Corporate Social Responsibility (CSR, also called corporate conscience, corporate citizenship, social responsibly or responsible business)[1]is one of the most important business ethics qualities for an organization to become success. It began to develop in the 1970s along with business ethics. [2]The importance of social responsibilities is it can decrease any undesirable characteristics towards an organization image. In business ethics there are four level of social responsibility which include-- economics, legal, ethical and philanthropic[3]. The reputation of an organization is very important and implementing social responsibility can increase positive satisfaction results towards stakeholder and customers and it must be affiliated.
CSR goes beyond compliance and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law."[4][5] The binary choice between 'complying' with the law and 'going beyond' the law must be qualified with some nuance. In many areas such as environmental or labor regulations, employers can choose to comply with the law, to go beyond the law, but they can also choose to not comply with the law, such as when they deliberately ignore gender equality or the mandate to hire disabled workers. There must be a recognition that many so-called 'hard' laws are also known as 'weak' laws, weak in the sense that they are poorly enforced and with no or little control and/or no or few sanctions in case of non-compliance. 'Weak' law must not be confused with Soft law [6] The aim is to increase long-term profits and shareholder trust through positive public relations and high ethical standards to reduce business and legal risk by taking responsibility for corporate actions.
CSR strategies encourage the company to make a positive impact on the environment not only on the organizations, but on stakeholders including consumers, employees, investors, communities, competitors and other instead of creating a negative impact towards them Corporate governance is another major issue with social responsibility. CSR has a neutral impact on financial outcomes.[7] Investors are increasing the demand every year for an organizations to develop social irresponsibility which increases a companies’ performance level in positive and effective way.[8]
Some issues revolving Social responsibility are consumer protection issues, sustainability and corporate governance. Critics[9] questioned the "lofty" and sometimes "unrealistic expectations" in CSR.[10] or that CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.Proponents argue that corporations increase long-term profits by operating with a CSR perspective, while critics argue that CSR distracts from businesses' economic role. Corporate governance is another major issue with social responsibility. There are less unethical decisions made when corporate governance is involved.
Political sociologists became interested in CSR in the context of theories of globalization, neoliberalism and late capitalism. Some sociologists viewed CSR as a form of capitalist legitimacy and in particular point out that what began as a social movement against uninhibited corporate power was transformed by corporations into a 'business model' and a 'risk management' device, often with questionable results.[11]
CSR is titled to aid an organization's mission as well as serve as a guide to what the company represents for its consumers. Business ethics is the part of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. ISO 26000 is the recognized international standard for CSR. Public sector organizations (the United Nations for example) adhere to the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles, but with no formal act of legislation.
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- ^ D Wood, (1991) 16(4) Corporate Social Performance Revisited
- ^ Business Ethics. Ferrell, Fraedrich and Ferrell. 2015. pp. 1–30. ISBN 978-1305500846.
- ^ Business Ethics eleventh edition. O.C Ferrel, John Fraedrich and Linda Ferrell. pp. page 36. ISBN 978-1305500846.
{{cite book}}:|pages=has extra text (help) - ^ McWilliams, Abagail; Siegel, Donald (2001). "Corporate social responsibility: A theory of the firm perspective". Academy of Management Review. 26: 117–127. doi:10.5465/amr.2001.4011987.
- ^ McWilliams, Abagail; Siegel, Donald; Wright, Patrick M. (March 2006). "Corporate Social Responsibility: International Perspectives" (PDF). Working Papers (0604). Troy, New York: Department of Economics, Rensselaer Polytechnic Institute.
{{cite journal}}: Cite journal requires|journal=(help) - ^ Klarsfeld, A., Delpuech, C. (2008). Hard law, soft law, weak law: the implications of the neo-institutional and social regulation theories on CSR and the distinction between hard and soft law, Working Paper, Toulouse Business School
- ^ McWilliams, Abagail; Siegel, Donald (6 April 2000). "Corporate social responsibility and financial performance: correlation or misspecification?". Strategic Management Journal. 21 (5): 603–609. doi:10.1002/(SICI)1097-0266(200005)21:5<603::AID-SMJ101>3.0.CO;2-3.
- ^ Business Ethics eleventh edition. Fereel, Fraedrich and Ferrell. pp. 11–18. ISBN 978-1305500846.
- ^ Beatty, Jeffrey F.; Samuelson, Susan S. (2009). Introduction to Business Law. Cengage Learning.
- ^ Henderson, David (2001). Misguided Virtue: False Notions of Corporate Social Responsibility. Institute of Economic Affairs. p. 171. ISBN 0-255-365101.
- ^ Shamir, R. (2011). "Socially Responsible Private Regulation: World-Culture or World-Capitalism?". Law & Society Review. 45 (2): 313–336. doi:10.1111/j.1540-5893.2011.00439.x.