Socially responsible firms are defined as firms ... ... middle of paper ... ...SIBILITY AND CORPORATE GOVERNANCE. Economic Affairs, 29(4), 5-10. doi:10.1111/j.1468-0270.2009.01940.x Llopis, J., Reyes Gonzalez, M. M., & Gasco, J. L. (2007). Corporate governance and organisational culture: The role of ethics officers. International Journal of Disclosure & Governance, 4(2), 96-105. doi:10.1057/palgrave.jdg.2050051 Kanji, G. K., & Chopra, P. K. (2010). Corporate social responsibility in a global economy.
It will then go on to discuss how CSR helps to build employer-employee relationship and customer loyalty. Companies with CSR initiatives have better access to finance in capital markets that is essential for firms to produce goods and generate profits. Earlier study by Mcguire, Sundgren and Schneeweis (1988) reports that contributions to the environment and society are an important factor when banks and institutional investors are evaluating investment opportunities. Moreover, enterprises pursuing CSR practices tend to widely publicize their socially responsible behavior and thus become more transparent and understandable. Higher levels of transparency minimize the asymmetric information between the company and investors so investors become less aware of the risks associated with the investment projects (Cheng, Ioannou, & Serafeim, 2014).
Then an outline of the role management plays in the incorporation of socially responsible attributes to a corporation will be expressed, evidence to suggest that ?if this means that there a social contract that requires business to honour a moral bare minimum, then a business manager is duty-bound to obey it? (Bowie 1991: 56-66). This essay shall also investigate some of the classical theories of CSR and its contribution to profit maximisation. Finally, some specific arguments that state that the introduction of social responsibility is not a good idea and how it has failed to create the ?good society? (Friedman 1970: 122-126) will be discussed.
Williams (2011) stated that CS... ... middle of paper ... ...013). Evolution of the concept and definition of corporate social responsibility. Paper presented at the , 8(2) 113-118. Retrieved from http://search.proquest.com/docview/1434203570?accountid=63189 Tencati, A., Russo, A., & Quaglia, V. (2010). Sustainability along the global supply chain: The case of vietnam.
& Bhattacharya, C. (2006). Corporate Social Responsibility, Customer Satisfaction, and Market Value. Journal of Marketing, 70(1), 1-18. Maignan, I. & Ferrell, O.
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.
(1979), A three-dimension conceptual model of Corporate Social Performance. Academy of Management Review, 4, 497-506 Daniels J. D. and Radebaugh L.H. (2009), International Business: Environment and Operations, Prentice Hall Davis, K. (1960), Can Business Afford To Ignore Social Responsibilities? California Management Review, 1960, pp.70-76 Griffin, R. W. and Pustay, M. W. (2007), International Business: A Managerial Perspective, Prentice Hall, London. Galbreath, J.
Definition of CSR Nowadays corporate social responsibility (CSR) is playing an increasingly important role in discussions of branding and corporate strategy. CSR began its evolution from the definition of sustainable development and the concept of the Triple Bottom Line (TBL) elaborated by John Elkington. The author proposed that business goals were inseparable from the societies and environments within which they act. A business can achieve short-term economic gain, but a failure to account for social and environmental dimensions would result in making those business practices unsustainable (Elkington, 1999). Then the concept of CSR began to actively evolve and many views on what CSR should be emerged.
Welford, R. and Chan, C. and Man, M. (2007) Priorities for Corporate Social Responsibility: a Survey of Businesses and their Stakeholders, Corporate Social Responsibility and Environmental Management.15, pp.52-62. Windsor, D. (2006) Corporate Social Responsibility: Three Key Approaches. Journal of Management Studies 43, Blackwell Publishing Ltd, 1 January 2006, pp. 93-114. Witt, M. A. and Redding, G. (2012) The spirits of Corporate Social Responsibility: senior executive perceptions of the role of the firm in society in Germany, Hong Kong, Japan, South Korea and the USA, Socio-Economic Review (2012) Vol.10, pp.
The main change introduced by CSR approach has to do with the understanding of the context as a constitutive element of economic activity success, affecting the costs and profits of the firms. Two complementary perspectives can be identified: the Stakeholders approach and the Competitive Advantage approach. For the former, stakeholders built an `organic´ relationship with the firm, becoming central players for business performance in the sense that `… can influence firms outcomes´ (Ibid: 3) and affect or be affected by corporate actions (Garriga and Mele 2013: 80). Regarding the competitive advantage approach, CSR policies become a mechanism of differentiation of products and services of the firms; hence, social and environmental initiatives are perceived as strategic investments in the mid and long term (McWilliams et al. 2006; Husted and Halen,