The paper "Concept of Corporate Social Responsibility " is a good example of business coursework. Corporate Social Responsibility (CSR) has for a long time since the eighties been an important topic of discussion and debate in business management both at the scholarly and professional domain levels. There are various views on CSR such as classical and socioeconomic views that champion against and for CSR respectively (Ochoti et al. , 2013). CSR plays an integral role in organizational development as has been shown by most studies. Organizations that have embraced CSR have had a myriad of benefits including customer and employee loyalty, positive brand perceptions, client trust, financial success and positive public image.
Most importantly CSR has been seen to increase customer and employee satisfaction thus building competitive advantage (Ochoti et al. , 2013). Most multinationals have expanded as a result of globalization making it essential for them to embrace CSR practices in order to benefit the society while at the same time get a return on investments made (Nan & Heo, 2007). The society where resources are gotten from has benefited as a result of sound CSR measures that not only look at the environmental well being but also the social well being.
When talking about CSR there are many stakeholders that are involved. Most authors have linked CSR to the success of most organizations (Nan & Heo, 2007). The aim of this paper is to explore the concept of CSR making clear the link there is between it and the competitive advantage of the firm. The essay will expound on the concept of CSR and give two case examples where CSR have either failed or been attributed for the success of an organization. Concept of Corporate Social Responsibility Most authors have long agreed that the succinct definition of CSR is not in place being that the concept is a multifaceted and different angle of views that one might approach it (Ochoti et al. , 2013).
CSR can be defined as a set of duties and legal as well as ethical commitments an organization gets into with the stakeholders, arising from the impacts of the operations and activities of the organization that have social, economical and environmental impacts as well as human rights concerns (Brammer et al. , 2012).
It is common for most people to confuse CSR to ethics; however, CSR mainly depends on the social demands of the stakeholders (Rupp, 2011). CSR could also be defined as the legal, economic, ethical and discretionary expectations of the society of an organization at a given point in time (Jamali & Sidani, 2008). With this approach, the organizations have to be moral, ethical and philanthropic in addition to the normal responsibilities for such organizations to comply with the law and get a return on investments (Jamali & Sidani, 2008).
The last best definition of CSR could be the commitment of an organization to improve the well-being of the community through a range of discretionary business practices and contributions of corporate resources (Carroll & Shabana, 2010). The key term here is discretionary as it reflects the voluntary commitment of the organization in choosing and implementing practices as well as making contributions. Through CSR businesses are able to go beyond compliance and thus engaging in actions meant to create some social good, beyond the normal interests of the firm as well as what the law demands of such businesses (Brammer et al. , 2012).
All activities that fall under the CSR domain fall in three broad categories, which include ecological balance, social progress and economic growth. From a resource-based perspective, CSR is very important for business organizations for a variety of reasons that will be addressed later in this paper. There are very many dimensions of Corporate Social Responsibility. First off, adopting CSR would mean that there is the target of economic value which assures an organization a good return on investments for both the owners and the shareholders (Ochoti et al. , 2013).
Through this dimension, CSR practices are able to create jobs, fair pay and make developments of the business for economic gain (Rupp, 2011). The second dimension of CSR is that it confers legal responsibility (Brammer et al. , 2012). This means that organizations are able to obey rules guiding the business as well as the legislations set by the government.