How does the rise of ethical consumers effect corporate social responsibility - Essay Example

While taking price and quality into consideration, ethical consumers apply to the decision making process some additional criteria, which may be their priority issues in some cases. Corporate social responsibility (CSR) encompasses the relationship between corporations or other large organizations and the societies with which they interact. CSR also includes all the responsibilities which are a part of these relationships, for both the organizations and the societies. All stakeholders and constituent groups that have an interest in the organization’s operations are included in CSR’s wide and multiple-level definition of society.

Corporate social responsibility can be defined as “the broad concept that businesses are more than just profit-seeking entities and therefore also have an obligation to benefit society” (Werther & Chandler, 2006: 6-7). Strategic corporate social responsibility is the concept that for long-term benefits to the organization, CSR should be made a part of the firm’s strategic perspective and operations. It has been recognized that the activities of an organization influence the external environment, hence it is important that the organization should be accountable to not only its stakeholders, but also to a wider community.

This concept initially took root in the 1970s, and grew as a concern for the company as a member of society, with a wider view of company performance including its social performance (Crowther & Rayman-Bacchus, 2004: 3). Though community accountability was acknowledged as essential, the focus of big business on financial results was observed to be an impediment to social responsiveness, especially in the early years of the accountability concept taking shape. There is now an increasing move towards accountability of companies towards all participants, and this recent phenomenon is getting established as the