Theories of Corporate Social Responsibility: Practical Implications

MANAGING ACROSS
BORDERS

Introduction
Corporate social responsibility (CSR) is defined as the strategies, where corporations and
organisations conduct their business operations in such a way that is ethical, environmentally
friendly, important to the society, and community development (Crane, Matten, & Spence,
2019). CSR promotes vision towards the accountability of the business with a wide range of
investors, shareholders, wellbeing of the employees, community and the civil society. CSR is
an action towards the competitiveness of international concerns with the use of three theories
such as utilitarian, relational, and managerial theories (Stirling, Palazzo, & Phillips, 2016).
This essay aims to examine theories of CSR where certain groups are chosen to execute the
interdisciplinary aspects of the economic, managerial, and social aspect. The role of CSR has
emerged as an important concept to highlight where the organisations highlights the interest
and cater them by focusing on the rights of the employees and workers in its value chain.
CSR initiatives focus on environment considering the recycling, energy usage, ethical
resources, and the carbon footprint. At the marketplace, CSR is needed to foresee the ethical
sourcing, corporate taxing, fair-trading, and anti-bribery (Lins, Servaes, & Tamayo, 2017).
Role of CSR and its practical implications
The importance of CSR leads to the establishment of CSTR programme, which act as the
drivers of the establishment. Human resource leaders can take to adhere the interest of the
society and take responsibilities to foresee the impact of activities on suppliers, employees
and the customers (Wang, Tong, Takeuchi, & George, 2016). Under this programme, there is
a plan consisting of CSR assessment, CSR strategy, implementation plans, verification,
evaluation, and refinement (Chernev, & Blair, 2015). There is a process while identifying the
main relationship stakeholder inclusive of business benefits and the stakeholders (Wang,
Tong, Takeuchi, & George, 2016). It also lead to relevancy to the organisation using the
resources and environment effect of remuneration policy accomplish with the working

conditions. The role of HR opts to take various forms inclusive to support broad CR strategy
aligning with the company`s values, and business activity (Jamali, & Karam, 2018). Learning
and development acts as an important role in enhancement of the management capability and
leading to the promotion of learning of corporate responsibilities (Tang, Gallagher, & Bie,
2015).
A business combine various CSR activities with the core practises of business and applies to
the range of HR practises such as recruitment, conditions, heath, safety, diversity, fair
treatment, development, learning, performance management, and rewards for the society to
serve all the related stakeholders. CSR for multinationals develop with a result of competitors
and challenges faced by them. Certain aspect of the managerial theory when coming in the
wellbeing as an responsibility and managers by using important tools for CSR for
multinationals in order to survive in the foreign nations. For example- ITC is one of the
India`s crucial private companies that has portfolio of business services. The organisation
undertakes CSR initiatives and appreciate them. CSR philosophy of this company aims for
sustainable development and continuous growth. ITC has unique business models, which can
synergise the long-term creation of value with the enhancement of societal capital. ITC
commitment to the CSR policies reflects the accomplishment in terms of not only financial
profitability but also equal transformation engendered to the social capital of the company.
ITC has ensured to commit to national agenda of increasing the agricultural productivity and
finally making rural economy. As an action based implementation, ITC regulated e- Choupal,
Watershed development, primary education, livestock development, and social farm forestry.
E- Chou pal’s milestone is the empowerment of 4 million farmers, establishment of 114428
greened that generates 51.48 million person with the days of employment.
On the other hand, Nestle focuses on three pillars by creating shared value such as nutrition,
rural and water development. Nestle avails the nutrition education and several physical