Corporate social responsibility

Muhammad Danish
 Evolution of CSR
In early writings, the term was popularized as SR (Social
responsibility) rather a CSR (corporate social responsibility)
The publication by Howard R Bowen (1953) book social
responsibilities of the businessman is the beginning of the literature
The work of Bowen proceeded with belief that largest businesses is
centre of powers and decision making and their actions touched the
lives of citizens at many points
According to Bowen social responsibility of businessman is “it
refers to the obligation of businessman to pursue those policies, to
make those decisions, or to follow those lines of actions which are
desirable in terms of the objectives and values of our society”
Further Bowen put forth notion of “Social consciousness” of
managers mean that businessman responsible for the consequences
of their actions
Evolution of CSR
In 1960s most prominent author was Keith Davis who put
forth definition of social responsibility as “business man’s
decisions and actions taken for reasons at least partially
beyond the firm’s direct economic or technical interest”,
should seen in managerial context
Davis became well known for his views on the relation
between social responsibility and business power. He set
forth the “iron law of responsibility” which held that “social
responsibilities of businessman need to be commensurate
with their social power”. In other words if social
responsibility and power were to be relatively equal, then the
avoidance of social responsibilities leads to gradual erosion
of social power on the part of businessman.
Evolution of CSR
William C Frederick was also an influential contributor,
according to him “social responsibility mean that
businessman should oversee the operations of an economic
system that fulfils the expectations of the public and in turn
that economy’s means of production should be employed in
such way that production and distribution should enhance
total social-economic welfare”
Morrell Heald wrote book “the social responsibilities of
business: company and community” followed the old
definitions of SR
Committee for economic development (CED) found social
responsibility of business as the social contract between
business and society and in effect “business are being asked
to contribute more to the quality of life than just supplying
Evolution of CSR
Davis (1973) defined CSR as “CSR refers to the firm’s consideration
of and response to, issues beyond the narrow economic, technical and
legal requirements of the firm”. It means that social responsibility
begins where the law ends. A firms is not being socially responsible if
it merely complies with the minimum requirements of the law
Two other writers on CSR were Henry Eilbert and Robert Paker
(1973) argued that “the best way to understand social responsibility is
to think of it as good neighbourliness. the concept involves two
phases. On one hand it means not doing things that spoil the
neighbourhood. On the other hand it may be expressed as the
voluntary assumptions of the obligations to help solve neighbourhood
problems”. Thus social responsibility means the commitment of a
business or businesses in general to an active role in the solution of
broad social problems such as racial discrimination, pollution,
transportation, or urban decay.
Evolution of CSR
Prakash Sethi discussed the dimension of social performance
i.e. Social obligation, social responsibility and social
responsiveness
Social obligation is corporate behaviour in response to
market forces or legal constraints means economic and legal
only. This stage is proscriptive
Social responsibility means bringing corporate behavior up to
the level where it is congruent with the prevailing social
norms, values and expectations of performance. This stage is
prescriptive
Social responsiveness is the adaptation of corporate
behaviour to social needs. This stage is anticipatory and
preventive
Evolution of CSR
Hence four part definition of CSR came forth
CSR involves the conduct of business so that it is economically
profitable, law abiding, ethical and socially supportive
Donna J wood described three principles in late 1990s
First stated the principle of CSR (economic, legal, ethical and
discretionary) and identified how they relate to the CSR principles
of social legitimacy (Institutional level), public responsibility
(organizational level), and managerial discretion (individual level)
Second identified the processes of corporate social responsiveness
as environmental assessment, stakeholder management and issues
management
Third as the social consequences or actions as outcomes of
corporate behaviour
Evolution of CSR
Hence four part definition of CSR came forth
CSR involves the conduct of business so that it is economically
profitable, law abiding, ethical and socially supportive
Donna J wood described three principles in late 1990s
First stated the principle of CSR (economic, legal, ethical and
discretionary) and identified how they relate to the CSR principles
of social legitimacy (Institutional level), public responsibility
(organizational level), and managerial discretion (individual level)
Second identified the processes of corporate social responsiveness
as environmental assessment, stakeholder management and issues
management
Third as the social consequences or actions as outcomes of
corporate behaviour