BABS Foundation UOSCOB: Corporate Social Responsibility Report

This report is a literature review on Corporate Social Responsibility (CSR), examining its purpose, definition, and key issues. The report begins with an introduction to literature reviews, explaining their role in gaining knowledge on a topic and then defines CSR. It then delves into key issues related to CSR, such as corruption, inequality, and environmental pollution. The report provides an analysis of these issues through the lens of different CSR theories, including economic, legal, ethical, and philanthropic responsibilities, as well as instrumental theory. The analysis section explores how these theories can be applied to address the identified challenges. Finally, the report offers recommendations based on the analysis and concludes by summarizing the importance of CSR in the modern business environment. The report is a comprehensive overview of CSR, its implications, and potential solutions to related challenges. The report also includes an executive summary, table of contents, introduction, literature review, analysis, and recommendations.

Running head: MANAGEMENT
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Study Skill for Higher Education
Report
Student
8/25/2019

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Executive Summary
This assignment is a literature review of corporate social responsibility which is categorized in
two different sections.
In the first section, an introduction of the literature review and its purpose has been described.
The next part of the assignment summarizes about corporate social responsibility. In the section
literature is selected which would be based upon CSR, further, the section will be described with
the definition of CSR. In the assignment, the analysis is conducted on the available information
collected by the help of research. The report summarizes the importance of corporate social
responsibility.

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Contents
Introduction............................................................................................................................................2
Literature Review..................................................................................................................................2
Purpose of Literature Review............................................................................................................3
Literature Review of CSR.....................................................................................................................4
Brief description of CSR...................................................................................................................5
Key Issues related to CSR.................................................................................................................6
Analysis.................................................................................................................................................6
Recommendation...................................................................................................................................8
Conclusion.............................................................................................................................................9
Bibliography........................................................................................................................................10

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Introduction
The report aims to understand the literature review and its main purpose. Mainly, the literature
review is an act that is performed to gain knowledge about any topic written in the articles. In
this report, the literature is reviewed which is based upon the corporate social responsibility. The
report is also defined with the meaning of corporate social responsibility. For any process, there
are some reasons or issues, which lead to the introduction of any methods to overcome those
issues (Turner, 2018). According to John R. Turner, today every organization wants to develop
their positive impact on the market or society the term corporate social responsibility is the
medium which helps the organization to manage its impact in the society. In the report, the key
issues are also discussed due to which the process of CSR was introduced (Mustafa, 2017).
According to Bingo Mustafa in 2017 , CSR varies with the industries or organizations for every
organization there is a different strategy to manger their impact. The report is also discussed with
the area to focus so that the issues with the process can overcome. The report is also analysed
and after that, the recommendation is provided to improve the process.
Literature Review
As per the views of author Beatrice D׳Ippolito ( 2014), a comprehensive summary has been
conducted upon the topic on which the research is already performed. It is performed over the
scholarly articles, books and specific sources on which research is performed. The literature
review provides a theoretical base to the research and that supports the author to identify the
nature of the research. This process or act is used to describe or summarize previous research on

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any topic. The literature review is used to develop an understanding of the topic (D׳Ippolito,
2014). By using literature review the key findings of the article, concepts, and developments that
can be made for the problems rises in the research can easily perform. The literature review
includes the following sources which are described below:
1. It helps to analyse or interpret the literature so that all the perspectives of the topic can be
understood.
2. Literature Review is used to highlight the theme, conflicts, and gaps of the sources.
3. With the help of the literature review, author Yoon Sik Kim indicated that the knowledge,
related to the research topic, can be easily gained. If any individual is preparing or
writing the thesis then the review is conducted to provide the knowledge about the
situation of the research which already exists. In the literature review, a theoretical
framework is included or it may consist of the distinct chapter which is defined before the
results (Kim, 2018).
Purpose of Literature Review
The main purpose of the literature review is to understand the research, which is already existed
on any topic. With the help of the literature review, the knowledge is written in the format of a
report. By reviewing the literature, knowledge about the selected topic can be improved. The
literature review is prepared to determine the accuracy of the knowledge explained in the topic.
Lawrence A Machi in the article concluded that If an individual will perform the literature
review then the concepts related to the topic become easy to learn for that person (Machi &
McEvoy, 2016). With the help of it, the experimental techniques and different research methods
that are used to prepare the literature can improve the knowledge of the person. There are various
benefits of the literature review it would help the person or any individual in writing their

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research papers if the reading of the literature is conducted appropriately. According to the
author Hannah Snyder, By using this act the areas of duplication can be prevented and give
credit to other researchers. It helps to identify the conflicts of the previous studies so that they
can amend (Snyder, 2019).
Literature Review of CSR
As per the views of author, Ahamad Nisar Nalband and other (2013), social responsibility is one
of the deep routed characteristics for any country; it is the concept which explains the good
governance in a business organization. This process or act is not only preferred for the present
time it is implemented and getting used from ancient times. From the context of business ethics,
corporate social responsibility plays a very critical role. The activities, which are performed by
considering the CSR the sales of business organization, can increase by influencing employees
and domains of investment (Royal Literary Fund , 2019). The organizations, which are using
CSR with their process by possessing good rating, have the advantage in the human capital.
According to, the author Ahamad Nisar Nalband and other ( 2013) when the rating of CSR in the
organization is good then employees get attract to the business (Ahamad & Al-Amri, 2013). As
per views of Dongyoung Lee, there are many kinds of terms are available which are associated
with the corporate social responsibilities including corporative social responsiveness, corporate
social responses, corporate social performance, etc. all these terms are connected with the
distinct departments of the organization defined with their specific functions of management.
The stages of the CSR development are categorized into 4 categories which are entitled as
economic, legal, ethical and philanthropic obligations. The stages can be defined as follows (Lee,
2017):

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1. It is an economic responsibility of the organization is dependent upon the type of goods
and services provided by companies in the society according to demand to achieve profit.
The legal responsibility defines that the rules and regulations, which are proposed by the
government of the country, should be followed. Besides this ethical responsibility is
connected with the social expectations associated with the legal requirements.
2. As per the views of Carol A Tilt , The philanthropic responsibility is the indication of
the roles which completely voluntary as well as the decisions that can guide the desire of
business not connected with the social roles, which not comes under any law also not
demanded with the business using ethical sense. These four stages of CSR are also
considered as the pyramid and four levels of social responsibilities, which are expected
by society to get performed by the companies (Tilt , 2016).
According to Gallardo-Vazquez Dolores and others in 2014, in the CSR and its development, the
theory of stakeholders is one of the vital media to provide the platform. For continuous support,
companies rely on the stakeholders. For gaining the benefit from the organization people and
groups, show their interests in the participation with the enterprise for the legitimation (Gallardo-
Vázquez & Sanchez-Hernandez , 2014). The theme of CSR is responsible for the evolution of
leadership development theory and introduced new directions of leadership. The companies,
which are implemented with the CSR in their business process they are, not only want to
increase their profit in the market but also understand the obligations of society and provide them
benefit with their services (Gallardo-Vázquez & Sanchez-Hernandez , 2014).
Brief description of CSR
According to Patrick Kraus, Corporate Social Responsibility is a commitment and duty of the
organization, which must be fulfilled by them to maintain an ethical relationship with the

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shareholders and other social factors. Today it has become a crucial part of the commerce
industry as this sustainability approach reflects the contribution of the company towards society.
According to the World Business Council, CSR is a lifetime commitment and responsibility of
the companies, which involves the continuous contribution of the entities in the development of
the society without neglecting the interest of the employees and other stakeholders (Lindgreen &
Swaen, 2010).
Key Issues related to CSR
In the powerful and developed countries like Latin America and Asia, companies face various
CSR challenges. According to the research the key areas identified are:
I. Corruption: According Benjamin A Olken and others (2012), It means misusing the
power or the position with intention of gaining of benefit in illegal terms. Corruption
creates negative impact on the society as a whole. Due to corruption, quality of services
is degraded, it leads to injustice and employee turnover as well as company corrupt
tactics creates ambiguity in the mind of employees (Olken & Pande, 2012).
II. Inequality and discrimination: According to the author Stephanie Seguino and other
(2011), It means favouritism of one section over others. It includes various issues like
which effect CSR are education, gender discrimination, social status, racism, and
profession (Seguino, 2011).
III. Environment Pollution: As per the Hysenaj Medjon (2017) Harmful emission of gases
from the industries is creating negative impact on the environment. It creates greenhouse
effects and destroy the environment (Medjon, 2016).

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Prevalence of corruption and manipulation in the account statements, unethical practices,
inequality and discrimination in the chain of command are of the key issues, which create a
negative image of the company in the market, threatens the stability of the company. Moreover
many mining companies are involved in the activities are creating environmental pollution
According to the literature article presented by Gavin Hilson, in mining companies, there is a
high prevalence issue, which prevented through fulfilling social responsibility (Hilson, 2017).
For the sustainable development of the mining companies, social responsibility must be
considered as a prior (Kraus, 2012).
Analysis
According to the article “corporate social responsibility: definitions, theories, and recent
empirical research, author Patrick Kraus have stated that Corporate Social Responsibility
theories are one of the most reviewed business theories. To define the above issues, the
application of various theories will be discussed. To explain the above key issues (corruption,
inequality and trust issue among shareholders), theories are applied are
Economic Responsibility: It means to earn many. Companies who are operating in the
commerce industry without making a profit will fall one day, whereas NGO institutions make
good money from donations and grants, invest the accumulated profit into the business. In the
same way, companies can make money by working for the welfare of society.
Legal Responsibility: It means the implication of rules and regulations. Companies must
commit to fulfill the legal responsibility and conduct the activities adhere to the business laws
(Lambooy, 2014).

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Ethical Responsibility: It means conducting the task with an ethical attitude and behaviour. This
theory describes the ethical responsibility of the individuals towards the business and society.
Philanthropic Responsibility: It means contributing to the welfare of the community. It is a
charitable act, which must be performed by every responsible citizen of the community. In
today’s culture, philanthropy involves donations to other organizations. Due to this, many
organizations are choosing this path (Nikolova & Arsić, 2017).
Instrumental theory: This theory denotes wealth creation and utilizes social activities as a
piece of equipment to accomplish a profit. In the perfect competition, the main motive of the
company is to generate profit that can be achieved by creating maximum value for the
shareholder within the limit of the company. As per the research conducted by the author
Nikolova Ventsislava and other in 2017The firm must maximize the interest of the shareholders
by taking caring of their dividends and share in the company. The instrumental theory involves
the formulation of strategies, which can direct the company in attaining a competitive edge over
other companies. It is a popular approach to attracting the attention of clients and enhancing the
experience of the customer by linking the reliability of the brand with CSR. Moreover, with
globalization, the development of the local community has become a major concern for emerging
companies (Nikolova & Arsić, 2017).
Political theory: It involves connection and communication with society and. In this theory,
the author has indicated that commitment towards the health and survival of the environment has
become critical for the survival of the companies.
Ethical Theory: This Theory is based on the ethical duties and responsibilities of the entities
towards society. This approach is further discussed as a normative stakeholder theory, which

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highlights the duties of the company’s overall stakeholder of the firm. It includes suppliers,
employees, and citizens of the society, worldwide rights based on basic human moralities, labor
rights. It is a common theory adopted to create wealth and supply goods and services to the
citizens of the community.
Recommendation
As per Author the Patrick Kraus, contribution of the companies towards society creates positive
impacts on the business environment. It will enrich the experiences of the customers, as the
company will serve those products and services, which are environment- friendly. CSR
contributes to the maintenance of a high degree of transparency and accountability in the system,
which reduces corruption and builds trust between company and consumer. Through CSR
companies promote the interest of employees. By adopting the above theories, companies foster
corporate social responsibility in the company and promote the interest of every employee and
another stakeholder, which can generate profit in the end.

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Conclusion
From the above report, it can be inferred that Literature review is a procedure of providing
precise information regarding any kind of research that has happened earlier. It is conducted to
analyze the gap in the available sources and provide a recommendation of bridging the gap. It
helps the individual to conduct his/ her research and not them in the form of article. It helps in
identifying the loopholes of previous research. In the report literature review over corporate
social responsibility has been describing. Through the literature review key issues in CSR has
been detected. To prevent the impact of challenges, various theories have been described.