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The Importance Of Corporate Social Responsibility

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Increasingly accepted as a fundamental practice, Corporate Social Responsibility (CSR) remains an ambiguous concept, with no clear-cut definition (Tench et al., 2012:6) and systemic conceptual framework (Carroll, 1999). The discipline is synthesised as a corporation’s obligation to contribute to the welfare of the society as well as the organisation (Daft et al., 2010:134). Briefly, CSR encompasses corporate practices that operationalise the relationships with and impacts on stakeholders and the environment (Waddock, 2004:9). While the perspective entails voluntariness (CEC, 2001), there is an established business case for CSR. Literature recognises CSR profitability in the long term, especially in the form of brand loyalty, employee satisfaction, or operational efficiency (Pivato et al, 2008). CSR positively affects economic performance, employee engagement, and reputation management (Orlitzky et al., 2003; Xueming and Bhattacharya, 2006; Sen et al., 2006:164). In summary, two fundamental notions emerge. Firstly, CSR implies the intrinsic recognition of ‘a large and integrated set of stakeholders’ (Cochran, 1994). From Friedman’s mere profit-generating function (1970:33), CSR introduces economic, legal, ethical, and discretionary corporate responsibilities (Carroll, 1979:500). Secondly, corporations find a strategic interest in pursuing CSR. From one hand, voluntariness relates to a search for legitimacy and compliance with legal and ethical requirements, nominally Donaldson and Dunfee’s (1999) ‘license to operate’. From the other, pursuing CSR may bring advantages, epitomised by Key and Popkin as‘doing well by doing good’ (1998). Thus, CSR appears double-edged. CSR is considered a necessary tool that, however, due to the conn... ... middle of paper ... ...d, UK:473–479.. Waddock, S. (2004).Parallel Universes: companies, academics, and the progress of corporate citizenship. Business and Society Review, 109(1):5–24 Wanderley, L. S., Lucian, R., Farache, F., and De Sousa Filho, J.O. (2008) CSR Information disclosure on the web: A context-based approach analysing the influence of country of origin and industry sector. Journal of Business Ethics, 82:369-378. Whitehouse, L. (2006) Corporate social responsibility – views from the frontline, Journal of Business Ethics, 63:279-296. Würtz, E. (2004). Intercultural communication on websites, In Sudweeks, F. and Ess, C. (2004) Cultural attitudes towards technology and communication, pp. 109-122. School of Information Technology Xueming, L., and Bhattacharya, C.B., (2006). Corporate social responsibility, customer satisfaction, and market value. Journal of Marketing, 70 (4):1-18
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