Understanding Corporate Social Responsibility

This assignment delves into the concept of Corporate Social Responsibility (CSR). The reflective essay examines the evolution of the author's understanding of CSR, moving from a purely profit-driven business perspective to recognizing its multifaceted role in business success. It analyzes various theories surrounding CSR, including Milton Friedman's and Ed Freeman's stakeholder theory, and the triple bottom line approach. The essay concludes by highlighting how this newfound knowledge will inform the author's future professional conduct within an organization.

RUNNING HEAD: Corporate Social Responsibility
Corporate Social Responsibility

Corporate Social Responsibility 1
Table of Contents
Reflective essay..........................................................................................................................2
References..................................................................................................................................6

Corporate Social Responsibility 2
Reflective essay
In this reflective essay, I will reflect my knowledge, learning and experience on corporate
social responsibility and its importance. Corporate social responsibility can be explained as
the initiatives undertaken for the purpose of taking responsibility for the impact of the
activities of the business on the well-being of the society and environment (Sharma & Kiran,
2013). It is vital for a business to meet the responsibility towards the society as business and
its operations are based on the resources society and environment is supplying to the
business. Ignoring the corporate social responsibility of business towards the society and
environment can result in facing disaster by the business. I have developed knowledge of
regarding the corporate social responsibility with the help of secondary sources available.
These secondary sources have formed a base for the knowledge I have gained (Lindgreen &
Swaen, 2010).
Before undertaking the project, I used to believe that business operates with a sole motive to
attain success by earning profits. I presumed that corporate social responsibility is the
relationship between the business and society. Before undertaking the BUSN3017, I
presumed that corporate social responsibility is being sustainable as resources provided by
the environment are irreversible and scare. This perception regarding the corporate social
responsibility was developed due to the lack of knowledge of the concept. I believed that
business must ensure the safety of the resources of the environment and to eliminate the
negative impact of the activities of the business on the environment. The existence of the
business is for the attainment of profits by providing products or services to the customers. I
believed that corporate social responsibility diverts the business from its aim which is to earn
a profit and to maximise profits of the company (Choi, et. al., 2010).

Corporate Social Responsibility 3
But after undertaking the project, I came to know that business is operating for earning profits
by satisfying the needs of the customers as well as fulfilling its responsibilities towards the
society. Society is supplying different resources which are required for conducting operations
of the business. For analyzing the motive behind the existence of the business, there is a need
to develop a deeper understanding of business and reason for its existence. I have seen that it
is misunderstood by people that the existence of a business is only for earning a profit. I
believe that existence of the business is dependent on the resources provided by society.
Society forms a base for the existence of the business. Business must fulfill the
responsibilities towards the society. I feel that corporate social responsibility is an important
aspect of every business as business has two motives behind the execution of their operations.
These two motives include earning a profit and fulfilling responsibility (Ioannou & Serafeim,
2010).
After undertaking the program, I have developed knowledge of corporate social responsibility
and its importance for the business, society, and environment. Behaviour towards the
business towards corporate social responsibility is changing and businesses are taking it as
seriously. I have gathered information for analyzing the role of corporate social responsibility
in this fast changing business environment. With the help of analysis of the secondary
sources, I have gained an understanding of corporate social responsibility. I have understood
that corporate social responsibility is a basic responsibility of every organization towards the
society and environment to protect them from the adverse impacts of the organizations.
Operations of the business create an adverse impact on the society and environment and these
impacts need to be eliminated for enhancing the quality of society and environment. I have
come across various debates which have discussed CSR. From those debates, I have
concluded that business must aim at enhancing the wealth of different stakeholders which
sums up the society (Bahadur & Waqqas, 2013).

Corporate Social Responsibility 4
I have seen that business activities are affecting the quality of society and environment. The
need of CSR has increased due to the growing pressure from the investors of the business,
increasing role of customers and society in the success and growth of the business, need for
disclosing the role of business in coping with its responsibility towards society and
environment and increasing competitive labor market. I have identified that society is facing
several issues due to business and these issues include pollution, discrimination,
unemployment, harassment, lack of freedom to speech and poverty. Businesses can deal with
these societal issues by adopting CSR (Shabana & Carroll, 2010). I have developed
knowledge of theories which are developed by Milton Friedman and Ed Freeman. These
theories have changed my perception towards the concept of CSR. Friedman has stated in its
theory that business has a social responsibility which is to maximise the profit and manager
of the organization must ensure the interest of stakeholders is considered. Stakeholder theory
is focused on providing maximum benefit to the society. This theory describes the manner in
which manager targets the satisfaction of the interest of the stakeholders. These theories have
enhanced my knowledge towards CSR and its importance for the different stakeholders of the
society. Another theory of CSR is a triple bottom line. This theory is an accounting
framework which includes three parts. These three parts include social, environment and
economy. This theory assumes that an organization is a part of the community and this
provides a social responsibility to organization towards the society and environment
(Lizarzaburu, 2014).
This knowledge which I have gained during the execution of the program will help me in
performing the roles and responsibilities assigned to me in the organization in a better
manner. I have developed knowledge of the concept of CSR, its role for business and
different theories which help in the fulfillment of the CSR of business towards the society
and environment. This knowledge will help me in executing my actions according to the

Corporate Social Responsibility 5
concept of CSR. Corporate social responsibility includes the responsibility of the business
towards the human rights, finance, politics, and environment. An organization must ensure
that interest of every stakeholder is considered for complying with the responsibility. I have
learned that an organization must ensure that the interest of employees, investors, suppliers,
customers, and shareholders must be considered while executing the operations of the
business (Su, et. al., 2014).

Corporate Social Responsibility 6
References
Bahadur, W. & Waqqas, O., 2013, “Corporate Social Responsibility for a Sustainable
Business”, Journal of Sustainable Society, Vol. 2, No. 4, pp. 92-97.
Choi, S. J., Kwak, Y. M. & Choe, C., 2010, “Corporate social responsibility and corporate
financial performance: Evidence from Korea”, Australian Journal of Management, Vol. 35,
Issue 3.
Ioannou, I. & Serafeim, G., 2010, “What Drives Corporate Social Performance? International
Evidence from Social, Environmental and Governance Scores”, Harvard Business School.
Lindgreen, A. & Swaen, V., 2010, “Corporate Social Responsibility”, International Journal
of Management Reviews, 12: 1–7.
Lizarzaburu, E. R., 2014, “Corporate Social Responsibility and Stakeholder Strategies: An
Impact in Risk Management”, Journal of Research in Marketing, Volume 2, No.1.
Shabana, K. M. & Carroll, A. B., 2010, “The Business Case for Corporate Social
Responsibility: A Review of Concepts, Research and Practice”, Research Gate.
Sharma, A. & Kiran, R., 2013, “Corporate Social Responsibility: Driving Forces and
Challenges”, International Journal of Business Research and Development, Vol. 2 No. 1, pp.
18‐27.
Su, W., Peng, M. W., Tan, W. & Cheung, Y. L., 2014, “The Signaling Effect of Corporate
Social Responsibility in Emerging Economies”, J Bus Ethics.