The Definition Of Corporate Social Responsibility In Business?

1847 Words4 Pages
bulb-icon

Recommended: Nature and concept of corporate social responsibility

While there is no universal definition of corporate social responsibility (CSR) due to differences in values and understanding, it is agreed upon that firms implementing CSR must meet the economic, legal and ethical expectations that any society has of the firm at a given point in time (Saeidi et al., 2015, p. 342). In simple terms, corporate social responsibility refers to the efforts of a firm to conform to business practices that result in a long-term economic, societal, and environmental well-being (Du, Bhattacharya & Sen, 2011, p. 1528). It emphasizes on the notion of ‘doing well by doing good’ by stressing upon the idea that profit is only a byproduct of business and not the end goal and that the purpose of business organizations go beyond …show more content…

1528). Firms can integrate CSR into the business operations in three ways: they can ‘do good’ by undertaking a project devoted to a philanthropic cause, they can ‘avoid bad’ by averting from acts that cause harm to any section of a community, in turn, retaining their company reputation or they can ‘be successful’ by using CSR to their competitive advantage and as opportunities to create a shared value (Martinuzzi & Krumay, 2013). ‘Doing good’ is one of the most common ways in which business operations implement …show more content…

According to this notion, corporate social responsibility leads to a better firm financial performance. While this direct relationship between corporate social responsibility and the firm financial performance has been examined repeatedly with results pointing to a positive relationship, this direct test is vague and invalid (Saeidi et al., 2015, p. 341). According to a study by Saeidi et al. (2015), competitive advantage, corporate reputation and customer satisfaction are the three mediators in the relationship between CSR and firm performance. Customer satisfaction leads to customer loyalty, causing customers to buy the products offered by the firm more frequently and consistently high customer satisfaction over a long period of time strengthens the corporate reputation and leads to higher sales growth and higher returns on assets, working wonders for the financial status of the firm (Saeidi et al.,

Show More
Related

  • Adam Lindgreen And Valerie Swaen's Article: Corporate Social Responsibility

    881 Words  | 2 Pages

    ​Corporate Social Responsibility (CSR) is a movement that aims to promote a greater awareness of how business activities and decisions influence corporate environment, stakeholders, and society in general. Adam Lindgreen and Valerie Swaen’s article “Corporate Social Responsibility” addresses this broad topic in a more narrow direction of CSR implementation as it discusses the most important stages of this process. While this article relies only on the previous research, it provides unique insights into CSR and even challenges the common views of this concept as the authors thoroughly analyze their secondary sources.

    Read More

  • The Top Three Competitiors of the American Repertory Theater

    807 Words  | 2 Pages

    Corporate Social Responsibility is the obligation from corporations to utilize their resources to aid and benefit the larger society. The four components of CSR are economic, legal, ethical, and philanthropic. Social Responsibility is a fundamental force in the wealth creation process. If correctly demonstrated, CSR should heighten competitiveness and boost the value of wealth creation to society. A company's CSR Initiatives directly represent who the company is and what it believes it. The m...

    Read More

  • Corporate Social Responsibility

    1700 Words  | 4 Pages

    In recent years, companies are becoming socially responsible and now stakeholders almost expect a company to have CSR policies. Therefore, in twentieth century, corporate social responsibility (CSR) became an important development in public life (Barnett, ND).Corporate social responsibility is defined as “the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance” (Johnson, Schools and Whittington, N.D cited in March, 2012). Stakeholders can be defined as “those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Schools and Whittington, N.D cited in March, 2012). There are many purposes for this essay, the first purpose is to descried the key principles of corporate social responsibility and explain their importance for stakeholders. Secondly, is to show how far this company follows those principles in order to be accountable to at least three of its stakeholders. In this essay, three stakeholders, environment, customers and employees will be evaluated respectively and the key principles of the stakeholders will be examined.

    Read More

  • General Electric's Corporate Social Responsability

    1774 Words  | 4 Pages

    According to Mike Peng, Corporate Social Responsibility (CSR) is the consideration and response to issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with traditional economic gains the firm seeks. CSR is a way in which a company seeks to achieve a balance between profit, environmental concerns and social imperatives. This is known as the ‘Triple-Botto...

    Read More

  • Corporate Social Responsibility Analysis: Wells Fargo

    958 Words  | 2 Pages

    An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.

    Read More

  • The Importance Of Corporate Leadership

    1504 Words  | 4 Pages

    Werner (2009) points out, corporate social responsibility (CSR) initiatives--may be able to positively affect social status, earning potential, access to services, and resources for socially excluded populations. Leaders that are social responsible can influence the organization and the environment around it in a positive way. Organizations such as Enron was proven and perceived as unethical and a negative factor on the economy. The perception of an organization that has a leader, who is corporate social responsible, can help improve a poor economy. Werner points out; CSR is meant to address a problem by addressing any negative value-chain impacts while supporting the business strategy and the needs of the community. CSR can be a strategic tool that is effective in creating a positive image for the

    Read More

  • The Importance Of Corporate Social Responsibility

    803 Words  | 2 Pages

    Corporate Social Responsibility is a nature of a business to behave well and produce a general positive impact on society. This term was first generated in 1953 by H.R.Bowenes while widely considered as an important subject for business especially large firms who perceive CSR report equally as financial report, both of which are the topics the stakeholders or owners are interested in. In reality, Firms are not forced to behave as the public want to be because the CSR is quite ambiguity that we don’t know what the firms are responsible for and how far should this responsibility be. Firms before doing CSR may take a lot of considerations as this would be a cost to business if something went wrong or could be a benefit to profit when something is actually done and customers are aware of it. Thus, a theory introduced called the Triple Bottom Line by John Elkington gives an idea about balancing doing CSR and achieving market profit.

    Read More

  • Corporate Social Responsibility

    1898 Words  | 4 Pages

    Blowfield, 1995 indicates that through time, the definitions and explanations of CSR have become more positive, with increasing understanding of the benefits that can be obtained through successful implementation by organisations. Pendleton (2004) suggests that the first CSR initiatives were a response to public pressure and media exposes of poor company behaviour. The aim of CSR was to show these people that companies were capable of cleaning up their act. Pendleton (2004) suggests that “contemporary CSR was christened by Shell in it’s response to it’s annus horribilis of 1995.” Monshipouri, Welch & Kennedy (2003) also outline this issue as a key turni... ...

    Read More

  • Responsibility Strategy Of Tesco

    907 Words  | 2 Pages

    Corporate social responsibility (CSR) can be considered as a concept defining how companies integrate social and environmental concerns in their business operations and how they interact with stakeholders on a voluntary basis ([18] EC, 2010). [61] Spence and Bourlakis (2009) argued that the UK Government discourse on CSR focused on voluntary practices rather than government intervention namely that corporate responsibility (CR) is the voluntary actions that an organisation can take, over and above compliance with minimum legal requirements, to address both its own competitive interests and the interests of the wider society(Ibrahim,

    Read More

  • Article Review: The Importance Of Corporate Social Responsibility

    1093 Words  | 3 Pages

    A corporations CSR should be shaped in order to fit the goals of the corporation, although every corporation’s CSR should differ, since most have different goals and different communities behind them. The CSR should be molded into fitting the corporation’s goals in order to make it easier on the corporation in giving back to the community while achieving its goals. For example, a corporation located in a desert wishes to be more efficient, by reducing water usage it is not only creating lower costs, which result in higher revenue, but also helps the community by not taking up so much water. Taking this into consideration, it is critical that the corporation goals and values are established and clear throughout the corporation, they should be developed by the board or directors and CEO, and the highest managerial level should stress their importance to the rest of the corporation. By making the goals and values at the top branch of the corporate hierarchy, it will be simpler for the corporates community to develop in order to nurture those goals and values. Therefore, a corporation can reach the “shared-value,” a value for both its shareholders and community in a simpler manner that can result benefiting the corporation in the end as well. Throughout the article many examples are given of actual corporations that have benefited and changed their CSR in order to fit their goals, therefore, providing solid proof that these methods work. Nevertheless, as acknowledged by the author’s themselves, most of the corporations taken into consideration where one’s that Harvard CSR students were employed

    Read More

  • Corporate Social Responsibility

    1916 Words  | 4 Pages

    The classical view of CSR is a prominent ideology which business organizations are seen merely as profit-driven organizations. Simply put, businesses work for the sole purpose of making a profit. Thus, this profit motive is the sufficient and unique social identifier that separates a business organization from other institutions in society. These business organizations have a limited, yet essential role in society. Social concerns are considered important, but businesses, in the classical view, are focused solely on the economic activities and are judged accordingly. By having a limited role in society (i.e.,...

    Read More

  • The Relationship Between Corporate Social Responsibility And Ethic At The Leadership Level Of Companies

    1565 Words  | 4 Pages

    How an organisation approaches the social and environmental impacts of its business operations and its voluntary contribution to the wellbeing of the global and local communities in which it operates, is often known as Corporate Social Responsibility (CSR); it is often about "doing ethical things".

    Read More

  • What Are The Advantages And Disadvantages Of Corporate Social Responsibility

    733 Words  | 2 Pages

    Corporate social responsibility is a term used by business which tells us that business has a responsibility with great percentage of interest in which business is integrated social and environmental concerns in routine operations which includes stakeholders for instance employee, suppliers, customers or communities. It is said that CSR is commitment to improve the society by the business practices and corporate contributions (Lee, 2005). CSR in simple words can be described as where businesses help or show sign of interest in helping stakeholders fairly with their lives and trade. Some have saying that responsible business is business which take interest in stakeholder’s life by helping them because it comes under the law. (McWilliams & Siegel, 2000).

    Read More

  • Importance Of Corporate Social Responsibility

    1000 Words  | 2 Pages

    It is important to understand the importance of corporate social responsibilities. If Corporate Social Responsibility is properly maintained and emphasized by companies, it can benefit the society, economy and corporate sustainability. It can also be cost efficient to companies. also the environment . But above all effect (CSR) varies companies to companies. Where some corporates seem to make all sorts of benefits from their coporate social responsibilities but few of them are also having loss by trying to maintain CSR without properly evaluating their resources. (Porter and Kramer 2006) has said The inferences where corporates need to evaluate their CSR actions to figure out if they add

    Read More

  • Essay On Corporate Social Responsibility

    1275 Words  | 3 Pages

    Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society. Moreover, Corporate Social Responsibility has a definition of a concept where the companies integrate social and the environmental concerns into their own business operation and also on a basis of voluntary with their interactions they have with the stakeholders. Corporate Social Resp...

    Read More

More about The Definition Of Corporate Social Responsibility In Business?

Open Document