Corporate Social Responsibility: A Value Adding Business Function
Prepared by: Randeep Moore
Student ID: 301064174
BUS 421: Kim Trottier
This paper examines the similarities and findings of three academic papers related to Corporate Social Responsibility (CSR) in accounting. Assumptions are made regarding the importance of CSR to the success of businesses. By looking at three different pieces of literature from the accounting field, there is strong evidence that suggests CSR can be considered an important business function that contributes to profitability. Furthermore, branches of CSR such as Social and Environmental Accounting (SEA) and Greenhouse Gas (GHG) emissions disclosure play important roles in determining business success.
Corporate Social Responsibility (CSR) is an influential aspect in the accounting profession due to its ability to effect businesses, stakeholders, and the community. This paper will address the similarities, findings, and assumptions of three academic papers related to CSR in accounting. In general, there is a trend in the literature toward increasing the amount of CSR reporting, which leads to the assumption that CSR is a critical factor for businesses to be successful. Idowu and Papasolomou (2007) examined the motivations behind the issuing of CSR reports by UK companies, and more specifically whether they were based on good intentions or false pretences. The authors find that the “respondent companies genuinely believe that to be socially responsible is good for business” (Idowu and Papasolomou, 2007, p. 145). Although the reasons differ, there is a belief within these companies that “any resources companies devote to undertaking CSR programs, they believe will sooner or later be recouped…” (Idowu and Papasolomou, 2007, p. 145). Some of the reasons given for the use of CSR include informing stakeholders, transparency, and deriving positive public relations benefits. The argument that...