The paper "Corporate Social Responsibility Theories" is a perfect example of management coursework. Corporate Social Responsibility is a theme attracting immense significance in the world today; corporations in both developed and developing nations are increasingly indulging in CSR (Jamali and Sidani, 2008). According to Kotler and Lee (2011), corporations have a huge impact on various tenets of society, thus the need for them to develop frameworks of enhancing social responsibility. The social responsibilities of organizations have been a hugely debated phenomenon in corporate circles. The classic and socio-economic views of corporate social responsibility play a huge role in determining how the management of companies relate to their internal and external structures (Kotler and Lee, 2011).
For this reason, a tailed comparison of the two approaches is instrumental in understanding CRS. The purpose of this essay is to have an in-depth discussion on corporate social responsibility, its impact on the society as well as on the operations of corporations. With a focus on the classical and socioeconomic views of CSR, the essay also aims to unearth the theoretical arguments for, and against the concept.
In achieving its purpose, the essay begins by defining CRS and providing a broad comprehension of the concept. In addition, the essay will discuss the classical view of CSR and the arguments against CRS. The essay will also examine the socioeconomic view of CSR and the arguments for CRS. Finally, the essay will give a summary of its main arguments on the topic. Definition and Understanding of CSR Corporate Social Responsibility refers to the actions taken by a corporation to address environmental, economic and social issues in a bid to contribute towards the growth and development of the society (Luo and Bhattacharya, 2006).
Devinney (2006) further points out that, CSR is a social sanction obliging a corporation to play a significant role in accruing benefits to society. “ From a traditional tenet, society’ s social sanction to corporations calls for organizations to operate within the social, legal and economic values of the society, as well as enhancing the development of the values” ( Devinney, 2009 p. 46). A critical analysis of the ideas pointed out unearths that a company’ s decisions should mirror its commitment towards social responsibility.
Moir (2001, p 18) argues that “ Corporate Social Responsibility stems from a significant relationship between companies and the society. ” Consequently, according to Moir (2001), corporations, in maintaining the principles of corporate social responsibility, are entitled to produce products and services that the society needs. Lee and Kotler (2011) agree with Moir (2001) by asserting that through CSR, organizations and the society are interdependent entities that benefit from each other. CSR covers a myriad of issues including, community development, consumer considerations, social growth, human rights, and employees’ working environment (Lee and Kotler, 2011).
In this respect, CSR has a huge impact on a company’ s stakeholders. Corporate social responsibility derives benefits for both the internal and external environments of a company. Major benefits to a company that embraces CSR is its enhanced corporate image and greater employee constancy (Luo and Bhattacharya, 2006). For instance, a company embracing corporate social responsibility adheres to ethical labor principles, hence creating a favorable working environment for its employees. Moreover, the real benefits of CSR include social and environmental growth, as well as customer satisfaction (Luo and Bhattacharya, 2006).
For example, corporations engage in philanthropic endeavors by donating money to the community, or even producing goods and services that are eco-friendly. Thus, companies are increasingly investing in CSR business models. For example, Tom’ s Shoes is a company that has invested heavily in its CSR framework by donating shoes to needy people across the world. Corporate social responsibility is a broad concept describing the relationship between companies and society. The increasing awareness of national and global concerns is pushing corporations to embrace CSR as a central tenet.