REVIEW OF RELATED STUDIES AND LITERATURE
To give a better view about the problems cited in this work, the researchers gave a review to these related literature and studies. These literature and studies, both local and foreign, summarized and discussed below concerns with the subjects relating to the factors, concepts, and issues regarding corporate social responsibility of business organizations.
Corporate Social Responsibility (CSR) is a critical issue across Asia. From local companies to multi-national conglomerates, how successfully business interacts with its environs and community is of supreme importance. As early as 1969, corporations have been paying attention to their impact on the local community and the world. Arising from the social justice movement of the 1960s, companies have found that it is good for their bottom line to be involved, to invest in their local community, to pay living wages and offer health benefits to their employees, to provide safe and sanitary work environments, to take care to avoid child or slave labor when purchasing parts and materials from overseas suppliers, to reduce pollutants produced by their product and to promote responsible business practices worldwide. Rather than bending laws or asking for exceptions, these companies strive to go beyond the law to ensure that what they do to make a profit is not at the expense of quality of life, sustainability or fairness to community members, suppliers, employees, investors or customers. The concept of corporate social responsibility means that organizations have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to its owners, or stockholders. However, CSR requires organizations to adopt a broader view of its responsibilities that includes not only stockholders, but many other constituencies as well, including employees, suppliers, customers, the local community, local, state, and federal governments, environmental groups, and other special interest groups. Collectively, the various groups affected by the actions of an organization are called "stakeholders." Corporate social responsibility is related to, but not identical with, business ethics. While CSR encompasses the economic, legal, ethical, and discretionary responsibilities of organizations, business ethics usually focuses on the moral judgments and behavior of individuals and groups within organizations. Thus, the study of business ethics may be regarded as a component of the larger study of corporate social responsibility. The nature and scope of corporate social responsibility has changed over time. The concept of CSR is a relatively new one—the phrase has only been in wide use since the 1960s. But, while the economic, legal, ethical, and discretionary expectations placed on organizations may differ, it is probably accurate to say that all societies at all points in time have had some degree of expectation that organizations would act responsibly, by some definition. The history of Corporate Social Responsibility is almost as long as that of companies. Concerns about the excesses of the East India Company were commonly expressed in the seventeenth century. There has been a tradition of benevolent capitalism in the UK for over 150 years. Quakers, such as Barclays and Cadbury, as well as socialists, such as Engels and Morris, experimented with socially responsible and values-based forms of business. And Victorian philanthropy could be said to be responsible for considerable portions of urban landscape or older town centre today (Adrian Henriques, 2003). In the eighteenth century the great economist and philosopher Adam Smith expressed the traditional or classical economic model of business. In essence, this model suggested that the needs and...
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