The paper "Concept of Corporate Social Responsibility" is a good example of management coursework. Corporate social Review abbreviated as CSR has received widespread cognition and debates in the global economy (Servaes & Tamayo, 2013). Globalization has made managers of various organizations rethink and reorganize their CSR paths. Corporate social responsibility is essential in the business world following the advantages it confers to the parties involved (Servaes & Tamayo, 2013). The notion of CSR has long been linked with the philanthropy of the corporate. However, as the world globalizes further this has changed and there is now the contemporary view of CSR that is majorly based on multinational corporations.
CSR has been linked to the firm value, the success of organizations and competitive advantages of organizations in most literature (Servaes & Tamayo, 2013). There are instances where CSR has also assisted in marketing the products of organizations because the public is aware of their product quality through CSR. This essay will expound on the concept of corporate social responsibility to give a better understanding as well as examine the two views of CSR.
The essay first looks at the classical view and then the socioeconomic views on CSR and then gives relevant examples to support the ideas presented before concluding. Concept of Corporate Social Responsibility Corporate social responsibility can be defined in a number of ways. Saeed & Arshad (2012) define CSR as situations where an organization goes beyond the compliance alone through engaging in actions that apparently transition the social good, beyond the goals and interests of the organizations as well as what is legally permissible for the organizations. CSR shelters three core activities that our economic prosperity and growth, social progress and ecological balance all in one plate (Saeed & Arshad, 2012).
The discourse of CSR is slowly expanding and with it comes the need of meeting the stakeholder’ s needs in the society, meeting social needs and profit maximization (Brammer, Jackson, & Matten, 2012). CSR is adaptable across organization being that it has the characteristic of value creation and instituting competitive advantage on firms that practice it. There are very many dimensions of CSR. First, economically CSR enables organizations to make a good return on investments for the shareholders and the owners, creates jobs and institutes business development (Saeed & Arshad, 2012).
Second is the legal dimension where CSR also has legal responsibility. The business organizations are likely to comply with the regulations and legislations that govern business. CSR also has an ethical dimension that governs what is right from what is wrong for the organizational practices. The humanitarian ground is the key base of this dimension (Brammer et al. , 2012). Lastly, CSR also has the voluntary dimension that ensures that organizations have a wide scope of discretionary behaviors through engaging in activities that positively contribute to the welfare of the society. CSR also ensures that organizations are at the forefront in the protection of human rights when dealing with the employees through the creation of safe work environments (Brammer et al. , 2012).
Additionally, the organizations are also able to ensure fairness in all HRM practices such as recruitment, selection, training, and development (Saeed & Arshad, 2012). Lastly, CSR also has the capacity of making organizations reduce environmental degradation when extracting resources. Ben and Jerry’ s use of fair trade ingredients and has a dairy farm in the state of Vermont for stability (Saeed & Arshad, 2012).
Most companies also participate in community-based programs that help raise the living standards of the communities from the areas where they extract resources.
Brammer, S., Jackson, G., & Matten, D. 2012, “Corporate Social Responsibility and institutional theory: new perspectives on private governance”. Socio-Economic Review, 10(2), 3-28. doi:10.1093/ser/mwr030
Jamali, D., & Sidani, Y. 2008, “Classical vs. Modern Managerial CSR Perspectives: Insights from Lebanese Context and Cross-Cultural Implications”. Business and Society Review, 113(3), 329–346.
Kitzmueller, M., & Shimshack, J. 2012, “Economic Perspectives on Corporate Social Responsibility”. Journal of Economic Literature, 50(1), 51–84. doi:10.1257/jel.50.1.51
Saeed, M. M., & Arshad, F. 2012, “Corporate social responsibility as a source of competitive advantage: The mediating role of social capital and reputational capital”. Journal of Database Marketing & Customer Strategy Management, 19(4), 219 – 232. doi:10.1057/dbm.2012.19
Servaes, H., & Tamayo, A. 2013, “The Impact of Corporate Social Responsibility on Firm Value: The Role of Customer Awareness”. Journal of Management science, 59(5), 1045–1061.