Corporate Social Responsibility (CSR) is defined by Carroll as “one that encompasses the economic, legal, ethical and philanthropic expectations placed on organizations by society at a given point in time.”
Economic Responsibilities, which is required by society, simply means that company has a responsibility to produce good quality products and services to their customers at the best price possible, economic profit for their shareholders, and job security and fair treatment for their employees.
Legal Responsibility, which is also required by society, simply means that the business must observe the rules and regulations imposed by where the company does business.
Ethical Responsibilities goes beyond what is required by the law. This responsibility entails that the corporation (through its people) must do what is “right, just and fair” even if the law does not require them to do so. Basically, corporations are required to comply with the so-called “norms” set by the society.
Philanthropic (or Discretionary) Responsibilities, which is something that is desired by society and not necessarily expected, This basically means pouring out love for fellow human beings which can be done through numerous ways such as but not limited to – charity for employees or the less fortunate, building hospitals for the needy, and the like. Philanthropic Responsibilities, as mentioned earlier, is not required or expected, however, it is something that would be highly valued by members of the society.
Before we further study what CSR is today, let’s first take a look at its history. CSR was said to start being known to people only by the 1960’s. However, before such time, organizations were always expected to act responsibly.
During the eighteenth century, Adam Smith, an economist and philosopher, realized that in order for free market to be achieved, both participants of the trade must act fairly and reasonably. In the nineteenth century, things changed, due to the Industrial... [continues]
Economic Responsibilities, which is required by society, simply means that company has a responsibility to produce good quality products and services to their customers at the best price possible, economic profit for their shareholders, and job security and fair treatment for their employees.
Legal Responsibility, which is also required by society, simply means that the business must observe the rules and regulations imposed by where the company does business.
Ethical Responsibilities goes beyond what is required by the law. This responsibility entails that the corporation (through its people) must do what is “right, just and fair” even if the law does not require them to do so. Basically, corporations are required to comply with the so-called “norms” set by the society.
Philanthropic (or Discretionary) Responsibilities, which is something that is desired by society and not necessarily expected, This basically means pouring out love for fellow human beings which can be done through numerous ways such as but not limited to – charity for employees or the less fortunate, building hospitals for the needy, and the like. Philanthropic Responsibilities, as mentioned earlier, is not required or expected, however, it is something that would be highly valued by members of the society.
Before we further study what CSR is today, let’s first take a look at its history. CSR was said to start being known to people only by the 1960’s. However, before such time, organizations were always expected to act responsibly.
During the eighteenth century, Adam Smith, an economist and philosopher, realized that in order for free market to be achieved, both participants of the trade must act fairly and reasonably. In the nineteenth century, things changed, due to the Industrial... [continues]
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