Extent of Corporate Social Responsibility (CSR) Implementation by Corporations

This article critically discusses the extent to which corporations take Corporate Social Responsibility (CSR) seriously. It draws on both the UK and global context, highlighting the legal obligations of entrepreneurs, the main features of CSR, and key CSR issues. The article also examines the history of CSR, the benefits of CSR, and the importance of CSR in modern times.

Critically discuss the extent
to which corporations take
Corporate Social
Responsibility

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY.................................................................................................................................3
CONCLUSION ..............................................................................................................................5
References........................................................................................................................................6
Books and Journals .........................................................................................................................6

INTRODUCTION
Corporate social responsibility refers to the constant commitment by organisation in
order to contribute to social and economic growth while enhancing the quality of life of
employees and their families along with society and community at wider term. The concept of
CSR was introduced in 1950 as well as its evolving continuously (Sharma, 2019). It is termed as
legal obligations of Entrepreneur to adopt and implement such policies, make decisions and
follow a effective strategy that are desirable in context of values and objectives of society. The
main features of Corporate Social responsibility are processes or initiates taken form voluntary
activities, stakeholder management, managing external factors, alignment of economic and social
responsibilities, values or practice as well as beyond philanthropy. In UK, government
incorporate CSR into legislation in context to moral view of community along with forcing
organisations to adapt the voluntary involvement of Corporate social responsibilities into their
business strategy.
This project Critically discuss the extent to which corporations take Corporate Social
Responsibility.
MAIN BODY
Corporate social responsibility is the way by which a organisation achieves a equilibrium
of social, economic and environmental imperatives. In broad sense, it has been divided into two
areas such as there are some factors which focus on internal environment of firm like equal
treatment of minorities and women, development opportunities and employment relation. Some
factors which focus on external environment such as welfare of society, environment friendly
practices and contribute to the development of whole world (Nave and Ferreira, 2019). CSR
divided into three categories such as legal, economic and ethical responsibility. The main reason
behind development of CSR to promote welfare of society, increase market share or revenue of
business along with it also support progress and change across the world that often includes
helping needy people to improve their living of standard. It also promote sustainability in
environment which improve the weather condition and health of people. The Companies Act
UK, requires entrepreneurs to consider the interests of consumers, employees, suppliers,

community and the environment when following the interest of their shareholders. In global
context, it has been seen that every country make their CSR law which every company need to
considered while making its business strategies in order to conduct their practices sustainably. It
is very important in nowadays for every firm whether it is large or small to adopt the CSR
guidelines in their business operation (Adnan, Hay and van Staden, 2018). Various key CSR
issues are eco efficiency, environmental management, stakeholder engagement, responsible
sourcing, labour standards or working conditions, community and employee relation, human
rights, gender balance, good governance, social equity as well as anti corruption measures.
Early trade and commerce as part of the European colonial project in which countries
followed mercantilism policies which aim to strengthen the economy of home country. In this
type of trade many companies follow batter system for trade as they exchange goods and
services for buying goods instead of money (Amorelli and García‐Sánchez, 2021). The period of
Colonial trade is 1600 to 1800, in which Britain companies have monopoly over exports and
imports. They import raw material in less price and export finished goods at higher price. The
biggest company like world’s first great transnational corporation – the British East India
Company are the greatest example of this type of trade (Anderson, 2022). It was established in
1600 by Thomas Smythe and Royal Charter in Great Britain. It deals in spices, silk, cotton,
indigo dye, opium, slave trade, salt, sugar and tea in all over the world. It was a first
transnational corporation which engaged in import and export and trade outside the boarder of its
country. It rules many countries and use their rich resources to generate revenue along with
strengthen the economy of their home nation.
As per the Philip Stern’s ‘The Company State, it is a book related to the trade and
commerce of firm during the time of colonial period (Stern, 2020). In this book, Philip Stern’s
wrote the history of British East India Company as how it expand its business and introduce the
term of globalisation along with win over many forces. It has been analysis that the company
made its business strategies as per European political system (Stern, 2019). They conduct unfair
and bad practices with people and other nations for their personal benefits that leads to poor
environment and health condition of people. Many rival company charge against Colonies
companies for their inhumane treatment, unfair practices and monopoly. Business is main source
which provide effective and innovative solution for various challenges in today world. In
Europe, many organisations engaged to help the world become a better place in that everyone

can expand by economic, social and environmental progress. In European government developed
its CSR strategy on 2011 than aims to align global and European approaches to CSR for
sustainable environment. This strategy focuses the significance of improving the visibility of
CSR as well as spreading good practices by integration of Corporate social responsibilities in
trade and commerce (Stanwick and Stanwick, 2020). After globalisation addition to competitive
and interconnected world, the method by which corporate governance, social and environmental
issues are managed refers to the part of organisation Such as management quality required to
compete effectively. Firms which perform better in context to all these issues can maximise
value of shareholders by anticipating regulatory actions, effectively managing risks as well as
accessing new markets along with contributing to sustainable growth of communities in which
they run their business operation. European firms have to inclined to hold broader and stronger
formulations to shareholder relation to meet the aims of sustainable development as well as
competitive social market economy. Early 90s in UK, There is a corporate scandals and scams
arise with revealing of misdeeds by large public corporation trusted executives. Misdeeds
includes overstating revenues, misdirecting and misusing funds, overstating the value of
corporate assets, understating expenses, overstating revenues as well as under-reporting the
current liabilities. In the global context various companies conducted these practices which force
government to reform the law and polices in the governance of organisation. In UK, there is two
company such as BCCI and Maxwell communication corporations, the government take actions
against these company for their misconducts. Such as lack of proper audit system, poor
management, lack of regulatory supervision, non existent board of directors, financial
difficulties and many more.
After the scandal of these company the government of UK decided to formulate new
policies for business which they have to follow in their operations for sustainable development of
country. The government incorporate CSR duty under law which is mandatory for companies to
follow. The UK Companies Act 2006 needs management to consider the interests of shareholder
along with welfare of community and environment. In global context many countries make the
law of CSR mandatory for companies which bring sustainability in their operations and develop
economy of country (Bennett, 2021). CSR consist four responsibilities such as economic
responsibility, ethical responsibility, philanthropic responsibility and environment responsibility
which a company must considered during its activities. It also help company to attract skilled and

talented staff along with retain them for long term. The benefits of CSR are increased customer
loyalty and sales, positive organisation reputation, sound financial performance, good brand
recognition, organisational growth and operational costs savings. It has been determined that
corporations are not just commercial enterprises but also mini states. The big companies like
British East India Company has responsibilities towards the society and environment. For that
management have to formulate their CSR strategy for the sustainable development. Various
countries make different legal structure for every sector of organisation such as limited liability,
partnership, incorporation and many more in which companies have to registered their
organisation along with follow the guidelines of particular structure for development. It has been
seen that in modern times British East India Company evolve their CSR strategy time to time to
compete in dynamic market and attract large number of customers. In developing countries,
many limited company try to make their organisation big like mini state by considering the
interest of employees, suppliers, environment and community.
In recent times corporate social responsibility is go beyond Philanthropy as many company
adopt CSR policy to make their business organisation a better place to work and trustable to
customers. Philanthropy is related to social work, charity and help to needy people. It is a part of
CSR which a company use to increase their image. Many firms reinvent their CSR and add
various other policies and factors with some public relations and marketing benefits. It also help
them to develop trust among people about their brand and enhance community relations. In
modern era Corporate Social responsibility is far beyond Philanthropy as in which the
organisation is generally donating funds to other whereas, CSR includes the strategy of company
in order to solve environmental and social issues in which they involved (Pekovic and Vogt,
2021). It is a process in which company is to contribute the development of country and whole
world. By using CSR strategy they promote sustainability, consumer rights, welfare of
employees, eco friendly practices and promote equality among whole world. In global context
many companies gives more focus to reinvent their CSR in order to make better relations with
public and connect with population of other countries which leads to increase their market share
in international market.
Many companies restructured their CSR goals to meet the requirement of their internal
and external stakeholder as it has been seen that it is very important for company to add the
policies in their CSR for the development of employees. In order to motivate and retain talented

employees they need to treat their employees with equality and respect, provide time to time
growth opportunities and make their internal environment positive so they feel to be valued and
put their efforts for the success of company. By transforming their old and traditional
organisation structure or culture they engage their employees for increasing productivity. They
must also allow their staff member to participate in determine the standards of CSR management
for effective working. In order to make effective corporate strategy they must add the concern of
external strategy in their CSR which further help them to interact better with society and connect
them with their brand (Mishra, 2018). By donating funds to NGO, organising programs for
cleaning environment, make policies for effective waste discharge and help government to
promote pollution free scheme they can improve their brand image in eye of people which leads
to increase in sales or revenue. It has been seen that it is working in some areas of world whereas
it is also work in progress in many area of globe as many companies works to implement
complete CSR strategy in their operation for the development as a whole.
CONCLUSION
As per above presented information, it has been concluded that in recent time every
nation and companies must give focus on corporate social responsibility to make world a better
place to live. They also conduct various program for betterment of people, society, environment
and employees, they must adopt eco friendly and fair practices in their organisation to offer best
quality product and services along with opportunities to employees to live better life.

References
Books and Journals
Sharma, E., 2019. A review of corporate social responsibility in developed and developing
nations. Corporate Social Responsibility and Environmental Management, 26(4),
pp.712-720.
Nave, A. and Ferreira, J., 2019. Corporate social responsibility strategies: Past research and
future challenges. Corporate Social Responsibility and Environmental
Management, 26(4), pp.885-901.
Wickert, C. and Risi, D., 2019. Corporate social responsibility. Cambridge University Press.
Adnan, S.M., Hay, D. and van Staden, C.J., 2018. The influence of culture and corporate
governance on corporate social responsibility disclosure: A cross country
analysis. Journal of Cleaner Production, 198, pp.820-832.
Amorelli, M.F. and García‐Sánchez, I.M., 2021. Trends in the dynamic evolution of board
gender diversity and corporate social responsibility. Corporate Social Responsibility
and Environmental Management, 28(2), pp.537-554.
Anderson, P., 2022. Corporate Social Responsibility: rhetoric or reality: nutrition and UK food
manufacturers (Doctoral dissertation, University of Winchester).
Mishra, R., 2018. A Business of State: Commerce, politics, and the birth of the East India
Company. Harvard University Press.
Pekovic, S. and Vogt, S., 2021. The fit between corporate social responsibility and corporate
governance: the impact on a firm’s financial performance. Review of Managerial
Science, 15(4), pp.1095-1125.
Stern, P.J., 2020. Early Eighteenth-Century British India: Antimeridian or
antemeridiem?. Journal of Colonialism and Colonial History, 21(2).
Stern, P.J., 2019. English East India Company-State and the Modern Corporation. In The Oxford
Handbook of the Corporation.
Bennett, M.D., 2021. Slaves, Weavers, and the Peopling of East India Company Colonies, 1660–
1730. In Slavery and Bonded Labor in Asia, 1250–1900 (pp. 229-255). Brill.
Stanwick, P. and Stanwick, S., 2020. International Management: A Stakeholder Approach.
Edward Elgar Publishing.