This might lead to decreased shareholder value and a diminished stock price. Also, there would be increased litigation and related legal costs on various social and environmental issues, a decreased customer loyalty, and a loss of customers and/or stakeholder support due to the negative publicity. Corporate social responsibility is an important tool for a developing economy to ensure that the growth is evenly distributed amongst all. By helping to increase the quality of living of our society as a whole, CSR entails many positives to a business. It is the focused actions of a corporation that desires to do well while simultaneously doing well for the community, the society, the environment and all aspects with respect to general human well-being.
Many large corporations are devoting serious time and money to environmental sustainability programs and various social welfare initiatives that would benefit employees, customers and the community at large. CSR is about building trust. Trust in the brand, the employee, the company to “do the right thing” and trust in the product or service. The task of CSR is to prevent morally guilty practices, which can weaken soci... ... middle of paper ... ...r.com. Ogilvy Public Relations, 2014, 22 Mar 2014.
Corporate Responsibility Corporate Social Responsibility is looked at as corporate citizenship, or responsible business. It is an organizations example adopted by businesses that want to improve their organizations, communities and more. It is a self regulating system that makes the organization commit to follow the laws of business and maintain a high ethical standard. Many times, corporate social responsibility results in businesses committing themselves to certain social goods, or even an attempts to approve the environment. Corporate Social Responsibility is a organizations promis... ... middle of paper ... ...ut will ultimately have a effect on the world.
Definition of CSR General definition of CSR: Corporate Social Responsibility (CSR) is a concept by which organizations take the interests of society into consideration by holding themselves responsible for the consequences of their activities to the environment, the community, their customers and employees affected by all the operations of their business. This responsibility normally goes beyond that required by law. The resulting tendency is that of organizations actively and voluntarily helping their employees and the local and wider community to improve their quality of life. Corporate Social Responsibility relates to a business long-term approach that addresses the needs of communities, people and their employers. CSR provides to sustainable development by delivering economic, social and environmental benefits for all stakeholders.
Corporate social responsibility (CSR) is the consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains which the firm seeks. (Peng, 2012). According to World Business Council for Sustainable Development (WBCSD, 1999), CSR is an organization’s commitment to a discretionary behavior that leads to economic development and contributes to the welfare of its employees, local community and society at large. (Ilona, Kazlauskaite, 2011). Corporate Social Responsibility (CSR) has become very important in that it become a strategic issue that spans across various departments of a firm.
As the world become more globalized and civilized, it is important for any company to contribute to do the social responsibility beside their main purpose of making profits (Erhemjamts, Li, & Venkateswaran, 2013; Otubanjo, 2013). This paper aims to provide a description of corporate social responsibility (CSR) associating with its tremendous effects on international business both positively and negatively. In addition, the paper as well contains discussion about both shareholder’s and stakeholder’s point of views on corporate social responsibility as there have been quite a few controversial about their benefits when implementing CSR. Finally yet importantly, the research will examine several difficulties and counterpart ones of any international organizations wanting to apply CSR in an effective way in Vietnam. Corporate social responsibility is generally known by Western countries as a desire of a corporation to contribute to stakeholders beyond their duty, to be specific, the manner of treating the employees, the extra benefits for the customers and community in general.
In recent years, there have been a growing number of companies that have an explicit Corporate Social Responsibility (CSR) plan. As stated by European Commission (2001), CSR is defined as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.” It is believed that the motives for CSR are gradually converting from philanthropic rationale to performance-driven orientation, but the question of better company performance resulting from the implementation of CSR has often been the centre of debate. The purpose of this paper is to examine how CSR can positively contribute to company performance, which refers to the quantitative values such as profits and stock price. This paper begins by reviewing how investors and managers perceive CSR as a value-creating tool. It will then go on to discuss how CSR helps to build employer-employee relationship and customer loyalty.
However, there can be more definitions about what Corporate Social Responsibility can be. For example, Corporate Social Responsibility can be the commitment which is continuing for a business to behave ethically and bring to economy the development to improve the workforces’ of the whole society and local community and their families’ quality of life. Corporate Social Responsibility is also known as the obligation of a company to serve the society’s interest and of course its own. With the help of the Corporate and Social Responsibility, social and environmental concerns companies can integrate into their business and stakeholders operations. Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society.
Corporate governance should put policies and regulations in place for multinational companies that is rewarding for the benefit of the company. Such policies can include benefit packets (retirement compensation, insurance benefits) trading policies, and employee compensations. It’s proven that if employees have reward programs or incentive to motivate them to work hard. According to researcher Thompson and Richter, “for multinational companies to remain global, multinational companies should design reward programs. Corporate governance has to come up with designer program for global employee.
The Concept of Corporate Social Responsibility With the interest in Corporate Social Responsibility growing, increasing numbers of organisations are incorporating CSR into their business operations in an effort to be seen acting as good corporate citizens, so what is CSR & what is it's role in today's organizations? The term CSR refers to a company?s obligation to maximize its positive impact on society, accommodating changing social, market & stakeholder pressures in an effort to achieve sustainable economic, social & environmental development throughout its operations and activities. CSR puts expectations, continuous improvement & innovation at the heart of business strategies and the four dimensions of social responsibility are generally considered to be economic, legal, ethical & philanthropic. Approaches to CSR are varied and due to the differences in priorities & values across the world, there is no "one size fits all" strategy. Where previously, the role of a socially responsible company was simply to create good will in the community, organisations are now required to take into account the full scope of their impact on communities & the environments in which they work, balancing the needs of stakeholders with the need to make a profit.