CORPORATE SOCIAL RESPONSIBILITY
James Patrick Santos
- Corporate social responsibility is the corporate enthusiasm to determine and take responsibility for the results of the company’s activities on the environment and impact on social welfare. The term generally applies to company aspirations that go beyond what may be standardized by regulators or environmental protection groups. It may also be referred to as "corporate citizenship" and can include acquiring short-term costs that do not provide an immediate financial benefit to the company, but instead develop positive social and environmental change. A study made by Herman Aguinis and Ante Glavas in 2012 arrived to some conclusions why firms engage in CSR. Their journal entitled What We Know and Don't Know About Corporate Social Responsibility : A Review and Research Agenda says that “First, this is due to instrumental reasons such as expected financial outcomes. Second, firms also engage in CSR due to normative reasons that lie in the firm’s values (i.e., doing the right thing). Third, there is a small but positive relationship between CSR actions and policies and financial outcomes. In addition, despite the inconclusiveness regarding the actual size of the CSR– financial outcomes relationship, there are several nonfinancial outcomes that result from CSR such as improved management practices, product quality, operational efficiencies, attractiveness to investors, and enhanced demographic diversity (e.g., women and ethnic minorities). Fourth, only 7% of the studies in our content analysis explored mediators of the CSR–outcomes relationship. Underlying mechanisms identified thus far include a firm’s intangible resources and managerial interpretations of CSR as an opportunity. Finally, regarding moderators, the CSR–outcomes relationship is strengthened when level of exposure and visibility are high and size of the company is large.” Companies have a lot of capabilities in the community and in the national economy. They have authorities over a lot of properties, and may have billions in cash at their disposal for socially conscious investments and programs. Some companies may engage in "green washing", or feigning interest in corporate responsibility, but many large corporations are devoting real time and money to environmental sustainability programs, alternative energy or clean technology, and various social welfare initiatives to benefit employees, customers, and the community at large. There have been more pressures coming from employees, customers and government bodies for firms to be more open about their activities and that they reach and maintain acceptable standards in their business practice. For employers, CSR is now seen as an important way to develop competitive advantage, protect and raise brand awareness and gain trust from customers and employees. Figure 1
| A framework for development of C
FRAMEWORK FOR DEVELOPMENTAL OF CSR
In the flat world, with lengthy global supply chains, the balance of power between global companies and the individual communities in which they operate is tilting more and more in favor of the compa- nies.... As such these companies are going to command more power, not only to create value but also to transmit values, than any other insti- tution on the planet.”9 Many factors and influences have led to increasing attention being devoted to the role of companies and CSR. These include: *
Sustainable development: United Nations’ (UN) studies and many others have underlined the fact that humankind is using natural resources at a faster rate than they are being replaced. If this continues, future generations will not have the resources they need for their development. In this sense, much of current development is unsustainable—it can’t be continued for both practi- cal and moral reasons. Related issues include the need for greater attention to poverty...
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