Corporate Social Responsibility

Topics: Corporate social responsibility, Business ethics, Strategic management Pages: 10 (3505 words) Published: December 2, 2013
An organization that is able to handle change throughout its internal & external environment is meant to succeed. Corporate Social Responsibility is one paradigm that is the first to get affected with any kind of change in the organization. This study will relate whether strategic changes in an organization with respect to Corporate Social Responsibility activities are easily taken by the internal and external environment of an organization just because it is a Corporate Social Responsibility activity or it has to face challenges while implementations. As a strategic change in expected to bring a change in the business policy of the organization they may face challenges from the internal as well as the external environment of the organization. 1. What is CSR?

Corporate Social Responsibility is about management inventiveness and systems, and about how companies manage the social impact of their activities. Corporate Social Responsibility activities require the company’s total responsibility for the impact they cause by their business activities to all stakeholders and to the environment as a whole. Corporate Social Responsibility emphasize that any corporation could not act solely as an economic entity only separate from the surrounding environment. Corporate Social Responsibility is said to be done to address both company’s own competitive interests and the interests of wider society. Some of the best said definitions of Corporate Social Responsibility is: “Corporate Social Responsibility is the realization of business contributions to sustainable development goals. It refers to how business takes account of its economic, social and environmental impacts in the way it operates, maximizing the benefits and minimizing the downsides.” (World Bank, 2006) “Either motivated by a social conscience, the need of integration, legitimacy or market pressure, Corporate Social Responsibility comprises social obligations as the result of the economic, legal and ethical commitments towards society” as referred by Carrol There are two different opinions about the motive behind implementation of Corporate Social Responsibility. The first is that Corporate Social Responsibility is only an ethical behavior of a company to show its efforts for the environment and society improvement. This opinion assumes that this kind of company behavior is caused by a deep understanding of the company to act as a citizen, so that it has an obligation to develop its social environment, while the others believe that Corporate Social Responsibility is merely based on business considerations. A company’s objectives in implementing a Corporate Social Responsibility program is to gain more profit by developing its brand image, and establishing a good relationship with its stakeholders. This opinion assumes that the one and only responsibility for a company is to generate profit and improve shareholders’ wealth. Basically, there are three types of Corporate Social Responsibility implementation which are: Corporate charity – it is considered as small rewards the company shells out to help other organizations that are helping the needy it includes grants and social assistance, like a day visit at orphanage, donation for old age homes etc Corporate philanthropy – it is considered as a moral obligation by society that the company should share its profit. Includes events like charity shows, rallies, and road shows, acts like “Jago Re” by Tata Tea is an example of the same. Corporate citizenship – it is where the company implements a Corporate Social Responsibility program based on the nationality motive to achieve the goal for the common interest. Includes events like, Building foundations, Having Schools & Colleges for Students, Hospitals etc. 2. Importance of CSR in an organization?

Traditionally Corporate Social Responsibility programs were managed from a fixed budget but allocated to huge number of charity funds leaving the company’s impact to any charity at...
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