Concept of Corporate Social Responsibility Report
Added on 2020-01-21
11 Pages3220 Words73 Views
MANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8..........................................................................................................................................................9
INTRODUCTIONBusinesses use to start their operations after determining their vision and mission.Besides deciding its vision, mission and objectives of company, the firms also use to make someplans that can provide some advantages to the society where they are operating. Though thebusiness organisations use to serve the society through employment generation, providing goodsand services and so on. The expectations of society is more which induces the business entities tooriginate a concept of Corporate Social Responsibility (CSR) (Cláudio and et.al., 2010.). Theconcept of CSR has taken a form according to which it has become necessary for all types ofbusiness enterprises to frame CSR of their company. The CSR concept shows that the specificorganisation is fulfilling its responsibility towards the society in appropriate way, hence it iseligible to achieve the license to operate in society. The present report is based on the sameconcept along with various theories attached with CSR. The term corporate social responsibility can be defined as legal, economic, discretionaryand moral responsibilities of business organisations towards society. This concept implies a giveand take relationship between business and society. As any company set up at any place uses theplace of society, hire employees and make profits from society hence it is necessary that it givessomething in return to society as well (Du, Bhattacharya and Sen, 2010). There is no suchaccurate measure that can define the extent of responsibilities that should be fulfilled by firms asdifferent people have different perspectives. But according to some experts they have a commonfeature which includes society and humans hence on this basis three key approaches to CSR havebeen introduced which are as follows:Ethical responsibility approach: The ethical conceptualisation framework suggests theduty of care towards all stakeholders through introduction of policies that are beneficialfor them.Economic responsibility approach: This approach considers the capital market which isbuild on the basis of morals of business. Corporate citizenship: This concept shows the responsibility towards productions that aredone for society for their benefits (Scherer and Palazzo, 2011).Besides all these approaches, some theories have also been given by some of the expertswho have covered different groups of society and have connected them with CSR. The groupsrelated to this concept are enlisted below:1
Corporate social performance: The corporate social performance lays main emphasison responsibility of business towards society even if there is non legal body to demandfor it. The organisation establish their businesses so that they can earn profits but theyare responsible towards society as well so they should not make any profit by exploitingthe interest of society (Zhan and et.al., 2010). This is also true that any firm cannot fulfilthe expectations of every person in society so companies should frame their CSR policiesafter considering their status within social groups. The corporate social performance islike a bridge between corporate and society which is essential to keep a healthy relationbetween both. Therefore, it is necessary that every business firm should execute theirtasks in a manner that can be less harmful for society. Further, the business organisationsuse to perform their roles in positive way along with fulfilling needs and demands of itscustomers. Thus, they contribute by providing all of their services in appropriate waywhich can give benefits to both parties. If firms are not able to fulfil their responsibilitiestowards the society, sometimes people can consider it, but if the harm is more that hasgreat impact on masses than the specific organisation may go out and cease to exist inthat society (Anticevic and et.al., 2014). The weakness that results due to good linksbetween morality and business functions, this may result in major weakness oforganisation. Moreover, it is essential for every company to fulfil their all societalresponsibilities besides of their any weaknesses.Shareholder value theory: The shareholder value theory implies the same concept ofmaximising the wealth of its all shareholders. But the other side shows that it is notsufficient to fulfil the wealth needs of shareholders as it may result in controversialsituation. It is apparent that the present situation for business organisations is difficult asit is suffering from recession conditions so struggle has become more sharp to survive(Prabhu, 2013). In this situation, the experts suggest that to survive successfully, it isnecessary to make efficient use of available resources by following the honest rule ofsociety. This will help in managing the activities of company so that responsibilitiestowards society can be fulfilled. The shareholder's wealth can be maximise in suchsituation by complying with legal and ethical rules. Thus, the company will be able to runits work smoothly as it will not be opposed by society. There is a tremendous effort byexperts because of which their finding concludes that a business organisation should be2
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