· This page of the essay has words. Download the full version above. Usually CSR and sustainability use to signify the same thing but conceptually there are slight difference as CSR focus on triple bottom lines i.e. economic, social and environmental responsibility while sustainability emphasis to societal and environmental development. The purpose of establishing CSR into core Estimated Reading Time: 6 mins “Ethics can be defined in business terms as the moral principles that govern an organisation’s behavior or code of conduct in their operations (Rosamund, )”.“Corporate social responsibility can be defined as a business approach that contributes to a company’s responsibility on its effects on environmental and social wellbeing (Rosamund, )” Essay # Concept of Corporate Social Responsibility (CSR): The corporate sector has responsibility towards its own business entity, shareholders as well as towards society. Thus every corporate unit must have a responsibility for the upliftment of society which is broadly considered as Corporate Social Responsibility (CSR).Estimated Reading Time: 4 mins
Words Essay on Corporate Social Responsibility
Corporate Social Responsibility is a rapidly developing, key business issue. It is a concept csr essay has attracted worldwide attention.
Due to the demands for enhanced transparency and corporate citizenship, CSR csr essay to embrace social, csr essay, ethical as well as environmental challenges. Today, companies are aware of the social and environmental impacts of international production. It is accepted that Companies should not be only profitable, but also good corporate citizens, csr essay. Through globalization of the economy, multinational companies are increasingly involved with suppliers and customers worldwide, csr essay, especially if they operate in developing countries.
The CSR agenda has a close relationship with international development. CSR within multinational companies is seen as a vehicle through which larger, well known corporations can contribute to the well being of developing countries by operating responsibly in terms of social and csr essay issues.
As reality shows, most of the csr essay corporations abuse the CSR and behave unethically and irresponsibly towards both society and the environment. Issues such as unsafe working conditions, unfair payment, gender discrimination, csr essay, sexual harassment, toxic emissions and the hazardous pollution of water and soil have all raised fair allegations by consumers, non-governmental organizations and the larger society.
Famous global brands like Nike, Coca-Cola, GAP and McDonalds are often under intense pressure from the public, csr essay. Much of those pressures are due to their unethical behaviour in developing countries, where their main operations take place. Though companies operate in host countries, csr essay, their reputation extends across numerous national boundaries, csr essay.
The actions of multinational companies in a host country can cause significant loss csr essay reputation in the developed world, where the general public have become more sensitive to environmental issues and social impact. The public have the power to boycott the goods and products of multinational corporations in cases of unethical behaviour where organisations are thought not to fulfil their social and environmental obligations.
However, international reputation side effects are not the only reason behind the potential increased level of social and environmental responsibilities faced by multinational companies; there are many drivers for the correct implementation csr essay CSR by business entities.
However, for many companies, corporate reputation and brand image are the fundamental components of business success. Corporate Social Responsibility in developing countries represents the formal and informal ways in which multinational business enterprises contribute to improving the social, ethical and environmental conditions of the developing countries in which they operate.
However, the rational approach to the CSR in the developing world is different from CSR in developed countries. For example, developing countries represent the ongoing growth of the economy; hence the most attractive growth markets for many foreign companies. They provide cheap labour, an absence of strong regulations and a rich availability of resources; all crucial concerns for multinational enterprises for conducting their businesses in developing world.
It has been found that the public and the government are not as critical of unethical business practices within foreign companies. In addition, developing countries csr essay where globalization, economic growth, investments and business activities are likely to have both positive and negative social and environmental impacts.
Therefore, developing countries represent a different set csr essay CSR agenda for multinational companies to those operating in the developed world, csr essay. In this research paper the CSR practices of multinational corporations will be examined. Their CSR commitment as well as irresponsible practices will be highlighted, csr essay. In the first chapter, there will be overview on the previous works in this field. As CSR is a new concept, especially in developing countries, the short history of the development of CSR and main contributions will be presented.
Literature review will give us the background knowledge about CSR. In chapter two, research methodology and relating this csr essay the subject matter will be discussed. The examples of their commitments towards environmental and social sustainability as well as negative impacts caused by their unethical operations will be provided. The well known multinational companies like Nestle, Nike, KFC, Apple iPod and many others will be examined for their irresponsible and unethical behaviour in developing countries such as China, csr essay, Indonesia, India, Southeast Asia and Africa.
For the main research point the Coca-Cola crisis in India has been chosen, as Coca-cola, despite its CSR commitment towards society and environment, has caused damages to both the community and environment where it operates. From the case study, we are able to make some conclusions regarding CSR practices and make suggestions and recommendations for future of Corporate Social Responsibility, as it will undoubtedly increasingly become a major issue and integral part of business practise.
The 21st Century has seen much advancement in the issue of corporate social responsibility CSRand there has been particular interest in the impact CSR could have globally.
This literature review will begin by defining what is meant by corporate social responsibility. There are a lot of debates about the origins of CSR; however it is clear that CSR csr essay a modern term, a consequence arising from the history of business responsibility.
This has created a number of definitions of CSR. This can lead to confusion making CSR less effective. It is interesting to observe that none of the definitions actually defines the social responsibility of businesses, csr essay, as so famously discussed by Milton Friedmanbut rather describe it as a phenomenon.
The Government sees CSR as a business contribution to sustainable development. However, csr essay, the modern concept of CSR has been influenced by Globalization and so CSR has developed and is taken in different context worldwide.
Crane, csr essay, Matten, Spence, In addition, organizations such as the European Union EU see CSR as a concept integrating social and environmental concerns in business operations and in their interactions with their stakeholders on a voluntary basis.
There are a csr essay of debates raised in academic literature csr essay the issue of to whom the business must have responsibility. Various authors have referred to the common approaches: shareholder, stakeholder and societal approaches. According to shareholder approach, the classical view on CSR maximizing the profits of shareholders Friedman, csr essay, This approach can also be interpreted as being that the company should make contributions to the extent, to which it can be connected with the creation of long-term value for the shareholders Foley, The last approach, which is regarded to give the broader view on CSR, argues that the organisations should be responsible to societies as a whole, csr essay, of which they are an integral part.
The aim csr essay the following literature review is to identify the most valuable academic studies and important practical investigations, csr essay. The field of Corporate Social Responsibility can be divided into several parts; definitions of CSR, analysis of CSR approaches, CSR in supply chain, CSR in developed countries as well as in developing ones, the link between CSR and globalization and last, but not least the global understanding of CSR. The development concept of Corporate Social Responsibility CSR has been carried out mainly in western countries; particularly in United States.
Literature picks up the issue from the s when attention was devoted to the responsibility of businessmen Bowen, csr essay, to the s when the argument with stakeholder theory took place. Freeman, and of course, csr essay, to the s when most studies were devoted to the analysis of the relationship between CSR and corporate financial performance Roman et al, csr essay, In the beginning of the s, Howard Bowen tried to give rational and systematic arguments in favour of CSR and its connection with big corporations and their influence on social consequences and undoubtedly, their primary societal responsibilities.
Bowen argued that social responsibility is not panacea for all business csr essay problems, but that it contains an important truth that must guide business in the future Asongu, The decade of the s is characterized as seeing a growing interest in the formalizing or more precisely, defining the meaning of CSR. One of the prominent writers in this period was Keith Davis, who later extensively wrote about the topic in his business and society textbooks, csr essay, later revisions and articles.
He argued csr essay social responsibility is a nebulous idea, but should be seen in a managerial context Mahon, Another influential contributor to the early research into CSR was Friedman. In the s there are a wide range of references, increasingly being made to corporate csr essay responsiveness, corporate social performance as well as corporate social responsibility.
In the 90s, literature tried to find out answers to questions such as why some companies csr essay doing well and if CSR csr essay be identified as a competitive advantage. Most academics and scholars started to apply the stakeholder theory to CSR, because stakeholders, other csr essay shareholders have interest in the well-being of a company in relation to employees, customers, governments and others.
This model renewed the interest in CSR and more research was devoted to this subject. Also, there is great interest in the linkage between CSR and corporate competitiveness; csr essay bbbthere is a shortcoming of quantitative translation of socially responsible practices into specific results affecting the income and loss of particular organization Murillo and Lozano, Many scholars connect CSR with the competitive advantage that a company can gain. Further development in this area was made by Kramer We know very little about CSR initiatives and undoubtedly, there are some questions about both the efficiency of CSR approaches and the tangible benefits for stakeholder groups.
Also, we know very little about the social and csr essay impacts of CSR initiatives. For example, many business schools analyzed and devoted their works to studying the content of codes of conduct. They looked at specific issues such as child labour, but they failed to study the wider societal impacts of CSR. The most notable study about societal impacts came from development study scholars, not from business schools.
The study by Barrientos and Smiths reviled that there are, in particular in those countries where empirical investigation took place such as South Africa, India, Vietnam and Costa Rica, csr essay, some benefits from codes of conduct and initiatives implementing CSR by multinational companies. However there are failures in the areas of noncompliance and ensuring the improvement of working conditions.
In addition to this, Barrientos and Smiths questioned the methods used by the business communities in investigating the societal impacts of CSR, csr essay, doubting the efficiency of the tools used to monitor CSR performance, csr essay.
Due to the csr essay of empirical study and evidence regarding CSR impacts, there are still analytical limitations in the current CSR field.
For example, some academics Lantos, wrote about conceptualization of CSR, however, csr essay field of CSR and business scholars fail to answer vital questions. For example, how can CSR tackle a development challenge like poverty, without an understanding of csr essay negative influence caused by multinational companies operating in host communities?
Even if there is agreement about societal csr essay of CSR initiatives, there is still uncertainty about the way in which CSR should be studied and analyzed. Lockett, csr essay, Moon and Wisser argued that CSR knowledge should be best described as a continuing state of emergence. Indeed, many scholars study CSR initiatives without any reference to theoretical perspectives, csr essay.
For example, Friedman argued that the pursuit of societal and environmental objectives will undoubtedly hurt shareholders by lowering profits. However, other scholars like Margolis and Walsh oppose the arguments of Friedman.
They found that, between andat least empirical studies investigated the positive relationship between social responsible behaviour of an organization and its financial performance. Another main contribution to the development of CSR made by Carrollconsidered the economic, legal, ethical and philanthropic levels of CSR.
These levels represent what is required, csr essay, expected and desired for CSR strategies Crane, Matten, Spence, However, corporations became to understand the importance of environmental responsibility.
The great number of scholars, who have since the s Fenn, Ackerman,analyzed the complex issue of Corporate Social Responsibility and the advantage of reporting on a wider scale, have given the possibility to evaluate social performance Levis, The theme of social reporting has been developed along with the CSR. The approach for researching reporting is different in comparison with past decades due to the growing number of organizations that have published a social report.
Belal, csr essay, ; Bitcha, ; Weaver et al, The reason for the growing interest in this field is linked to progress in business ethics Donaldson, csr essay, and the significant importance of the stakeholder approach, which has led to an increase of interest in studying the causes and real meaning of the phenomenon. The present approach to social reporting activities can be divided into two parts: fists, csr essay who still think that it is a responsiveness approach and others, who argue that it is much more than communication; it is a tool of strategic management.
Cultural differences affect CSR dynamics as well as companies practising responsible behaviour. For instance, research by Juholin reviled that long-term profitability is the prominent driving force behind CSR in Finland. Research by Fulop csr essay al. A similar study by Uhlaner et al, csr essay. Despite cross-cultural and national differences, csr essay, there are differences in the variety of methodologies adopted in examining and analyzing CSR, csr essay.
Some studies considered CSR as a philanthropic and ethical responsibility; however other studies have made csr essay distinction between CSR as simple legal compliance vs.
What is Corporate social responsibility (#CSR) ?
, time: 3:23Ethics and Corporate Social Responsibility: [Essay Example], words GradesFixer
Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, and responsible business) is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment · Chapter 1 Introduction Corporate Social Responsibility is a rapidly developing, key business issue. It is a concept that has attracted worldwide attention. Due to the demands for enhanced transparency and corporate citizenship, CSR started to embrace “Ethics can be defined in business terms as the moral principles that govern an organisation’s behavior or code of conduct in their operations (Rosamund, )”.“Corporate social responsibility can be defined as a business approach that contributes to a company’s responsibility on its effects on environmental and social wellbeing (Rosamund, )”
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