The Concept of Corporate Social Responsibility and Stakeholder Theory

This essay examines the relationship between Corporate Social Responsibility (CSR) and Stakeholder Theory, emphasizing their importance in business ethics and corporate governance. The essay analyzes how CSR, as a part of organizational duties, aligns with stakeholder interests, contributing to a firm's ethical practices and operational problem-solving. It highlights that CSR is a direct or indirect response by a firm to its business activities based on the stakeholder theory. The paper references articles by Freeman and Dmytriyev, Gangone and Gănescu, and Nikolova and Arsić, which collectively illustrate that stakeholders are crucial for supporting CSR strategies and enhancing long-term advantages by building consumer trust. The essay further discusses the evolution of CSR, its strategic objectives, and the relevance of various CSR theories such as political, instrumental, ethical, and integrative theories in defining the relationship between society and business.

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The concept of Corporate
Social Responsibility
concerning the Stakeholder
theory

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Table of Contents
Summary of the articles...............................................................................................................................2
References...................................................................................................................................................4

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Summary of the articles
The first article determines the connection between two concepts of business integrities one is
the stakeholder theory and the other one is the corporate social responsibility (CSR). From this
study, it is viewed that CSR is a part of organization duties to all shareholders and stakeholders
and it helps in fulfilling the business ethics of the respected firm. Throughout the past decade,
many scholars suggested that a thin relation lies in between these two concepts and one of the
most important similarity is that both CSR and stakeholder theory identify the significance of
incorporating societal interests into the operational procedure of the particular business (Freeman
and Dmytriyev, 2017). In addition, the two concepts differ on the fact that CSR is the
responsibility of the organization in relation to society whereas stakeholder theory is
characterized by the responsibilities of the overall business. Therefore, from this study, it is clear
that both the stakeholder theory and CSR are considered to be an important part of business
ethics and are useful for solving the various operational problem occurring in a firm.
The article demonstrates that shareholders or investors play a significant role in the activities of
corporate social responsibility (CSR) and therefore it acts as an apparatus to support the firm's
CSR strategy. The research mainly emphases on the various stages of the theory related to
stakeholder in relation to actions of CSR. From the study, it is revealed that stakeholder is
considered as the base of the firm and it plays a vital role to support and enhances the success of
the organizations. In additions, it is noticed that the companies become aware of the impact of
stakeholders because any sorts of the problem may directly or indirectly affect the objectives,
corporate actions, and policies of the organizations (Gangone and Gănescu, 2014). From the
paper, it is clear that on the basis of stakeholder theory, the CSR is considered as the direct or
indirect, fiscal or non-fiscal degree of responsiveness shown by a firm in concerning to their
business activity. Therefore, it is clear that CSR is the most important tool to operate the theory
of stakeholder and CSR is also important in confirming long-standing advantage by enhancing
the trust of consumers and other stakeholders.
From this study, it is revealed that from the past decades the concept of CSR has been rapidly
increasing and nowadays it is considered one of the strategic objectives for many companies in
the world. Therefore, CSR is determined as the component of corporate governance and provides
huge benefits in fulfilling the objectives of every organization in the market. From 1700 BC the

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concept of CSR had been originated, and in present days the stakeholders stand as a key factor
for the victory of this CSR practices (Nikolova and Arsić, 2017). In this paper, various concepts
of CSR such as political, instrumental, ethical and integrative theories are briefly described that
only determine the actions of CSR practices in a firm. Hence, from this article, it is clear that
both stakeholders and theories of CSR are related because they define the relationship between
society and business.

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References
Freeman, R.E. and Dmytriyev, S., 2017. Corporate social responsibility and stakeholder theory:
Learning from each other. Symphonya. Emerging Issues in Management, (1), pp.7-15.
Gangone, A.D. and Gănescu, M.C., 2014. Corporate social responsibility in emerging and
developing economies in Central and Eastern Europe–a measurement model from the
stakeholder theory perspective. Economic research-Ekonomska istraživanja, 27(1), pp.539-558.
Nikolova, V. and Arsić, S., 2017. The stakeholder approach to corporate social responsibility.
Eng Manag, 3, pp.24-35.