Theories of CSR and Evaluation of Company CSR

Table of Contents
INTRODUCTION...........................................................................................................................2
Theories of CSR..........................................................................................................................2
The evaluation of company CSR.................................................................................................4
Conclusion..................................................................................................................................6
REFERENCES................................................................................................................................1
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INTRODUCTION
Social responsibility of business refers to the work the business owner does to make the
environment and social activities to improve. They do social benefits to make sure that
everything in the company is done in proper ethical and it is also done in social benefits. Social
duty of enterprise has got very crucial to capitalist and to user who seek a great chance of net
income and also contribute in benefit of organization, IT is also known as Corporate Social
Responsibility (Advantage, 2020). The study will explain the social responsibility of enterprise
in accelerative of income. The report further discusses the theories and information regard the
evaluation of topic.
Theories of CSR
The theory of Friedman vs. Freedman theory explains the concept of corporate social
responsibility in the workplace and its importance. Milton Friedman argued that the decisions of
the company is taken by the management and its final, and they do not need to ask anyone about
what they are doing and what are the impact can be on the business. Milton Friedman explains
that the decision is beneficial for the stakeholders and it's important to have a great business
profit. The way of working of Friedman have changed a lot of consequences in the workplace
and it also made an argument with Ed Freeman who explained that it is the rights of the
stakeholder and other employee to know the changes happening and the impact of decision is
wider and can also harm the employees and other stakeholder. To maintain a long term
sustainability (Jahn and Brühl, 2018), it is important for manager to not only thing of the benefit
of itself and it’s just not only the manager who need to satisfy their demands.
They need to consider the actions and their impact as it can harm and make a negative
impact on other business people and employees working in it. The development and making sure
that the decision can impact the working in a long run and it can cause a lot to organization in its
growth and development. If organization need to grow for a long-period than it is important for
them, to make every steps according to measuring of the actions and the reactions they can get.
The decision of the top management and stakeholder are directly impact the working of
the company and it can provide a great benefit for the company in growth. But on other hand it is
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important for the company to see the negative impact on the working of employee as some
decisions are including them and it can b making them difficult in working situation as they
understand the working better as they are working in front-line. The theory explains that it is
important for every person in the organization who can get affected of the decision taken by the
management or stakeholders ads it is there right and duty to Inform everyone about the decision
so that they can get ready and if they do not like then they can argue or inform about the reasons
that why they are not favouring the company decision (Freeman and Dmytriyev, 2017). Ed
freeman helped them in making a right information details as the employee and remaining
stakeholder need to know the company decision, Friedman on the other hand was arguing about
making decision by manager are beneficial for them.
Stakeholder theory explain the concept of making every person count in organization
and it is important for them to make them aware about the decision being taken which is
indirectly and directly affecting them in working. Stakeholder work for organization, and they
demand to be alert about any happening in the company and it can impact the working of the
organization. Stake holder theory also helps in explaining the process and importance of
stakeholders in the company. Both internal and external stakeholders are important for the
company and they need to make things developed for the company and help in growth and
success.
Tripple bottom line theory: - this is divided into 3 categories one is Economic measures,
Environment measure and social measures.
Economic measures:
Economic measure refers to the measure which is taken to measure the economic
situation and it includes all the flow of money. It looks in taxes, expenditures, income, etc.
 Personal income: - Company is providing a great help in income as they are giving great
income to those who are working for the company and also helping the company with
work.
 Employment: - They are helping development of the employment and helping a lot of
people with their employment strategies and providing a lot of jobs for people.
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