Abstract Messages regarding corporate initiatives that are socially and ethically responsible have been pointed out to have favorable outcomes by evoking positive responses among stakeholders, employees, and the community, on the whole. Research has also indicated the benefits…
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Introduction Over the years, corporate responsibility (CR) has gained increasing attention from practitioners and scholars alike. The programs intended to demonstrate corporate responsibility have led to significant findings, such as the belief that commitment towards CR activities and communication can improve the perceptions of various stakeholders. Thus, lack of social responsibility may lead to the weakening of stakeholder relationships. CR efforts that are characterized by global themes as well as execution tactics have emerged in the marketplace. Communication of CR in Europe and non-Western countries has reportedly becoming similar to activities in the United States with which reporting and communication are frequently articulated. This suggests that CR efforts, which proactively plan and implement programs that integrate social value with business activities and address problems perceived as part of an organization’s social responsibility, have considerably improved. Therefore, the current trends and evidence highly support the communication of CR activities and programs. Corporate Responsibility: An Overview Primarily, the social responsibility of organizations is to produce goods and services that are socially desirable (Becker-Olsen, Taylor, Hill, and Yalcinkaya. 2010). Furthermore, these companies have the social responsibility of adhering to ethical and legal standards that are viewed by the society as appropriate. This has been presented through a more comprehensive definition that described corporate citizenship as the extent to which firms take on the legal, ethical, economic, and discretionary responsibilities that their stakeholders oblige them to assume. One of the most noteworthy aspects of CR’s definition is the relevance attached to discretionary responsibilities that express the desire of the society to see companies become actively involved in the development and betterment of communities and perform beyond the expected standards. Through previous studies, a number of CR practices have been identified that were categorized as moral or ethical practices, discretionary practices, and relational practices. Diversity, community support, employee support, involvement with the environment, and product manufacturing were considered. Fair treatment of employees, taking into consideration the rights of employees from foreign countries, fair competition with others, responsible actions toward the environment, and exemplifying of truth are all considered as moral or ethical practices in relation to corporate responsibility. Meanwhile, under discretionary practices, a number of procedures have been identified as well, such as the contribution of resources to increase social awareness regarding current issues, support for issues on family and children, support for public health programs, and contribution of cultural programs for the community. Finally, relational practices involve the attempts for establishing long-term relationships with consumers as well as the willingness to consider the views and constructive criticisms of stakeholders regarding business practices (Shum and Yam, 2010). The business benefits of corporate responsibility have been comprehensively examined and results have indicated that CR can generate moral capital among workers
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