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It encompasses two broad views in general. The first one is that the companies share the wealth they create with either the society they operate in or other under privileged societies. The other is managing their activities in a more ethically and morally responsible way. It is the voluntary exceeding of the society's expectations of the business and it is agreed that it is majorly affected by how the company manages its core businesses. (Baker) Corporate Social responsibility is extremely important to a company's business. According to a survey by the Economist Intelligence Unit, Corporate responsibility is affecting the relationship between companies and their various stakeholders, such as investors, customers, vendors, suppliers, employees, communities and governments. (Doebele, 2005) Underlying principles The Corporate responsibility trend is being driven by a large number of factors. Companies which do not engage in social responsibility might be viewed as unethical as peoples trust in large organizations is already waning. The rise in the corporate governance movement, globalization of businesses and the competition presented by rivals all contribute to a firms increasing interest in corporate responsibility. The benefits of corporate responsibility may prove never ending for an organization. ...
They include environmental management, issues management and stake holder's management. There will be times when two or more of these management areas will be integrated to form one areas of concern. Foreg in 1994 BHP Billton's shareholders were concerned about the company causing environmental damage in Papua New Guinea. (Gail Thomas, 2006) There have been multiple arguments in favor of supporting corporate social responsibilities for businesses. It has been said that practicing a business enables many things in the society and businesses are dependent upon a healthy, well-developed and economically sound society for its proper functioning. Improved quality of life for employees and citizens should be one of the top priority for all ethical businesses and this is only fulfilled if they practice giving back to the society or caring capitalism as Niall Fitzgerland, chairman Unilever calls it. Since the main responsibility that the company owes is towards itself, the company has to ensure that fulfilling responsibility is both beneficial to itself and the society, but ensures that the company survives in the long run. People in favor of corporate social responsibility clearly state that CSR enhances the view of the company in the eyes of the customers and generates a loyal customer base. Others state that fulfilling CSR also provides unmatched promotion and publicity for the company which is again very necessary for the success of the company. Last but not the least practicing social responsibility raises the morale and self esteem of the employees of the company and they feel good about the contributions and are more likely to work efficiently and develop into diligent workers. Boyle and Boguslaw (Boyle, 2007,
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Mc Williams and Siegel (2001) pointed out that various factors like firm’s size, diversification, R&D and market conditions can influence Corporate Social Responsibility. They also concluded that if these factors are considered, the corporate social activities will promote or hinder financial performance.
Permitting the corporate executive to be selected by the stockholders is justified if the executive is an agent serving the interests of his principal and unjustified when the corporate executive imposes taxes and spends the proceeds for "social" purposes.
The research will provide valuable resources for the field of corporate leadership. Recently, some intriguing research has been conducted concerning CSR in use. While these studies attempt to move beyond the philosophical, speculative, and prescriptive tendency characterizing most of the literature in CSR, no studies have examined CSR criteria from the corporate executive's perspective.
In this paper it is also hoped to emphasize the debate on the nature of corporate social responsibility and current efforts to define CSR. It also considers some theories on how and why business might undertake CSR. Theories such as social contrasts theory, stakeholder theory and legitimacy theory will be looked at.
Corporate social responsibility came up as the process whereby corporate, firms, business or even the government come up with policies which are beneficial to the stakeholders regardless to the activity of the organization in question.
It came out very clearly that any organization has several stakeholders, which include customers in that the customers buy goods and services from the firm.
In earlier times managers, in most cases, had only to concern themselves with the economic results of their decisions. Today managers are bound to perform their duties while considering the social impact and repercussions of their businesses reflecting each of their decisions.
Practicing CSR enables the managerial procedures into practice and indicates a pluralistic society that maximises freedom of expression,action,and responsibility which in turn results in a widely diversified set of loyalties to many different causes and organisations and minimises the danger that any one leader of any one organisation will be left uncontrolled.
000 organizations which are members to this association and is spread over about 100 countries for the purpose of addressing some of the most critical issues that has plagued the world. More specifically, the paper is aimed at the course of events that are responsible for
In the business world, the topic of corporate social responsibilityis increasingly capturing the mind and interests of people. From paternalistic philanthropy, the relationship between civil society association and companies has seen radical