate social responsibility is the continuing obligation by business to behave morally and contribute to fiscal development while improving the quality of life of the staff and their families as well as the local communal and civilization at large (World Business Council for Sustainable Development, 2000).
Another definition used by Business for Social Responsibility is operating a business in a style that grows or exceeds the ethical, legal, commercial and public hopes that society has of business. On the other hand, the European Commission hedges its gambles with two definitions covered into one: A idea whereby companies elect voluntarily to contribute to a better society and a cleaner environment. It is a concept whereby companies incorporate social and environmental concerns in their business operations and in their contact with their stakeholders on a voluntary basis.
Corporate social responsibility is fundamentally a concept whereby companies agree willingly to contribute to a better society and a cleaner environment (Commission of the European Communities, 2001). Business decision making is related to moral values, obedience with legal requirements and esteem for people, communities and the environment (Business for Social Responsibility, 2000). Social responsibility is a guiding principle for every decision made and in every area of a business (Business for Social Responsibility, 2000). Open and translucent business practices based on ethical values and admiration for employees, communities and the environment, which will donate to maintainable business success ( IBLF, 2003). Corporate social responsibility is the whole relationship of the corporation with all of its stakeholders. These include customers, employees, communities, owners/investors, government, suppliers and competitors. Elements of social responsibility include investment in community outreach, employee relations, formation and keep of employment, environmental stewardship and economic performance (Khoury et al., 1999). Corporate social responsibility is attaining commercial success in ways that honor moral values and respect people, communities and the natural environment (Business for Social Responsibility, 2003b). CSR is the idea that an enterprise is responsible for its impact on all relevant stakeholders. It is the ongoing commitment by business to act properly and responsibly and donate to economic development while improving the quality of life of the work force and their families as well as of the local community and society at large (Commission of the European Communities, 2003).
Stakeholders befall both within a firm and outside. The wider seek of social responsibility is to create higher and higher standards of living. 1980). . balancing the needs of stakeholders with their need to make a profit (Ethics in Action Awards. Corporate social responsibility (CSR) is about the central behavior of companies and the responsibility for their total impact on the societies in which they work. Corporate social responsibility is concerned with handling the stakeholders of the firm fairly or in a socially accountable manner. ‘Morally or responsible’ means in view of stakeholders in a way considered suitable in civilized societies. accordingly. 2001). 2003). whereby the benefits of all stakeholders including investors. while conserving the productivity of the corporation. indicating that a stake may go beyond mere ownership (Jones. CSR is not an optional add-on nor is it an act of philanthropy. 1998). for peoples both within and outside the corporation (Hopkins. CSR is defined as the view that corporations have an responsibility to essential groups in society other than stockholders and beyond that agreed by law or union contract. Social includes economic responsibility. Socially responsible companies consider the full scope of their impact on communities and the environment when making decisions. social and economic effects it has on society (Marsden. customers. CSR is a phenomena that describing a company’s responsibility to be accountable to all of its stakeholders in all its operations and activities. employees and the environment are reflected in the company’s policies and actions (CSR wire. Stakeholders exist both within a firm and outside. A socially responsible corporation is one that goes a profitable business that takes account of all the positive and negative environmental. behaving socially responsibly will increase the human development of stakeholders both within and outside the corporation (Hopkins. 2003). 2003). CSR is concerned with considering the stakeholders of the firm morally or in a accountable approach.CSR is defined as the incorporation of business operations and values.
2003). First loop present the economic responsibilities of the firm like production of products and economic growth. with a need to insert society’s values into its core operations as well as into its treatment of its social and physical environment. Committee for Economic Development in 1970 presented three circle definition of CSR. CSR is defined as the duty of a company for the entirety of its impact. beyond the benefits of the firm and that which is required by law (McWilliams and Siegel. The second loop present that firm should relate its economic act to society value. economic. 2002). This can be summed up as the triple bottom line approach: i. 2003). Corporate social responsibility is about companies having responsibilities and taking actions beyond their legal obligations and economic/business aims. employees. social and environmental (Commission of the European Communities. Corporate social responsibility (CSR) or corporate citizenship can most simply be defined as a set of management practices that ensure the company minimizes the negative impacts of its operations on society while maximizing its positive impacts (Pinney. 2001). p. communities and the environment (Global Corporate Social Responsibility Policies Project. 2001). 50). community and for the whole nation (Johson. At its best.e. Top management of any socially answerable corporation balance all the multiple interests of a firm and they do not only think about the profit of their shareholders but they also think about their suppliers.Actions that appear to further some social good. Responsibility is accepted as incorporating a spectrum – from the running of a profitable business to the health and safety of staff and the impact on the societies in which a company operates (Ethical Performance. for . 1971. Global corporate social responsibility can be defined as business practices based on ethical values and respect for workers. These wider responsibilities cover a range of areas but are commonly summed up as social and environmental – where social means society broadly defined. rather than simply social policy issues.
Socially responsible business practices strengthen corporate accountability regarding ethical values and in the interests of all stakeholders. Joseph W. they allow people and invest in communities where a business operates (Business for Social Responsibility. follow the rule and regulation. CSR is the degree of moral duty that may be certified to corporations beyond simple conformity to the laws of the state (Kilcullen and Kooistra. that firm should work for improvement of society like try to reduce the poverty. Responsible business practices respect and preserve the natural environment. These four operations or activities provide support to business. The outer circle present. This requires it . There is two aspects of this definition first one is that firm should adapt responsibility voluntarily and second is that firm should think wide and beyond the objectives of its shareholders (Jones. McGuire(1963) define the corporate social responsibility as corporate is not only responsible for any economic and legal activity but it is also responsible towards society’ s welfare and this obligation is beyond from above obligations.. ethical and socially supportive. Carroll (1983) presented four part definition of CSR: economic. It’s a corporate obligation it should essence on society other that its shareholders and should look outside legal laws and unions. Helping to improve the quality and opportunities of life. 2000). ethical and philanthropic. Means business should be economically profitable. pp. legal. 59-60). 1980. Corporate social responsibility recognizes that the private sector’s wider commercial interests entail it to manage its impact on society and the environment in the widest sense. 1999). CSR is the voluntary assumption by companies of responsibilities beyond purely economic and legal responsibilities (Piacentini et al.instance firm hires new employees and build strong relationship with them and save them from any injury. 2003a).
co. CSR goes beyond legal obligations. including the way it treats its work force. towards authority and towards civil society (Foran. customers. which reveals the priorities and characteristics of each business. with concern for society’s long-run needs and wants. CSR is about businesses and other organizations going beyond the legal responsibilities to manage the impact they have on the environment and society. 2001). suppliers. . investors. 2001). and its impact on the world around it (Reder. http://www.uk/news/call18. suppliers or communities. be they employees. as well as the magnitude they attempt to protect the environment (Lea. customers and the communities in which they operate. In actual. [corporate] social responsibility refers to both the way a company conducts its internal operations. 1994). 1/24/01). towards the environment in which their operations are entrenched.to establish an appropriate dialogue or partnership with relevant stakeholders. 2002). CSR means being a good steward of society’s economic and human resources (Journal of Consumer Marketing call for papers for special issue on social responsibility for consumer marketing practice. CSR has been defined as a ‘contract’ between society and business wherein a community grants a company a license to operate and in return the matter meets certain responsibilities and behaves in an satisfactory manner (Woodward-Clyde. An all encircling notion.literaticlub. “An organization’s responsibility to maximize its positive impact and minimize its negative effects in being a paying member to society. 1999). 2002). CSR can be defined as the set of practices and behavior’s that firms adopt towards their labour force. involving voluntary. CSR can be roughly defined as the incorporation of social and environmental concerns in business operations. including dealings with stakeholders (Lea. as well as sectoral and local factors (UK Government.html. this could include how organizations interrelate with their employees. private sector-led engagement.
then. p. paying dues for public desires. 2000. providing jobs and just pay for workers. ethical. which can grow to nonprofit institutions which own shares of publiclyheld companies and help lift the poor out of poverty as their wages rise (4) Create (and. discovering new resources. maintain) new jobs (5) Defeat envy though generating upward mobility and giving people the sense that their economic conditions can improve (6) Promote innovation . 187) to fulfill to be good corporate citizens: economic. technological improvements. Economic Responsibilities Ever seeing as the industrial revolution. is to be beneficial for principals by delivering a good feature product at a fair price is due to customers. and philanthropic (which I call “altruistic” or “humanitarian” CSR. looking for raw materials supplies. suggesting that corporations have four responsibilities or “four faces” (Carroll. it was praised. legal. Carroll (1979) proposed a popular four-part definition of CSR. we have depended on business as a most important economic institution for producing want-satisfying goods and services. in the past. I would add.Types of Corporate Social Responsibillity Archie Carroll (1979) and other researchers believe that we should judge corporations not just on their economic success but also on non-economic criteria. all while earning a profit for the owners and helping as an investment chance. generating the investment capital required for economic growth. These are to: (1) Satisfy customers with goods and services of real value (2) Earn a fair return on the funds entrusted to the corporation by its investors (3) Create new wealth. Economic responsibility. p. and products. Novak (1996) more fully delineated a set of seven economic responsibilities. if a firm did all of this while obeying the law.
It is important to be committed to being as profitable as possible. Legal Components (Responsibilities) It is important to perform in a manner consistent with expectations of government and law. It is important to maintain a strong competitive position. and might be followed unwillingly out of fear of penalty rather than willingly out of internal moral belief. I call these duties economic CSR. . and local regulations. telling us what ought not to be done. It is important to be a law-abiding corporate citizen. It is important that a successful firm be defined as one that fulfills its legal obligations. state. Laws regulating business ways are accepted for the reason that the social order does not always belief business to do what is 4 right. are reactive. purely provide a floor or moral minimum for business behavior. rather than positive. on the other hand. It is important to comply with various federal. laws have assured shortcomings to make sure responsible actions: they are of limited range (they can’t cover every possible possibility). It is important to maintain a high level of operating efficiency.(7) Diversify the economic interests of citizens so as to prevent the tyranny of the majority. Economic and Legal Components of Corporate Social Responsibility Economic Components (Responsibilities) It is important to perform in a manner consistent with maximizing earnings per share. telling us what have to to be done. Legal Responsibilities Legal duties involve complying with the law and playing by the rules of the game.
and fair. there is . Ethical Responsibilities Ethical duties reduce the boundaries of legal duties. insufficient moneys for the arts. doing what is right. 2001). 1990. on the other hand. 1996). although they are not necessarily codified into law (Carroll. 1993). just. humane principles. and the ethics of capitalism. They must being moral. and other social ills within a community or society. The business has no “moral obligations. p. drug and alcohol evils. Altruistic/Philanthropic Responsibilities The terms altruistic or humanitarian CSR I have coined to propose real optional caring.” I call moral duties ethical CSR. crime. regardless of whether the firm will financially reap what it has morally sown. or practices that are either likely (positive duties) or forbidden (negative duties) by members of society. The Protestant work ethic trained people to work hard and be successful—this was the real meaning of business’ social responsibility. lack of enough funding for educational institutions. poverty. Today. and avoiding destruction or social injury as well as preventing damage caused by others (Smith and Quelch. with regard to peoples’’ moral rights. often not in practice) with this third set of “social responsibilities. chronic unemployment. unfortunately. 525). It is important to provide goods and services that at least meet minimal legal requirements. virtually all members of the business system have the same opinion. Ethical responsibilities those policies. furthering some social good.” only alleged “social obligations” (DeGeorge. at smallest amount in theory (although. Humanitarian CSR is based on potential responsibility—the company has the resources to be able to do social good. decisions. 1996. It demands that corporations help ease “public benefit deficiencies” (Brenkert. even at likely personal or organizational sacrifice. business ethics was not a major concern of businesspeople. Rather. and human rights commitments (Novak. unfair labor practices. Humanitarian CSR is Carroll’s “fourth face” of CSR — humanitarian responsibilities—to be a “good corporate citizen” by “giving back” to society. 168). such as city blight. p. as we have just seen. illiteracy. institutions. In some peoples’ philosophy it is also founded on role-related responsibility—companies and their professionals are participants in the social deal. They obtain their source of power from religious convictions. Prior to the 1960s. moral traditions. it was absent to theologians to discuss issues of fair salary.It is important that a successful firm be defined as one that is consistently profitable.
It is important that managers and employees participate in voluntary and charitable activities within their local communities. It is important to recognize that corporate integrity and ethical behavior go beyond mere compliance It is important to assist voluntarily those projects that enhance a community's "quality of life. It is important that good corporate citizenship be defined as doing what is expected morally or ethically.no causal responsibility. It is important to provide assistance to private and public educational institutions. and procedures intended to improve society’s welfare and get better the quality of life. policies. procedures. Altruistic CSR. then ." . Humanitarian CSR includes all philosophies. It is important to recognize and respect new or evolving ethical/ moral norms adopted by society. and it involves linking core corporate competencies to societal and community needs. Philanthropic Components (Responsibilities) It is important to perform in a manner consistent with the philanthropic and charitable expectations of society. It is important to assist the fine and performing arts. It is important to prevent ethical norms from being compromised in order to achieve corporate goals. Ethical and Philanthropic Components of Corporate Social Responsibility Ethical Components (Responsibilities) It is important to perform in a manner consistent with expectations of societal mores and ethical norms. goes away from ethics to somehow making the world a better place by helping to solve social problems.
including describing CSR in terms of a business operation ‘contribute to economic development’ ‘preserving the profitability’ ‘business operations’ The stakeholder dimension Stakeholders or stakeholder groups ‘interaction with their stakeholders’ ‘how organizations interact with their employees. customers and communities’ ‘treating the stakeholders of the firm’ ‘how organizations interact with their employees. customers and communities’ ‘treating the stakeholders of the firm’ The voluntariness dimension Actions not prescribed by law Conceptual Framework . suppliers.The five dimensions of Corporate Social Responsibility Dimensions The definition is coded to the dimension The natural environment Example phrases The environmental dimension ‘a cleaner environment’ ‘environmental stewardship’ ‘environmental concerns in business operations’ The social dimension The relationship between business and society ‘contribute to a better society’ ‘integrate social concerns in their business operations’ ‘consider the full scope of their impact on communities’ The economic dimension Socio-economic or financial aspects. suppliers.
From Milton Friedman. owners. customers. suppliers. each problem situation presents a system formed of the corporation. They are solved through the cooperation of the different constituencies of the alliance. managers. The latter owns a share of the corporation. It differs only by professing to believe that collectivist ends can be attained without collectivist means." 1970 by New York Times Company Framework of Corporate Social Responsibilities. Whereas for stakeholder theory the corporation is the center of analysis and is visualized as surrounded by its stakeholders. which is to say. in my book Capitalism and Freedom. Hence the stockholder is a stakeholder of the corporation whose vital interest at play is the share owned of the corporation and the money invested in this share. a stakeholder is any group or individual that has a vital interest in the doings of the corporation. . That is why. I have called it a "fundamentally subversive doctrine" in a free society." "But the doctrine of "social responsibility" taken seriously would extend the scope of the political mechanism to every human activity. Hence. the lens of problem solving refocuses on each of the other stakeholders. engages in open and free competition without deception or fraud. • But Werhane makes two significant departures from the stakeholder approach. First. and have said that in such a society. the alliance approach decentralizes the corporation and alternatively visualizes each stakeholder as the center for the purpose of framing problems and generating solutions. "there is one and only one social responsibility of business--to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game. "The Social Responsibility of Business is to Increase Its Profits. the alliance approach sees the corporation as a part of a system of interrelated and interdependent parts. • Second. she uses moral imagination to distance the corporation from the problem solving process. A multi dimensional review • A stakeholder must be distinguished from a stockholder. employees. and governments. local communities. Problems emerge from value conflicts within and between the constituent parts of the system. It does not differ in philosophy from the most explicitly collectivist doctrine. On the other hand.
it does promise solutions by highlighting and facilitating moral imagination both in the framing of problems (problems are posed in terms of framings from multiple perspectives) and in terms of the generation of solutions (multiple problem-framings help us to visualize new solution horizons). .• While this approach does not lend itself to algorithms or rules. irrespective of an organization’s size or sector. but because it is part of their culture. it might even be the reason for their existence. Those organizations sometimes do not even know that what they are doing has a special name: Corporate Social Responsibility (CSR). they might not be applying this to the full extent or to the entire organization and its supply chain partners. their philosophy. It can be used in the context of any management system and is fully compatible with the EFQM Excellence Model. Given that all organizations have some connection with society. For them it is logical to act like that. to varying degrees. However. • Together with the tools provided in this document for the identification of stakeholders and for the CSR Self-Assessment of the organization. this being unknown territory for many organizations. Nevertheless. CSR is becoming. For them it is logical to be committed to its stakeholders. They are not doing so because they fear the reaction of pressure groups on their activities. • Many organizations are already committed to their stakeholders and already committed to making a broad contribution to society. an unavoidable issue. it is truly embedded in their organization. they are not necessarily well equipped to deal with the challenges ahead. this Framework will help advance CSR in the management system. • Corporate Social Responsibility (CSR) is an essential ingredient for the survival of any organization.
b) Data Collection For the CSR measurement. He collects data or feed back or he may also collect different views from the stakeholders about the CSR performance of their organization. The data can be collected through multiple ways of Primary and Secondary data collection techniques. a) Creating Research design A research design includes the research problem and the ways to measure the degree of responses relative to results thereof. f) Case Studies . e) Mail surveys This is a data collection technique for multidirectional purposes of a researcher. f distribution can be very handy in evaluating the CSR performance of an enterprise. it is necessary to focus on the relevant information. c) Existing Database Database is customize utility program that an organisation use to keep the records and information regarding all its field force. Studying and analyzing the database can provide sufficient information to evaluate the corporate social responsibility of a business unit d) Standardizes Tests Various hypothesis testing techniques like z.Methodologies Following different methodologies can be used to evaluate the corporate social performance of an organisation. Other testing techniques studied in Inferential Statistics may also provide researcher with better look into CSR of a business. These methodologies provide deep analysis for CSR measurement. t.
. He can understand the core issues quite efficiently by analyzing different case studies. A researcher studies and evaluates different scenarios happening in different organizations regarding the issues of CSR performance.This methodology comes under the head of Literature Review.
leads towards better anticipation and decision making. j) Qualitative Analysis of Data k) Quantitative Analysis of Data . i) Sampling Collecting and analyzing the data through various means always give better anticipation. He measures the degree of performance in different dimensions under observation strategy. It is one best tool that can be used by a researcher. This might be an effective tool for a researcher for CSR measurement. In it. CSR performance can also be measured through different sampling techniques.g) Observations It is a direct action methodology used for direct measurement of CSR performance. a researcher observes organizational operations in accordance with the rules provided by CSR. Sometimes it may be very difficult to study the entire sets of population. h) Videotaping Recording of operations and activities of a business entity in video formats and evaluation of these operations afterwards.
. Many approaches to CSR hollow businesses against society. "Fair-trade fits very strongly into our loyalty to our communities. it’s approaches also will be broad and great. procurement of Fair Trade tea and coffee has been adopted by different businesses. educated personnel. wealth. tax revenues. It is not being liked by some of organizations because this approach is not given that or helping people to teach some skills but community-based development usually leads to more sustainable development. For society to flourish. A business needs a healthy. For example.Approaches There are some common approaches that are used by Corporate Social Responsibility. Incorporate the CSR strategy into the business strategy This is another frequent approach that CSR is to incorporate the CSR strategy directly into the business strategy of an organization. emphasizing the costs and limitations of compliance with externally imposed social and environmental standards. Philanthropy approach Philanthropy approach is very familiar approach that includes financial aid and relieve given to local organizations and needy communities in rising countries. Its CSR manager commented. Creating Shared Value The mutual worth model is based on the idea that corporate success and social advantage are interdependent. sustainable resources and proficient government to compete effectively. Whatever. and opportunities for philanthropy. CSR will be more and more important in the future. beneficial and competitive businesses must be developed and supported to create income.
Companies operating with factories or suppliers in cheap labour markets are mainly focused on human rights and labour practices. This approach looks primarily at the governance and environmental sides of CSR and starts with measuring and reporting mostly in the form of a GRI report. Human Rights This is another common and important approach mostly used by organizations.There are some other common approaches used by organizations and many organization adopted slightly different different approaches to implement CSR. It is very popular with resource and manufacturing industries. . By the Book This is also a common approach.
The company will actively advertise its particular philanthropic or social involvement. where the consumer backlash can be vigorous.). ethical conduct. Brand This approach is a combination of philanthropy and cause-related marketing is at the hub.). . as attracting and keeping the best people is supreme to competitive survival. hence this approach combines the employee and social areas of CSR. It focuses Employees. teamwork. contribution and philanthropy. The best employees have a values/ trust system that cares about transparent internal cultures. Fair Trade products etc. This approach mostly use in the food industry (Starbucks. Ben& Jerry. Avon etc. Nike. work-life balance and also about community engagement. usually spending much more on advertising than the philanthropic activity itself. apparel and cosmetics industries (Gap. high spirits. Soft Knowledge based industries mostly uses that approach.This approach to CSR is common in the textiles.
Corporate Social Responsibility’ Models CSR Contingent Model Focuses Environment Corporate DNA Motivations/initiatives HRM Size and global presence of corporate Vertical Integrative level Supply chain Society Environmenta l strategy License to operate business Ethical considerations Engagement with environment to increase corporate value Initiatives in local community to obtain license to operate Carroll’s CSR Pyramid .
Philanthropic/ Huminity (Be good Corporate Citizens) Ethical Responsibility (Obligations to do what is right and wrong) Legal Responsibility (Obey the Laws) Economical Responsibility (Be profitable) Four Factors model .
Accountibility Competitiveness Corporate Social Responsibili ty Transparency Responsibillity Four Factors of CSR .
. Competitiveness It is related with Reputation. commitment and trust. Responsibility It is related with total responsibility measurement. Transparency Code of good practices with transparency.Accountibility Openness and awareabillity of strategic Management.
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