Corporate Social Responsibility

Definisi CSR
Carroll developed the ‘Four Faces’ of CSR (Carroll, 1979) in
which the definition of social responsibility aimed to fully address
the entire range of obligations that business had for society: (i)
economic; (ii) legal; (iii) ethical; and (iv) discretionary. ‘Economic’
is described as the primary social responsibility of business to sell
products and make a profit. ‘Legal’ is the firm’s obligation to obey
the law. Although Carroll’s definition of ‘ethical’ behaviour is
unclear, it can be approximately described as society’s expectation
of business over and above legal requirements. ‘Discretionary’
covers philanthropic contributions and other non-profit activities.
 Definisi CSR
Carroll (1991) further developed the four faces
model into a pyramid of CSR that placed great
emphasis on economic, then on legal aims, and
substituted the term ‘discretionary’ with
‘philanthropic’.
 Developments in CSR-Related Concepts

Corporate
Citizenship

Triple Bottom Line

Sustainable Development

Corporate Social Rectitude

Corporate Social Performance (CSP)

Stakeholder Model
Corporate Social Responsiveness
Corporate Social Responsibility (CSR)
Business Social Responsibility/ Social Responsibility of Businessman
Business Ethics/Business Philanthropy, Charity

--1950----1955----1960-----1965-----1970-----1975-------1980-------1985----1990-------1995--------2002-------

Developments in CSR-Related Concepts

Source: Mohan (2003, p.74).
 Stakeholder theory
Stakeholder theory posits that the nature, expectations and influence of
all firm stakeholders determine firm behaviour and performance. The
firm’s relationships with its various stakeholders provides managers with
a practical focus that enables them to understand and manage the firm’s
responsibilities within the wider society.

Donalson and Preston (1995) posit that stakeholder theory has two major
ideas: (i) stakeholders are identified as persons or groups with certain
interests in procedural and/or substantive factors of firm operation.
Hence, the interest of stakeholders can be identified; and (ii) the interests
of all stakeholders are viewed as having intrinsic value.
 Stakeholder group Expectations Action (reward/penalty)
Shareholders Return on investment (ROI), CG Buying or selling shares,
and the executive compensation. shareholder activism.
Customers Price or value or quality, truthful Buying or boycotting products and
advertising. services.
Employees Benefits, safety, stimulation, equal Work effort or shirking, applying
opportunities. for employment or turnover.
Business partners Relationships sustained, payment Relationship choice/
of bills, technology transfer, maintenance/refusal or termination.
reputation protection.
Governments and regulatory Tax contribution, local economic Providing/removing social license
bodies impact, law abidance. to operate, regulations and
financial subsidies.
Local community Charity, community investment, Providing or removing social
sponsorship. license to operate, political
support.
Natural environment Sustainable materials, water or air Supply or non-supply of resources
emissions, energy efficiency, waste and sinks, support or protest by
management. representative group and bodies.
Media Media releases, public relations. Editorial support or criticism.