Back to: BUSINESS ETHICS
Corporate Social Responsibility (CSR) Definition
Corporate social responsibility refers to self -modifiable business exemplary that enables the company to be liable to the community, including itself and the participants/sponsors. Companies can be aware of the kind of influence they have on community aspects by practicing corporate citizenship. Community aspects include; physical features, monetary and social features. When a company takes part in CSR, it is able to avoid negative impacts on the community and its surrounding but instead, operate in a manner that improves the community and the surroundings.
A Little More on What is Corporate Social Responsibility (CSR)
CSR is a wide theory that affects a company in different parts including its organizational advancement, company’s administration and its effects on the community and its surroundings. Community organizations are not only big companies but also the Small firms and entrepreneurs. The company’s roles and different constraints affect the applicability of CSR in which the area doings grows to the scope of the environmental region where it runs its activities.
Five elementary ethics oversee the CSR in cases where certain obligations and ethics out to be shared.
- The company should adhere to the present global ethics and the state’s laws and regulations, which means that the entrepreneurs, small firms and the big organizations all must observe the state laws of the area in which it runs and present worldwide terms such as Human Rights treaties or International Labor Organization (ILO).
- An international appeal should be considered to comprehend that CSR impacts all fields and progressions that entail the industry doings, if the firm is a large company that runs in diverse nations.
- The CRS obligates nations that adhere to certain principle obligations
- Influences created from corporate itself, publicly or communally, financially and in physical surroundings demonstrate the CSR.
- CSR should be focused on meeting the desires and outlooks of individuals engrossed and also provide enough data.
Advantages of CSR to an Organization
CSR in whichever the corporate aspect or locality has a lot of advantages in that; it encourages discipline in work environment, accountability in matters of physical surroundings and typical weather variations and high opinion for employees and other stakeholders
Now, CSR can favor corporations, small businesses or the self-employed in this way:
- The marketing, social and job morals enhance the reputation of the firm. These aspects must always be made available in both social media and the web.
- It boosts the clients’ trust and high approval to excellent and viable good.
- Viable doings in a company and security of staffs’ wellbeing all contribute to an upgrade of the work surroundings and more output.
- The viability of self-governing corporate in the extended period, in finances, vigor and community matters.
Companies may not want to engage in CSR in cases where advertising of a brand social image doesn’t tally with the rules of CSR
Lastly, CSRs will no longer be regarded as donations made to NGOs
References for Corporate Social Responsibility
Academic Research for Corporate Social Responsibility
- Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication, Du, S., Bhattacharya, C. B., & Sen, S. (2010). International journal of management reviews, 12(1), 8-19. The article is discussing CSR and how it can not only improve stakeholders perception towards the firm but also advocate for the company. However, stakeholders’ negative attributes towards companies’ CSR activities hinder the firm’s attempt to benefit from their CSR. This, therefore, calls for a company to clearly communicate its CSR to stakeholders so that those CSR become effective. Once it is well communicated then the firm will maximize its returns.
The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders, Carroll, A. B. (1991). Business Horizons, 34(4), 39-48. The author uses an empirical model of household supply of manpower by looking at the wages of wife and husband. Here, Dutch couples are used as panel data to approximate the effects. In conclusion, the approximations enable the author not only to understand individual preference but also the rules that guide the division of household income between couples
Corporate social responsibility (CSR) in Asia: A seven-country study of CSR web site reporting, Chapple, W., & Moon, J. (2005). Business & society, 44(4), 415-441. The paper talks about 4 hypotheses which are investigated by the analysis of web site reporting of 50 firms coming from Asian countries like Malasia, South Korea, Thailand, Singapore etc. It concludes that the CSR does vary in these countries and that multi nationals are likely to adopt CSR unlike those operating in their countries
“Implicit” and “explicit” CSR: A conceptual framework for a comparative understanding of corporate social responsibility, Matten, D., & Moon, J. (2008). Academy of Management Review, 33(2), 404-424. This work is concerned with comprehending the reason why CSR vary in different countries. Two schools of thought are used to understand first, the distinction between CSR in the USA and Europe and secondly, the rise of CSR in Europe.
Corporate social responsibility (CSR): Theory and practice in a developing country context, Jamali, D., & Mirshak, R. (2007). Journal of business ethics, 72(3), 243-262. Various theories and models were studied to investigate the CSR approach and philosophy of 8 firms in Lebanon that are active in CSR. The writer establishes that lack of a focused and a systematic approach to CSR has left it to be merely for philanthropic purpose in these developing countries
The link between competitive advantage and corporate social responsibility, Porter, M. E., & Kramer, M. R. (2006). Harvard business review, 84(12), 78-92. The article informs us about how various institutions like government and media have held firms to account for their social actions.CSR is counterproductive in nature because they set business against society and pressure firms to think of CSR. The current methods used for CSR have been lacking strategies that can benefit society. If only companies could take CSR seriously like in the case of their core businesses. CSR must not only be viewed as a charitable affair but must also be viewed as an innovation source offering a competitive advantage. This article also introduced a framework that individuals could use to pinpoint their actions. In conclusion, CSR must be viewed as an opportunity and not as a PR tool.
Corporate social responsibility: Evolution of a definitional construct, Carroll, A. B. (1999). Business & society, 38(3), 268-295. The author is trying to establish how CRS came up starting from 1950s which symbolized the new era of CSR. Definitions were improved in the subsequent years until the 1980s when alternative themes like Corporate Social Performance (CSP), stakeholder theory and business morals emerged. CSR improved for the better in the 1990s to date.
Corporate social responsibility: A theory of the firm perspective, McWilliams, A., & Siegel, D. (2001). Academy of management review, 26(1), 117-127. The paper tells us about the demand and supply model of CSR. A Company’s degree of CRS will be influenced by factors like firm size, advertising, government sales, consumer income, and level of diversification amongst others. From that hypothesis, we can summarize that there is a balanced link between financial performance and CSR.
The effect of corporate social responsibility (CSR) activities on companies with bad reputations, Yoon, Y., Gürhan‐Canli, Z., & Schwarz, N. (2006). Journal of consumer psychology, 16(4), 377-390. The article talks about how CSR enhance the firm outlook if consumers have sincere intentions while ineffective when the motives are dishonest which interfere with the company image. Perceived sincerity is affected by factors like benefit silence, where consumers learn about CSR, CSR contribution and CSR advertising. High benefit silence can be avoided by allocating more on CSR activities than CSR adverts.
Corporate social responsibility, Holme, R., & Watts, P. (1999). Geneva: World Business Council for Sustainable Development. The author here defines CSR as the constant focus of the firms not only to act morally but also improve the lives of their workforce and the community.
Consumer responses to corporate social responsibility (CSR) initiatives: Examining the role of brand-cause fit in cause-related marketing, Nan, X., & Heo, K. (2007). Journal of advertising, 36(2), 63-74. The article, through a controlled experiment indicates that an ad with Cause Related Marketing (CRM) message compared with the same one without CRM message, shows more conducive consumer attitude towards the firm irrespective of the class of fit between social cause and sponsoring brand. In general, consumer attitude towards the brand is always very favorable