Analysis of Corporate Social Responsibility: A Literature Review

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Assignment 2: Individual Report on Literature Review
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Table of Contents
1. What is a literature review and what does it achieve?.................................................................3
2. Write a literature review on “Corporate Social Responsibility?”................................................4
Introduction......................................................................................................................................4
Body.................................................................................................................................................4
Key drivers of CSR......................................................................................................................4
Theories associated with CSR.....................................................................................................5
Examples drawn for CSR practices.............................................................................................6
Success stories of few Companies doing CSR right....................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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1. What is a literature review and what does it achieve?
A literature review is associated with a summary and a good explanation of the desired state of
knowledge associated with journal articles and books. According to Hrastinski (2008), two kinds
of literature review could be written at university level: one that the students are being asked to
write standalone assignments during a course, and next is the part of training in a research
process, usually written as a thesis. The perspective of the review and the type of thesis argument
will create to decide what type of review is being written. One such way to understand
differences between papers would be to read the published reviews or the first chapters of a
thesis. From the opinion of Maier (2013), it gives readers an easy access to the research on a
certain topic, so that selecting high quality articles will be relative, and valid for the study. It also
offers a starting point for the researchers to conduct the research, by forcing them to evaluate,
compare and summarize the original research in a specific area. With the notion of the clues for
further research, it posits the key findings, contradictions and the gaps in a literature (King et al.
2014). It also offers a constructive analysis for the methodologies, and the ideas other researchers
have gathered.
A literature could be achieved through three phases: Introduction, Body and Conclusion. From
the notion of Ghobadi (2015), the introduction will ideally establish and focus on the subject
importance. It also tends to discuss varied kinds of work done on the concerned topic, such that it
can identify the controversies within the recent research field. It would be however undertaken
with a history or background, so that the statement will sum up in evaluating the “State of Art” in
the research. For the body, it is divided in subheadings/headings. According to Rowley and Slack
(2004), the body of the literature will evaluate the state of knowledge, as it notes down the
themes of the topic, trends and the findings, which the researcher may disagree or agree. The
purpose however is to make argument, so that justification will be idealised on the proposed
topic. Moreover, the conclusion will sum up with the presented evidence, so that significance can
be equated from the topic (Aburn et al. 2016). If the review of the research would be good, it will
also highlight the gaps, and indicate how the previous research leads to the chosen method and
research project.

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The literature also reviews regarding the interest of the topic by using keywords like Computer
database, and a lead of reference lists of reviews and some recent articles. The positive aspect of
any literature to achieve is considered from the research interest, so that assumptions seem to
work with the subjects, testing processes and the materials tested. Moreover, producing any type
of literature also is related to post-graduate work of a student (Hrastinski, 2008). Additionally, it
serves as a major purpose of a research proposal, which will lead to a thesis or dissertation
formulation.
2. Write a literature review on “Corporate Social Responsibility?”
Introduction
Corporate Social Responsibility has earned salience over the last few decades, and its literature
sets up with social responsiveness. It could be argued that in society and business, it leads with
expectations regarding the way business principles work. CSR has presented a philanthropic
model where they can make profits by setting expectations of the organisations in a given time. It
is seen that a company could receive benefits, so that expectations of the organisation will work
evidently (Scherer, 2018). Ideally, the European model is focused in operating a core business in
a responsible way, so that it can be complemented by investment in communities. It is built by
the concept of CSR, which is a self-regulating mechanism where business can monitor and
ensure support to the ethical standards. This research will initialise key concepts related to CSR,
with key drivers and theories.
Body
Key drivers of CSR
CSR is seen to be competitive driver that needs appropriate resources. At first, the Bottom line
Effect is a significant driver for the CSR programme, as it incorporates socially liable element
into the corporate practices. From the argument of Jamali et al. (2017), most companies tend to
exhibit role of a corporate citizenship through philanthropy and charity. Nonetheless, a new
prospect has evolved over time for the corporate stakeholders. Their success is now being

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defined by evaluating the business through a “Triple Bottom Line” comprised of financial
performance and environmental measure. According to Marano et al. (2017), an endeavour for
adopting the CSR programme has been gaining key personnel in the market share and through
investment. In fact, there has been influence of the corporate disasters that have increased
perception of greed for the senior business officials in corporate world. Since CSR is
counteracting with allegations of corporate greed, it is shifting away from philanthropic
approach, and moving with alignment of CSR through the corporate governance.
From the ideology of Chen et al. (2018), lower equity risk premium and reputation management
is also a key driver. Most companies face these economic issues when brands and corporate
reputations have been assailed, or affected heavily by customer boycotts. In that quest, it is
imperative to have a direct correlation between financial outcome measures with credit rating
and share price through reputation. In fact, most companies also tend to face that reputational
risk, in case they do not find any ample social compliance programmes in place. In today’s
market, companies should heavily focus on maintaining customer loyalty (Shen and Benson,
2016). For this, CSR programme will help to build loyalty with customers by offering
competitive advantage in marketplace. It is done to analyse if the customers will ethically deliver
services and goods well, or not. The last driver could be the stakeholder activism and investment
incentives. As discussed by Scherer (2018), CSR could be encouraged by the activism of the
pressure groups that often address alleged failure of the government policy. For this, the trends
of investment give CSR an extra incentive where funds may be screened on social,
environmental and ethical criteria. Proactively, this agenda encourage businesses, which will
inform shareholders through potential risk and issues.
Theories associated with CSR
According to Öberseder et al. (2013), the Operational Efficiency Theory may occur when there
could be a right area of people, process and technology. This will help to boost value and
productivity with operating business operations. In case, this may also decrease cost for the
routine operations as well. From the context of CSR, it is evident that operational efficiencies
may be attained by managing the impending liabilities and risks through decreasing cost. It can
also help to stream information to the stakeholders who would be a major concern of investment

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community in finding the better transparency (Michelon et al. 2015). The results for the new
market opportunities will be however expanded to other markets or regions.
From the Stakeholder theory, it can be asserted that a key aspect of CSR may include the way
where the company collaborates and engages with suppliers, customers, debt holders, NGOs and
the government. From the ideology of Rangan et al. (2015), organisations can use the
stakeholder engagement in order to internalise situations, needs and hopes of decision-making
abilities and corporate views. Few questions may arise on how far company’s liabilities can
extend to the communities, which are being relative to the role of individual citizens and
governments. Thus, a strong argument lies where CSR could develop the company’s
communities and relations in order to develop business prospect for future.
Examples drawn for CSR practices
According to Hopkins (2017), social responsibility is making the world a better place where
benefits in terms of customer marketing efforts to recruiting can be made possible. From Nielsen
Global Survey for the Social responsibility, half of the people surveyed are been willing to pay
more on services and products than companies who are committed for providing a social
environmental impact. In that case, Google has achieved its 100% renewable energy target by
2017, and now is the biggest corporate renewable energy purchaser. As such, the company also
offers the grants to dedicated social impact initiatives, including Pratham Books and Goodwill
Industries International (Sheehy, 2015). In order to facilitate in Green Commuting to worker gift
matching, Google has been inspecting every phase of their business with social impact lens.
From the viewpoint of Jamali et al. (2017), LEGO group is one notable example of CSR, which
can be an incredible asset to well-known brand. The firm has been recently slated, as one major
example of social liability by RepTrak 100. With some of the partnerships like World Wildlife
Fund, it is witnessed that LEGO has made good obligation for reducing carbon footprint in
working towards 100% renewable capacity by 2030. Further, the firm is also developing public
commitment to the ethical business practices and for high standard to the employees.
Another Example could be Microsoft that has changed the way it plays, studies and works with
the software and computers. According to Marano et al. (2017), their philanthropy began with a
program during 1983 when it fledged a charity for $17000. It explained that Microsoft programs

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have not given time for the employees who have spent 5mn hours in volunteering but also on
cash. Moreover, the program also reached $1.6bn during 2017, and in track for reaching $2bn by
2020. It was found that the Software giant generate Microsoft Philanthropies by having a good
initiative to work with governments, non-profit firms and other businesses to make a future,
having skills, opportunity and knowledge. Perhaps, Chen et al. (2018) have opined that CSR
could grow the business, so that there can be effective corporate sponsorships made between
profit and the non-profit firms.
Success stories of few Companies doing CSR right
For many firms, it is not enough for making money or satisfying customers. According to
Scherer (2018), these firms often tend to go an extra mile but it gives back to the community, and
employees. A success story of Starbucks shows that being around four decades, it has worked
hard to operate their work in an ethical way. Since Starbucks has been ranked as the Fortune
Magazine 5th social responsible company by 2012, there could be a good reason for its high rank.
Thus, the company is looking for better ways for developing sustainable production of their
coffee. Further, Disney is being named, as one such firm where the company has been around a
long time. Its reputation is still glowing. Walt Disney is focusing heavily on social liability,
mainly on Community phase of environment and volunteerism (Shen and Benson, 2016). In
quest, Disney also has been a major provider for the aid after the disasters being hut in Haiti
during 2010. For that run, the firm is finding interest to protect environment, from nature films to
planting trees in the rain forest. Another instance may be NuSkin, which is a personal care firm
that has large focus in helping the communities. The programme did start in 2002 for allowing
the company’s sales leaders, customers and employees to donate the nutrient rich meals to those
needy children. Öberseder et al. (2013) have stated that Microsoft is also helping by their annual
Employee Campaign where the employees are attending fundraising events for the non-profit
firms.
Conclusion
It could be concluded from the literature that CSR has been supporting many firms, so that they
find sustenance in the global environment. With implication of theories, CSR has been playing a
pivotal role in business, so that new market opportunities could be developed. In quest, CSR has

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been in the urn of many success stories of business, on the way it implements programmes to
ensure legal compliance and manage risk factor. Moreover, in the competitive market, CSR has
stayed firm, so that it can help other stakeholders who are regarded as forefront of the business.

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References
Aburn, G., Gott, M. and Hoare, K., 2016. What is resilience? An integrative review of the
empirical literature. Journal of Advanced Nursing, 72(5), pp.980-1000.
Chen, Y.C., Hung, M. and Wang, Y., 2018. The effect of mandatory CSR disclosure on firm
profitability and social externalities: Evidence from China. Journal of Accounting and
Economics, 65(1), pp.169-190.
Ghobadi, S., 2015. What drives knowledge sharing in software development teams: A literature
review and classification framework. Information & Management, 52(1), pp.82-97.
Hopkins, M., 2017. CSR and international development. In CSR and Sustainability (pp. 88-108).
Routledge.
Hrastinski, S., 2008. What is online learner participation? A literature review. Computers &
Education, 51(4), pp.1755-1765.
Jamali, D., Lund-Thomsen, P. and Jeppesen, S., 2017. SMEs and CSR in developing
countries. Business & Society, 56(1), pp.11-22.
King, R.A., Racherla, P. and Bush, V.D., 2014. What we know and don't know about online
word-of-mouth: A review and synthesis of the literature. Journal of interactive marketing, 28(3),
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Maier, H.R., 2013. What constitutes a good literature review and why does its quality
matter?. Environmental Modelling and Software, 43, pp.3-4.
Marano, V., Tashman, P. and Kostova, T., 2017. Escaping the iron cage: Liabilities of origin and
CSR reporting of emerging market multinational enterprises. Journal of International Business
Studies, 48(3), pp.386-408.
Michelon, G., Pilonato, S. and Ricceri, F., 2015. CSR reporting practices and the quality of
disclosure: An empirical analysis. Critical perspectives on accounting, 33, pp.59-78.

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Öberseder, M., Schlegelmilch, B.B. and Murphy, P.E., 2013. CSR practices and consumer
perceptions. Journal of Business Research, 66(10), pp.1839-1851.
Rangan, K., Chase, L. and Karim, S., 2015. The truth about CSR. Harvard Business
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Rowley, J. and Slack, F., 2004. Conducting a literature review. Management research
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Scherer, A.G., 2018. Theory assessment and agenda setting in political CSR: A critical theory
perspective. International Journal of Management Reviews, 20(2), pp.387-410.
Sheehy, B., 2015. Defining CSR: Problems and solutions. Journal of business ethics, 131(3),
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Shen, J. and Benson, J., 2016. When CSR is a social norm: How socially responsible human
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